Welcome To SingingPig.co.uk

Hi Rumpole,

I know you say you are not going to expand until after your holidays but seeing as how you have got off to such a bad start may I make a few suggestions (don't forget you can always call or email if you want specific advice too).

When (if?) you start expanding again limit your initial clients to either people working or on sufficient benefits that they can clearly afford the repayments (check banks statements/pay slips).

Stay away from young singles. 

Only lend to people that are in stable housing and are long term tenants

NEVER give a loan to anyone unless is it is signed up in their home and you can see they are clearly the tenant and stable,  plus insist on ID and utility bills to prove this.

Keep the initial loans to tight limits as set out in the manual.

Then build slowly from these clients refferals once they have proven themselves reliable.

Your expansion will be slower than it could be but hopefully you will balance out the bad start you got by taking on some decent clients. 

Paul

Good luck Tass - this is just what I intend to do hopefully over the next 6 months, however I will be starting off on a part-time basis until I am certain that I have my area and system set up correctly.  This will be difficult as time is very limited for me but I don't have the funds to go 6 months without a steady income, unless I get another BTS.

I plan to fund the loans with the proceeds from my first BTS that should go before Christmas hopefully. 

Please keep us posted on your business as it matures.

Regards

Rob

The sheer CHEEK of it!

I have 3 clients who are probably the worst clients in the world. They're obviously intending never to pay me a penny but I've remained pleasant and friendly with them simply because none of them has anything the bailiffs can seize and there's no point in making enemies unnecessarily, is there?

When signing up one of the above three, his brother was present and when I asked the prospective client if £7 was going to be easily payable, he says yes and his brother says 'If he doesn't pay it, I will'.

So, there I am tonight, talking to that very client and he's giving yet another excuse and yet again asking me to call back 'tomorrow' when his brother appears from inside the house and asks me if I can get him a loan.

He tells me he's working full-time and asks what the procedure is.

I nearly say the procedure is that he can kiss my effing @rse but they're both built like the proverbial brick out-house so I explain politely that it's up to my bosses who are currently reluctant to issue new loans as so many existing accounts on the estate are not-up-date.

My take on the situation is that because I've never threatened them or taken a high-handed attitude with them they think I'm a nice enough guy but that I'm a complete and utter mug . . . or the loan company is run by mugs . . . or both.

What a life, eh? 

^ I think this is one of the problems of this business. These two 'Mitchell' brothers are obviously thinking you're a soft touch and this I would guess is down to client selection. You're obviously not going to start anything and getting a court/bailiff on their case could end up with you being lynched! Is it not a case of only lending to people who have something to lose by court/bailiff action?

I wouldn't call it a problem per se, just a stumbling block for starting out.

I lent to a few shady characters at first, but have since started to develop an instinct (or so I like to think!).

I would send a polite letter saying that unless some agreement is made, then the company will either issue court proceedings, or sell the debt on. If no action is taken, I would simply stop calling, and send a default notice. Then court action. If word gets around that nothing happens to non payers, then everyone will take the mick. I can't see there being any comeback, as after all you are just 'working for a firm' or so the clients think.

I had a classic afew weeks ago. My company is called Apple Assets Ltd, and one chap told me that he had read it in the newspapers that we were expanding around the country!! I told him I'd have to verify it with the firm, as he was after a commission on potential clients he would know in Leeds and Doncaster....

A definite no no for me now is lending to young single people. Also a 'traveller' tried for a loan this week. That would have been fun....

Craig

I agree this is an initial stumbling block and expect that the lessons Rumpole learned with these clients will help him in future decisions.  Also if these bad clients give you recommendations they really are helping you.  Take the application or at least the name and address and keep a list of these so you know to never lend to them or anyone at that address, this can help save you future problems.  I think it's very important to follow the rules I set of never lending to someone you are uncomfortable with.  I understand that initially you worry if there are enough clients out there and are keen to sign a few up but as you quickly find out there is no shortage of business.

Rumpole you mention these bad clients a lot and I realise they must be getting to you.  I suggest you don't waste too much time on them, just call at your normal time on your way around and don't go out of your way.  Also ask them if the £7 or £8 payment is too much for them, suggest you change it to perhaps a £5 payment that they can more easily afford.  Tell them that will save you a lot of time calling on them when they dont have the money and also allow them to keep a good payment record for future loans.  Try to make it look like you are on their side and finding a way to help them for future loans.  I doubt that you will get all the money out of them still but this is probably the best bet to turn the situation around. 

I understand that you are reluctant to expand at this stage but what about your good clients, haven't you had any recommendations from them?  These are the ones you want to cultivate.

On another funny note (I'm sure you will all have stories as you go along about your clients)  I once had a client phone me up and ask for a top-up, he was a pretty poor payer and their was no way I would agree it.  He started off  "Hi Paul, I've just spoken to your head office and they have agreed a £200 top-up.  Could you bring it round tonight please?"   I barely stopped myself laughing down the phone as I asked him who he had spoken to as I have to get it authorised.  Needless to say the top-up never happened

Paul

""On another funny note (I'm sure you will all have stories as you go along about your clients) I once had a client phone me up and ask for a top-up, he was a pretty poor payer and their was no way I would agree it. He started off "Hi Paul, I've just spoken to your head office and they have agreed a £200 top-up. Could you bring it round tonight please?" I barely stopped myself laughing down the phone as I asked him who he had spoken to as I have to get it authorised.""

Paul, that made me laugh!

I take it you do this business as as Ltd company?
Do all the necessary letters (ie default letter etc), templates for flyers etc come with the manual?


Mark

Hi Mark,

Yes I do use a limited company.  All templates are included on CD supplied with the manual.  The default letters I am currently upgrading and anyone that has previously bought the manual and would like the template defaults just let me know.

Paul