Late payment or default of a P2P loan
Simple Crowdfunding operates a flexible approach to debt recovery, which is always geared towards what is most likely to achieve the best result for investors and is informed by the circumstance and behaviour of the borrower leading up to, and during times of distress.
Any default and chasing activity history is recorded against the fundraiser record.
We do not believe that a ‘one-sized’ approach is viable and Simple Crowdfunding must approach each situation mindful of how to best appeal to the fundraiser in distress to get the optimum recovery. This includes:
- Creating the right type of relationship at inception of the loan – underpinned by our human interaction and desire to understand the principals’ motivations and credibility
- Pre-chasing repayments automatically
- Chasing monies due on day of receipt, and if delays advised communicating appropriately with both fundraiser and investors
- Not being too rash with regarding to formal legal letters etc.
- Not being too late regarding formal legal letters etc.
Whilst communication alone won’t solve the issue, it enables Simple Crowdfunding to pass on coherent updates to investors and stay in communication with the people that are ultimately going to resolve the situation in a positive manner.
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