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Showing posts from November, 2012

Four Ways to Get Consistent Payments from Borrowers

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As a small lender, it's much more important that every one of my loans stays on track.  Once the loan is made, the terms are set, but I can still have an active role in ensuring the performance of my accounts.  These simple steps can help minimize risk and bring consistency to your cash flow.
Deposit checks immediately When the borrower sends the payment, they've marked a piece of their bank account with your company's name.  The money is set aside, and typically, the funds are credited based on the date received and not the date deposited.  The borrower will appreciate the quick turnaround to their bank.
From the day they mail the check, each day that passes your money is sitting in their bank account collecting dust instead of interest.  If it's there too long, the borrower might find another use for it before the check clears! Send statements like a metronome Paying the bills on a fixed pay schedule is a fact of life for any modern adult.  Our borrowers receive the…