The Debt Collector Ep #3 (Part 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
Episode #3 (Part 1)
It was 2016 and January of that year was full of excitement and expectations. One of the first few campaigns that got funded was for a logistics company. 57 investors raised $150,000 by investing amounts ranging from $1000 to $30,000 at 18% p.a. returns in this 12-month equal installment campaign.
After seven months of prompt payment…
…this company missed the repayment in August.
Despite all our calls, emails and polite requests, the company’s director failed to make payment for the month of August. The company also missed the next month’s repayment.
This was not acceptable!
To make it easier for the SME in repaying the debt, we agreed to a new repayment schedule to support the company and ensure our investors get their money back. According to the new schedule, the company was going to pay $5,000 initially and split the remaining amount into four installments of $21,000 each.
After paying the initial $5000, the company’s director agreed to give us postdated cheques to clear the outstanding amount.
All was rosy until….
Come back next week to find out what happened next.