Stop losing collections to payday timing and card fees
Most of your failed collections are not people who cannot pay, they are people the collection reached on the wrong day. Fix the timing and the rail, and the arrears book shrinks before any reminder is sent.
Where consumer collection leaks
Failures cluster. Pull a cohort of bounced Direct Debits and most of them sit in the two or three days before payday, when the account is at its lowest. The customer could pay on the 28th; you asked on the 25th.
Then recovery costs you twice. The catch-up payment often comes in by card, and a percentage fee on a small arrears payment is pure margin lost on money you were owed anyway.
Underneath it, payouts and collections live in different systems, so a drawdown over here and a repayment over there never meet on one ledger, and reconciliation is a monthly manual exercise.
The payment mix that fits
Not one rail. The two to four that match how money actually moves here.
The default collection rail, timed to the customer's real income and retried intelligently rather than on a fixed failed date.
Collect a variable amount for customers whose pay moves, within a limit they authorise once.
Recover arrears over a bank link with no card surcharge on a customer already behind.
Disburse loans the same day, referenced and reconciled on arrival.
Your flow of funds, orchestrated
A loan is paid out over Faster Payments and matched to the account on the ledger. Repayments collect over Direct Debit, scheduled to the customer's real payday and retried after a miss rather than re-presented on the same doomed date. Customers on variable income collect over commercial VRP. Arrears are recovered with a Pay by Bank link, not a card fee. One integration, one reconciled view of payouts and collections.
Every book moves money differently. We map your flow of funds and quote one integration across the rails that fit.
Related
Payments for consumer loan lenders: FAQs
Timing. Most failures land in the days before payday. Collecting on the customer's real pay date, and retrying intelligently after a miss, recovers a large share without any contact.
A percentage card fee on a small arrears payment erodes margin on money you were already owed. A Pay by Bank link collects it for a fixed, lower cost.
Yes. Both run through one integration and post to one ledger, so drawdowns and repayments reconcile automatically instead of in a monthly spreadsheet.
Tell us how you get paid
Send us the mix of payments you take and make, and we will quote one integration across the rails that fit, priced on your volume.