Customer count or profitability: which is more important for a lender?
For lenders, growth often brings a key dilemma: should the focus be on increasing customer count or maximizing profitability? While attracting more borrowers can boost market presence and long-term opportunities, it can also strain resources and increase risk if not managed carefully. On the other hand, prioritizing profitability ensures sustainable operations but may limit market share and growth potential. Striking the right balance between these two objectives is crucial for building a lending business that is both competitive and financially resilient.
Importance of credit scoring for loan decisions
Credit scoring has revolutionized the financial landscape by replacing gut feeling with data-driven precision. By analyzing a borrower’s financial history lenders can accurately predict risk in seconds. This systemic approach doesn't just protect financial institutions from defaults; it democratizes access to capital, allowing for faster processing times and more competitive interest rates for reliable borrowers. In short, the credit score is the gatekeeper of financial opportunity.
Which is better for loan repayments: Cards or Direct Debit?
Explore the use of debit cards and direct debit as options for lenders and which is more effective for loan recovery
APIs for lenders to reduce NPL
Integrations via API to other ancillary platforms are key to ensuring your loans are paid back. They allow you to leverage on the tech, data and functionalities of the best providers to improve the quality of your loan flow.
What makes a great loan management software
Whether you decide to build your loan software or use a LaaS platform like Lendsqr, consider these things
5 lending business activities to monitor daily
There are key lending business activities to monitor to ensure your lending business is on the right track and these article gives you exactly what to track.
How to start lending for free with Lendsqr
We provide the tools and expertise to help you lend and avoid common pitfalls, so you can focus on growing your customer base and building a successful lending business.
Lendsqr teams up with Freshworks, offering $10k credit to startup lenders
Lendsqr has partnered with Freshworks to bring advanced back-office tools that make it easier to deliver a seamless customer and employee management experience.
Are lenders evil for charging high interest rates?
The average lender today typically charges 4% — 10% per month (48% — 120% per year). Whoa. It makes you wonder how they recover loans at these rates. At first glance, it seems outrageous, even exploitative but there’s more to the story when you consider the risks and costs lenders face in Nigeria’s financial landscape.
Lendsqr’s guide to responsible lending
If you’re a lender reading this, you’re probably thinking you made the right choice entering this business, right? Lending can be rewarding, but the real question is whether you operate with responsible lending practices. Responsible lending is essential for protecting customers, strengthening your portfolio, and ensuring long-term sustainability. This guide explains what responsible lending means, why it matters, and how to apply it effectively.
Tell your lending story. Win N50,000! 🏆
Every lender has a story, the challenges, the breakthroughs, and the lessons that shaped their journey. Now’s your chance to share yours and win ₦50,000! 🏆 Whether you’re a micro-lender, digital lender, or traditional finance operator, we want to hear how you built, grew, or transformed your lending process. Your experience could inspire others and highlight what it really takes to succeed in lending.
