Welcome To SingingPig.co.uk

Paul,

I really need the default template. I don't remember getting it the first go around, but maybe I missed it ! Did you just "create" headed paper for the limited company ? And do you use your own name for signature etc ?  

Tim

Hi Tim,

Yes I don't use anything flash, just a word document created headed paper.  I'll email the defaults letters I have to you, though I have to admit someone just sent me the letter David is using and I like it better than any of them. 

Paul

I have two good clients and, coincidentally, they're my only two employed clients.

Both have nice homes and both have £200 loans.

Neither has ever mentioned a recommendation but I'll broach the subject as I get to know them better.

The most amazing thing about the 3 really bad clients is they trot out the same old excuses every time I see them as if it's the first time they've ever used them.

As far as I can see, there are only three reasons why anyone would ever repay a debt:

1) fear of violence

2) fear of legal action

3) personal decency

Most of my clients are unaffected by any of the above. 

You shouldn't need to ask for referrals, many clients will recommend you to their friends automatically.  If these two haven't then it may be that they don't want others to know they are borrowing money.  The major reason why people repay debts, apart from personal decency, is that we offer a useful service to them.  If they are bad with their payments then obviously this facility will be withdrawn/reduced.  For many families on low incomes the ability to borrow to meet unforeseen expenses is a very useful/vital facility.

Pal:

The major reason why people repay debts, apart from personal decency, is that we offer a useful service to them.  If they are bad with their payments then obviously this facility will be withdrawn/reduced.  For many families on low incomes the ability to borrow to meet unforeseen expenses is a very useful/vital facility.

Indeed, but the essential nature of the lower orders is that they think short term rather than long term. They'd rather spend the £7 they owe me on beer and cigs today than be able to get out of any predicament in 6 months time.

Obviously there are exceptions to the rule and the brighter ones will see the wisdom of what you say.

Sadly, however, most of them can't see further than the next 5 minutes.

I was walking up a client's path today when a little boy (about 5), playing in the garden, pipes up:

'Are you the milkman?'

'No, I'm not the milkman'

'Are you a bill man?'

'No, I'm not a bill man'

'Are you a social worker?'

Rumpole:

Indeed, but the essential nature of the lower orders is that they think short term rather than long term. They'd rather spend the £7 they owe me on beer and cigs today than be able to get out of any predicament in 6 months time.

Obviously there are exceptions to the rule and the brighter ones will see the wisdom of what you say.

Sadly, however, most of them can't see further than the next 5 minutes.

This is definitely true of some clients but as born out by the percentages they are more in the minority than your experience to date suggests.  If this type of client were a majority then the business would not be viable and as you know from the number of people involved in this industry it is indeed big business with some of the major firms huge public companies. 

I hope you persist with this for long enough to reap the possible rewards but obviously this would mean further expansion and I get the feeling you have decided this is not for you.

As you guys will know, I have seen some good success since I started at the end of May, but Rumpole's experience got me thinking. When I started, I gave loans to all sorts (while always making sure they proved 1. they were who they said they were 2. they lived where they said they lived and 3. showed some proof of income). I was just pleased that people actually called because I was skeptical (sorry Paul) at first. But I have 3 people that I believe I will be issuing defaults to soon and, interestingly, they were all in the first 10 loans I ever issued. I really believe you get a "feel" for the applicants after a while and I think if I had my time again, I would sniff a problem now that I wouldn't have back then. A long winded way of saying don't give up too soon because the volumes will pay off. I reckon that 75 % ( minimum ) of my customers are completely reliable. I track them all very carefully and persist with the poorer paters with texts and notes through their doors at least twice per week.