The methods available for loan collections are just as diverse as the borrowers themselves. One method that stands out for its reliability and directness is Direct Debit. This payment method, accessible to lenders, facilitates the retrieval of funds from a customer’s account precisely when their loan payment is due.
Follow these few steps to activate direct debit on your loan product
1. Log in to the Lendsqr admin console, click “Product Management”, then “Loan products”, select the specific loan and go to the attributes section
2. Under the attributes section, scroll to the settings on “Repayment Methods”, click on edit then choose direct debit, please note that you can choose direct debit and debit card.
3. As a lender, once direct debit is set as a loan repayment method, the borrowers will be directed to activate a mandate to complete the loan application process, this will be activated electronically via a transfer from the account attached to the mandate, see How to activate a mandate
How to set up a mandate for a user
As a Lender on Lendsqr, you can also create a mandate to collect funds that were booked outside the Lendsqr ecosystem.
This can be done by creating a direct debit mandate on the admin console for the customer’s account.
