How to Collect Your Money: Small Dollar Lending

Small Dollar Loan Collection Tips

Time to start making your collection calls. Yep, it’s a pain. Yep, we hate making these calls. But, you gotta do it DAILY! Every day rain or shine you gotta reach out to your borrowers and get your cash; or at least find out why they haven’t paid you AND when they will.

So… set up a schedule and get on the phone. It’s best to do what you hate the most FIRST; get it over with.



While we’re at it, ALWAYS have a checklist in front of you when you make your collection calls. Whether your calling a borrower about a payday loan, a car title loan, a signature loan… have your list WITH a picture of a really nasty Boss in front of  you. Why a nasty Boss? MOTIVATION to do the work!!

What’s on your COLLECTION CHECKLIST? Among other things:

  • Notes about your previous conversations with your delinquent Borrower. [What did she promise you during your last conversation?]
  • ASK FOR YOUR MONEY! [Make this request simple, easily understood and firm. Common sense, right?]
  • Why isn’t she paying you as promised? [Keep digging until you get the REAL answer! This will help provide you with insight for your next call with her and get you insight as to the likelihood of her paying you next go around. No payment? Slow payment?]
  • Push hard for full payment today – right now – or at least a significant partial payment. [Waive late fees if she pays today? Reduce the loan principal? Get creative!] 
  • Review and summarize THIS COLLECTION CALL with your borrower while she is on the phone. [Confirm everything said. Any promises made by you or your borrower.]
  • Verify her contact information. [Phones, email, Facebook, Twitter, text, employer… In an ideal world you get them all 🙂 
  • Followup your conversation with a text and an email.
  • Enter NOTES about this conversation into your Loan Management Software program. [Have these notes available for your next scheduled call with her!]
  • Finally, do some role playing. [Get on the phone with a fellow payday loan, title loan… employee and PRACTICE these collection calls. Take turns playing the role of a deadbeat small dollar loan borrower  🙂