TCP Global uses summary reports to determine when a loan site is eligible for new funds. Most of our partners are not inclined to ask for more assistance, so we take the initiative and let them know they qualify, nor are they likely to withdraw funds for special projects. We advise them how much they have earned and assure them we will send another $1500 to replenish their loan funds if they decide to withdraw earnings. Sometimes we even suggest projects they might want to start. A partner in Colombia, whose primary mission is education, had frequently lamented the lack of funds to help their scholars attend college. TCP Global suggested a number of times that they withdraw their earnings to use as loans to college students. Eventually they implemented such a loan program – charging no interest until the student has completed studies.
Evaluation of the summary reports also helps TCP Global identify potential problems, such as increased delinquency, a failure to keep funds fully invested, or excessive interest charges.
If loans are not being repaid, TCP Global checks to make sure the partner is visiting the loan recipients. If they have a large number of open loans, we might recommend that they scale back the program to a more manageable size. It is better to have a smaller, well-managed program than a larger program with growing delinquency. If a few people get by with not repaying their loans, word gets out and collection becomes more difficult.
After a change in leadership, sometimes the new person lacks the interest or personality suited to running a loan program. It takes a risk taker, and someone who believes in their clients.
Occasionally, we find a borrower who paid considerably more interest than what is appropriate for the time period of the loan. In these cases, we bring that to the attention of the loan administrator who typically refunds the excess. We also find cases of loans that are prematurely reported paid in full. We ask the partner to double-check those as well to determine if TCP Global failed to record a payment or if the partner made a mistake.
Photos of La Olla Milagrosa's loan tracking system