Detailed explanation of private lending dunning:
1. Keep communicating.
Initial contact: Communicate with the borrower as the loan approaches maturity to see if they can afford to make the payments on time.
Follow up regularly: If the loan is past due, check in with the borrower regularly (but not too often) to see how their repayment is progressing.
Listen and understand: Try to understand the borrower's difficulties, but also make clear the importance and urgency of repayment.
2. Send a reminder notice.
Written notice: Prepare a formal reminder that clearly lists the amount borrowed, interest, repayment period, and more.
Electronically: Notifications are sent via email or SMS to ensure borrowers receive them quickly.
Record-keeping: All records of communications with borrowers should be kept in a proper manner for later use.
3. Provide flexible repayment options.
Installment repayment: Allows the borrower to repay the debt in several installments.
Interest adjustments: Within reason, consider adjusting interest or penalties to ease the burden on borrowers.
Deferred repayment: If the borrower has a reasonable reason, a grace period may be considered.
4. Seek professional help.
Collection Agency: Consider entrusting a professional collection agency to carry out the collection, they usually have a wealth of experience and means.
Legal advice: Seek the advice of a lawyer about the legal measures you can take, if needed.
5. Take legal action.
File a lawsuit: If all else fails, you may choose to file a lawsuit in court to order the borrower to repay the loan.
Application for enforcement: After obtaining a favorable judgment, if the borrower still does not meet its obligations, it can apply to the court for enforcement.
It is important to remain calm and professional throughout the dunning process. An overly aggressive approach to dunning can lead to a deterioration in the relationship with the borrower and even legal disputes. And effective communication and reasonable solutions are usually more conducive to the recovery of loans.