Lenders in the financial sector are preparing for a possible dip in loan collections during the summer months. This expectation follows a pattern observed last year, where collection rates experienced a notable decrease.
According to the head of a non-bank lending institution, who requested anonymity, collections typically fall by approximately two percentage points during the summer season. The anticipated reduction is attributed to several factors, including a decrease in field visits and a potential rise in customer requests for deferments as business activities slow down.
The lender anticipates that collection rates should return to normal once temperatures moderate and business activity picks up. In the meantime, lenders are adjusting their strategies to mitigate the impact of the seasonal slowdown.
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