Audience: Loan Servicer or Collector, Upper Management, Developers, Loan Servicing/Collections Managers
Sometimes borrowers are unable to make their payments, but they might promise to pay next week or even in a couple of days. To make it easier to track these agreements, LoanPro has a 'Promises' feature. This article will explain what promises are and how they fit into your lending business.
What are Promises?
The promise functionality in LMS is designed to help you keep track of what your customers tell you they will do. These are verbal or written agreements made between your borrower and you. How your company handles promises is up to you, whether you require them to be fulfilled within a certain number of days or require the interlocking of pinky fingers. Whatever you decide, you'll have a place to keep a record.
Promises allow you to track the subject, the type, the amount, and the date. Until the promise if fulfilled it will be marked as 'Pending.' If the due date passes and the promise is not fulfilled the status will show 'Failed' and if it is completed the status will show 'Fulfilled.'
Where do Promises Fit?
As a lender it's important to be prepared for situations when borrowers don't make their payments. Promises allows you to keep track of what your borrowers say they will do. This also allows you to see how many times the borrower has made promises in the past. This can help you stay on top of problems and maintain your lending portfolio.
This Feature is Not
Promises are not a guarantee that borrowers will make their payments. This feature is for lenders to keep a record, it does not process payments. The borrower is still responsible for making the payment or fulfilling the agreement. Promises can be handled in a way that will best suit your business.
Promises – Intermediate: Explains how to create, track, fulfill, and export promises.
Payments 101: An introduction to payments. Payments are important to understand when creating and fulfilling promises.