Expand your lending business with customer incentives
Customer incentives can be a powerful lever for growing a lending business when used strategically. From interest rate discounts and referral bonuses to flexible repayment rewards, the right incentives can attract new borrowers while encouraging repeat usage. But beyond acquisition, incentives also shape borrower behavior and loyalty, making it important to design them in a way that supports both growth and risk management. When aligned with your overall strategy, they can help you scale sustainably without compromising profitability.
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.
Building the right culture in your lending business
Building a lending business goes beyond credit models and technology. Culture is the real engine that keeps everything running smoothly. The right culture shapes how teams make decisions, handle risk, serve customers, and adapt to change. In this article, we break down the core elements of a strong lending culture and how they directly influence long-term success.
Fund your lending business with on-lending facilities
Accessing funds to finance loans is a challenge for small and medium sized lenders. We’ll explore on-lending as a source of funding for lenders.
What is Lending-as-a-Service?
The first thing to note about lending-as-a-service (LaaS) is that it's in the business of technology. It's not a money lending business.
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 mobile SDK works for lending decisions
Lenders who are aware of the realities of credit in Nigerian use smart technologies called software development kits (SDK). They are able to program their mobile apps and offer some functionality they may otherwise not have access to.
How to assess loan applications for individual borrowers
Here's how to thoroughly assess loan applications for individual borrowers to reduce non-performing loans in your loan portfolio
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.
A borrower’s right to data privacy is not negotiable
A borrower’s right to data privacy is not negotiable. Nothing gets your heart racing several miles per minute like the chance that you may not recover your loans, but that fear can never justify invading a borrower’s privacy. Responsible lending means collecting only the data you truly need and nothing more. Borrowers privacy is a fundamental right, and it must never be compromised.
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.
