Avoid a Delayed Funding Loan
Time is money. And when you’re waiting for funding on your customer’s loan, this may be taken quite literally. As a merchant, it is critical that you get paid quickly—which is why LendingUSA strives to get merchants paid upfront within a matter of days. However, funding delays can inevitably occur. Whether you’ve experienced a funding delay or not, keep in mind that some delays are easily avoidable.
For merchants who want to be proactive and avoid funding delays, here are the three most common mistakes and how you can avoid them.
Incorrect Contact Info
Something as simple as an incorrect phone number or email address can throw a wrench in the lending process.
“When customers input contact information by themselves, they may put a spouse’s number just because they don’t want to receive calls,” explains Keith Carlton, a Solution Executive at LendingUSA. “Contact information can be validated by simply confirming it with the customer.”
Like Keith mentions, avoiding this type of funding delay is as easy as verifying contact information with your customer at the point of sale. Try baking this into your checkout process, so it becomes a habit for every customer. You can even create a checklist: Phone number, Email Address, and spelling of Last Name. By taking a few more minutes upfront, you can ensure that you avoid funding delays later.
Missing or Invalid ID
Verifying a borrower’s ID and keeping a scanned copy of the ID as a backup are critical steps required for funding a loan. The easiest way to verify an ID is to use LendingUSA’s Instant ID Verification tool; however, sometimes simple mistakes can happen that may lead to funding delays.
- Accidentally taking a blurry photo or miss the ID entirely
- Uploading an Invalid ID. Note: ONLY non-expired U.S. state government issued IDs are accepted. No military IDs.
Keith sees cases like this multiple times a month. “The two most common invalid IDs I see are expired driver’s licenses and IDs that read ‘not for identification purposes’.”
Avoiding these issues often comes down to educating your customers. Here are some reminders that you should reiterate to your customers before they attempt to upload their ID.
- Be careful to take a clear picture of your ID so that the information on the card is legible. If it is blurry, simply retake the photo.
- When uploading an ID, please make sure it is a valid U.S. state government-issued ID. This means a non-expired U.S. state-issued driver’s license or ID card.
Keith tells all his merchants “The best way to collect an ID is to use the ‘Request Via Text’ feature through your portal. However, even if you are using this feature please still scan a copy of the ID.”
Out-of-Date Bank Information
Rounding out our list of common funding delay culprits is something that you, the merchant, have much more control over. If your bank account information changes at any point while you’re a merchant with LendingUSA, it needs to be updated in our system to ensure uninterrupted funding. We realize that when this type of information changes there are myriad places that need to be updated; please include LendingUSA on that list.
This solution is easy to implement! You can update it in a few minutes by:
- Updating your funding profile on your portal here: https://portal.lendingusa.com/dashboard/funding-information
- Calling us at (800) 994-6177 and any available team member can update this for you.
Of course, LendingUSA is not just here to help give advice on how to avoid funding delays. Our dedicated solution executive team is here to make LendingUSA accessible to you and your company’s needs. As Keith puts it, “I just love hearing from my merchants. My favorite thing is feedback. Whether it’s positive or negative, it allows me to gauge how we are doing as a team and company and pinpoint areas where we can improve.”
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