1. First and foremost - COMMUNICATIONS
# not necessarily more frequent, but more substantive
# use dates to manage expectations and stick to them (even if the date arrives and FS have nothing new to report, on that date, issue an update stating that and issue a revised date)
# do not hide, play down or delay bad news; remember "Give to a gracious message an host of tongues, but let ill tidings tell themselves when they be felt."
# good communication isn't hard, but it requires commitment and practice; used properly communication can save an organisation money and increase its reputation
2. Presenting information on Borrowers
# all loans should include the Borrower details
# all loans should clearly state any existing and previous loans to the Borrower
3. Loan apportionment
# introduce a 'bottom-up' apportionment model such as that used by Lendy
# FS can then never be accused 'getting it wrong' when setting max bid levels (or setting none at all)
4. Reporting
# Be clear and consistent on what constitutes a defaulted loan
# do not use guidance notes on irrecoverability for tax purposes (SAIM12000) as a definition for deeming the loans' status for default -- it might be construed as FS not understanding what SAIM guidance notes are intended for.
# do not include bonus payments in reported returns; they are optional, not available to all lenders and give a distorted view of returns experienced by the majority of lenders.
5. Development loans
# either stop doing them or do them 'properly'
# pay for independent monitoring; and make that monitoring available to lenders
# even if this means reducing the interest rate by a couple of percent, lenders will thank you for it