Borrowers can re-use an existing mandate when applying for a new loan, saving time and simplifying approval. Learn how mandate re-use works and when to use it.
Re-using a mandate means a borrower can apply for a new loan using an existing, previously activated mandate instead of setting up a new one. This simplifies the loan application process for returning borrowers and helps lenders process repeat loans more efficiently.
This is useful when a borrower who used a direct debit mandate to repay a previous loan wants to apply for another loan.
For example, an e-commerce retailer who takes quarterly loans to restock inventory can simply use an existing mandate from a prior loan, rather than creating a new one each time. This helps them access funds quickly and stay consistent with repayments.
Read further: Are you still chasing payments? Direct debit can turn your loan collections around