The Debt Collector Ep #1
As a company that is set up on the foundation of empowering aspirations, we continuously strive to maintain transparency on our platform. Over the last few months, we have been looking at how we can further improve the information we share with investors regarding delinquent loans. Just like any other investment, marketplace lending entails risk. Investors can mitigate this risk by having a diversified portfolio. The Investment Health Bar on the dashboard is one feature we built to have a better overview of your investments. In our efforts to continue to improve communications about our debt recovery process, we will be sharing some of our experiences in this light-hearted series – The Debt Collector
In May 2016, we launched a campaign for a media company who borrowed S$100,000. We were delighted when 48 people invested between $1000 to $10,000 in this campaign.
After accepting this loan, the company could engage a popular artiste for one of their mega-events. Five months went by without incident. Repayments were made on time.
In November that year, the SME missed a repayment.
Now, sometimes, unforeseen events can affect a business. We stay in touch with our SME clients throughout their repayment period to avoid any lapses and we’d already sent a gentle reminder to this company.
Just when we were in the process of getting things sorted, our partner organisation – DP Group alerted us that a leading bank had filed a bankruptcy against the company’s director
We contacted the director and highlighted that he needs to pay the outstanding amount. We agreed on a date in December.
When no payment was made on the agreed date, we contacted the director several times.
We found out that the person was overseas.
After finally reaching the director, we demanded a full repayment of the entire amount.
Obviously, we did not want our investors to suffer. What happened next? Stay tuned for the next episode.