How is it that Opportunity Fund maintains such a high (92%) repayment rate for our microloans? Well, it starts by knowing how to pick the winners – that is, our expertise at finding those successful entrepreneurs who have a great dream and plan, and all they need is the funding from us to move forward. But then it comes down to practical matters – and when it comes to getting our loans paid back, you have to make it easy for your customer.
For many of us, repaying a loan (mortgage, car, student etc.) is just a matter of setting up an automatic deposit and making sure the money is ready on time. Nearly 64% of our clients choose one of our automatic (electronic) options to repay their Opportunity Fund loan – either through ACH tied directly to their bank account, or using our EasyPay repayment feature tied directly to their merchant services account. But many of Opportunity Fund’s microloan clients (36%) don’t choose electronic payments, either because they prefer to work in cash, or don’t feel comfortable committing to a set day each month to make a payment
Thanks to a new service from Wells Fargo, we can now issue Deposit Cards to all of our clients who wish to make payments in person. But rather than having to go inside a bank during banking hours, now they can use the card at any Wells Fargo ATM – anywhere, anytime they like. It’s personalized for each of our clients, so the money they deposit is immediately credited to their Opportunity Fund account to pay down the balance on their loan. Because the card is deposit-only, business owners can even have an employee securely make a payment on their behalf. We currently offer this service to all of our new loan clients and are in the process of rolling it out to existing clients.
Anytime we can make our customers’ lives easier, it’s a win!