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Credit risk strategy in micro-lending
Micro-lenders face specific credit risks that demand a focused, operational strategy to cut default probability and improve repayment. This article defines four core risk groups (business, country, sector, borrower) and lays out practical controls: structured credit analysis, personal guarantees and collateral, LTV and term limits, risk-based pricing, portfolio reviews, provisioning, collections, and selective use of alternative data. It also shows how to encode these policies as auditable decision logic.
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How to Start a Consumer Lending or BNPL Business
Starting a consumer lending or BNPL business is not about launching a loan product and hoping demand appears. It is about building a licensing, funding, decisioning, servicing, and collections operation that can scale without losing control of risk. This guide breaks down the core business models, operating flow, technology stack, and decision logic you need to run it.
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Promise to Pay in Consumer Lending: How to Track, Test, and Improve Collections
Promise to Pay is one of the few early-stage collections signals that ties directly to recovery outcomes. The problem is not making the commitment itself. The problem is tracking it well, structuring the call flow around it, and using data to decide what happens when the promise is broken.
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Mystery Shopping in Lending: How to Test Third-Party Sales Channels
Mystery shopping is one of the few ways to see how lending is really sold outside your office. It shows whether partners explain terms correctly, follow consumer finance rules, and present your brand and product as intended.
That matters in BNPL, car leasing, and any model that uses third-party agents. The risk is not only poor conversion. It is regulatory exposure, inconsistent sales behavior, and approval-chasing nudges that change the customer journey.
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A Practical Guide to Collections Stages in Lending
Collections works best when it matches the delinquency stage, the product, and the customer profile. One contact strategy for every case creates noise, lowers customer experience, and wastes recovery effort.
This article breaks down pre-collections, early collections, late collections, and refinancing, with a focus on decision logic, segmentation, and disciplined communication.