The prime responsibility of the loan service company is to take responsibility of auditing loan status and making timely collection of the loan premiums. Thus, the original lender could focus on some different business units. To start with, you can make an agreement with the mortgage brokers to set loan against property and you can take the accountability to collect timely payments. The most importantly, as a loan service company you have to take care of the closure process of the loan holder. This could be of two forms, either the payer will foreclose the loan amount before ending date, or you have to forcefully close the loans based upon the degree of the default made by the payer. In this case, the borrower will pay the loan service company and the lender will receive the payment from the loan service company.
How to Open a Loan Servicing Company
Are you anxious setting goals of your new venture?
Don’t worry, we are here to guide you. First of all, you have to prepare a list of objectives and goals of your business portfolio. Set resources to collect payments, credit payments to the lender firm and provide a timely reminder to the borrower if there exist overdue. Secondly, you have to calculate the late fees and communicate to the borrowers accordingly.
You should also set the fee of your service. Make your own business set up, make a few file cabinets so that hard copy documentations can be kept safe. Now, to protect the personal asset of the borrower, you have to hire an external attorney to create your own documents.
Hire a few personnel such as HR, administrator, callers and risk managers as well, to make the collection process flexible. You should also hire an agency manager, who can perform the dual functioning of field visit and schedule uploading of the payments made by the borrower. The callers need to have collection experience so that payments can be gathered tactfully within the billing cycle.
Thinking about how to get manpower to serve the lender organization?
To set up the floor operations, put advertisements over newspapers, social media sites and the consultancy services to find suitable candidates as per your requirements. Post all job openings in the free job portals and try to use personal references as much as possible. After successful recruitment, develop a list of the private lenders within your locality. Engage different personnel to keep eyes on the newspapers to find the financial shakers and inventors. Get contact details from the directory and try to find good recommendations from the persons working in the lending sectors for a long time span.
Finally, introduce your new setup to the commercial lenders in your area. Send welcome kit describing your company background and profile. Present your services and accountability to make the collection easier for them. Finally, try to put your best efforts, and honesty maintains flexible communication with your clients as and when required. Gradually, you will experience higher business growth.