Managers and owners · Lesson 10 of 15

Arrears and write-off

Find an overdue loan in Analytics, read its arrears, set up reminders, write the loan off under policy and approval, and record a recovery.

About 15 minutes

Key ideas

1

See who is behind

In Analytics, the Overdue tab lists the loans furthest behind; in the example, Peter is ninety days late. On the loan, Arrears is what's overdue now, and Next due is the oldest unpaid instalment, so you know what to ask for.

2

Remind before it gets this far

Under Settings → Reminders, Payment reminders go out before the due date (in the example, three days before and on the day) and Overdue notices follow up after a missed date. Send each by email, SMS or both; SMS uses Credit Wallet credits.

3

Write off under policy and approval

Settings → Loan Defaults → Write-offs → Minimum days past due sets how far behind a loan must be before it can be written off; until then Write off is disabled. Write off shows what will be written off and what's Booked to loan loss, and Write off loan, with a Reason, sends it to a separate checker. Once the checker approves, the loan shows Written Off.

4

The debt stays; record recoveries

A write-off doesn't cancel the debt: the borrower still owes the full balance. When money comes back, Record recovery takes the Amount, the Payment Method and a Reference, so the payment can be traced. Recovered goes up, the loan stays written off, and the recovery is listed on the Money tab.

Practice

Try it in your training organization

  1. 1. Prepare a training loan that is behind: give it a Start date four months ago, get it approved and pay it out without repayments.
  2. 2. Open Analytics and choose the Overdue tab to find it; then open the loan from Loans and read Arrears and Next due.
  3. 3. Open Settings → Reminders and look at Payment reminders, Days before the due date, Overdue notices and the Email and SMS boxes.
  4. 4. Open Loan Defaults and check Minimum days past due under Write-offs.
  5. 5. As a branch manager, choose Write off on the loan, enter a Reason and choose Write off loan; as another user, approve it in Approvals and check the loan shows Written Off.
  6. 6. Choose Record recovery, enter a small Amount, the Payment Method and a Reference, choose Record recovery, and find the row on the Money tab.

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