How to control the risks of the company?

[gogwalox]

Hello friends, I am working for a private loan company and want a helpful suggestion from you people. I want to know that while giving loans to so many people there are many risks of retrieving the loan amount along with the interest so how can we control the risks towards the company or how can we minimize the risks? Please suggest if anyone knows.

[karmadir]

Simple..

Research Research Research.

Try and secure the loans whereever possible..
Try to research your customer as much as possible, do they have CCJs, Missed Payments, large outstanding unsecured debt, a salary capable of repaying their commitment to you after regular bills and other debt has been taken care of?

If they're using your money to refinance, dont give them the bulk of the money, instead pay it direct to the people they have the outstanding finance with (to ensure they dont just take it and spend it)

In all honesty, if you're having to ask this, are you even sure you're cut out to deal with this?

I think that's true.

You have to find out the financial status of a person properly before approving him loan.