We highlight startups using technology to help make debt collection more consumer-friendly, flexible, and efficient.
The Covid-19 pandemic has elevated levels of unemployment and economic uncertainty in countries across the world. As a result, consumers and businesses are more likely to defer loan payments until income growth resumes.
As loan defaults become more likely, debt collection and loan servicing startups are seeing increased traction.
The debt collection process begins when the loan goes into default, which is usually between 30 to 270 days of missed payments depending on the loan type.
With the demand for debt collectors reaching new heights, early- to mid-stage startups are emerging globally to address the demand and re-invent the entire debt collection process. In fact, funding to debt collection startups is on track to surpass 2019 numbers at the current run rate.