October 7, 2019
Loans that have defaulted and are no longer being paid are in the recovery stage of the lending cycle. A comprehensive strategy for optimizing portfolio performance will include a plan to address collections for these defaulted loans.
Formulate a plan to address outstanding collectibles.
Lenders should address outstanding collectibles using either internal resources or by contracting with specialized collections agencies. It is important to prioritize action in the recovery stage in order to prevent loss and ensure a loan program’s continued success.
Establish partnerships to maximize recovery.
The best approach for addressing defaulted loans is often by outsourcing collections to specialized vendors. Rather than diverting internal resources, a lender can establish partnerships with agencies that already have the expertise and infrastructure in place to recover capital.
Goal Solutions provides collections management services utilizing an extensive network of specialized vendors and helps clients recover outstanding collectibles that were written off.