The survey shows that 65% of those surveyed said that cash flow issues are to blame for defaults – up from just 14% who blamed cash flow issues for delayed payments in February 2020, suggesting that the Covid crisis is to blame for the cash flow problems of these consumers and borrowers. However, according to Onguard’s research, less than one fifth (17%) will personally reach out to chase overdue payments, according to p2pfinancenews.co.uk.
According to Onguard staff, automated debtor processes would benefit financial professionals such as alternative lenders, as personally contacting defaulters can become time consuming. More than a third (35%) of finance professionals said that their organisation lacks the software required for efficient working, while 55% still rely on programmes such as Excel and Numbers for day-to-day credit management.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now