Indirect loans are becoming increasingly popular in the modern lending landscape. While these products can be great for borrowers seeking the best rates and financial institutions hoping to expand their business, indirect lending also creates a unique set of challenges, especially when it comes to collections.
Many may view indirect lending as a short-term transaction with little opportunity to grow into a full banking relationship, but there are ways to build your indirect portfolio into a long-term avenue for generating growth within all facets of your business. In this article, we’ll discuss collections strategies you can employ to help turn a delinquent loan borrower into a member in good standing at your financial institution.
Make it easy for indirect borrowers to make payments
Indirect borrowers have the largest need for a convenient method to make payments on their delinquent loans—especially because this is often the only loan they have with you—and if your online banking solution is only available to current customers with checking and savings accounts, you’re leaving your indirect borrowers at a major disadvantage—especially if their account is in collections!
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