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What questions will alternative lenders be asked?

Aug 01, 2014 Sean Albert

What questions will alternative lenders be asked?

When consumers enter an alternative lending storefront, ready to borrow some much-needed cash for unexpected expenses like home repair after a natural disaster or a surprise medical bill, they're probably going to have a lot of questions. After all, this form of securing funds is unlike taking a loan out at a bank - the process is easier and often quicker at one of these alternative facilities.

The best way to make sure new clients are not only educated about the process but also comfortable with the situation and eager to become loyal customers is to have answers to their queries. Planning ahead and uncovering the most common questions and concerns before interaction is a beneficial action that should be covered in employee training for best results.

So, what types of questions should workers at alternative credit companies be prepared to answer?

Do you give lending advice?

Sometimes, people aren't just looking for a source of cash, they want someone to teach them best practices and basic concepts centered on lending. Often, the most successful lenders are those that go this extra mile. Inc. Magazine reported that offering advice shows that the company has the consumer's best interests in mind, which often gives borrowers comfort. Moreover, the source suggested offering individuals counseling on things like cash flow impact and how to determine if the loan is affordable.

Will I need to come back for more money?
The magazine also suggested that consumers might ask the number of clients who have to come back to re-up their loans. This can tell borrowers a number of things, such as the terms and policies of the company in question, as well as their potentiality of defaulting on the loan and driving themselves into debt. Of course, it's always best to be upfront about this percentage and explain any deviations from the norm.

Is there a maximum amount I can take out?
Because unforeseeable expenses - like a home damaged in a storm or a car accident - tend to be exceedingly expensive, some individuals might want to take out as much as they can and pay the sum back over time. This answer will vary from company to company, but it's also very dependent on the state in which the person is borrowing. Many regions now have laws concerning how much interest is charged, the amount that can be taken out and the number of times per year a person can borrow.