Starting Point: Manual Collections Don't Scale

Early-stage lenders often handle collections manually. An agent reviews overdue accounts, calls borrowers, negotiates payment plans. This works when you have 50 loans. At 5,000 loans, you need automation.

The challenge isn't automating the calls or emails. That's easy. The challenge is automating the decision-making while staying compliant and maintaining customer relationships.

The Dunning Ladder

I like to think of collections as a ladder. Each rung represents an escalation level. Borrowers start at the bottom and move up based on delinquency age and response patterns.

A typical ladder looks like this:

• Days 1-3: Friendly reminder via email. "Your payment is coming up soon."
• Days 4-7: SMS and email. More direct but still friendly.
• Days 8-15: Phone calls begin. Escalate tone.
• Days 16-30: Daily contact attempts. Payment arrangement offers.