Let Us Manage Loan Repayment 

Since 2009 our products have helped thousands successfully lend money with people they know. We’re proud to introduce LendingKarma Premium Plus, a new product where we manage loan repayment for you.

What is LendingKarma Premium Plus?

An add-on service for LendingKarma Premium where we proactively manage your loan’s repayment for you. Borrowers still pay the lender directly but we actively manage the process. Think of it as a “personal concierge” for loan repayment to help make sure your loan is successful.

Why LendingKarma Premium Plus?

Because it significantly increases your chances of success and lowers stress by…

  1. Letting us assume the burden of keeping the loan on track with a clearly detailed plan that we carry out.

  2. Having us facilitate difficult conversations if needed. No awkward conversations about late or missed payments.

  3. Using our service provides the IRS the required proof that it’s a legitimate loan in order to get the lender a tax deduction if the loan does default.

How Does LendingKarma Premium Plus Work?

1) We record payments

We verify payments with the borrower and lender, via email, phone call, or text message. We then record those received payments. If the lender uses our electronic payment verification we only need to update the lender of payment status when payments are verified.

2) We deal with late or missed payments

We’ll communicate with your borrower if they’re late or miss a payment. Most lenders don’t really want to be in the position of loan servicing. Everyone can rest easier knowing that it’s being handled in a way that’s agreed upon upfront.

3) We guide you through loan delinquency and default

If the loan does get beyond a simple late payment, we’ll work with the borrower on the lender’s behalf to get things back on track. If there’s an adjustment needed we’re in the loop. All communication and reminders are tracked.

4) We help the lender get a tax write-off if the loan defaults

If you’re using LendingKarma Premium Plus and your borrower does default, the lender may be able to write the loan balance off on their taxes as bad debt. The main criteria the IRS uses to determine if a loan is eligible for a bad debt deduction is whether or not there were attempts made to collect the outstanding debt, thus proving it is a real loan. If you’re using our service you’re covered. If you’re not, you’ll need to make collection attempts yourself, or hire an outside service at a considerably higher cost.

Can you walk me through what happens?

Absolutely. Once you’ve signed up for Premium Plus we’ll create a repayment template that specifies exactly what’s going to happen throughout the course of repayment so everyone involved is clear. Your loan’s amortization schedule is the basis around which we setup additional structure that can be tailored based on your preferences. Here’s our loan repayment plan template:

premium-plus-graphic

What if the loan defaults?

The entire loan balance is due. One last attempt at getting the borrower to pay is made and then…

LendingKarma will recommend either:

  • An outside collections agency is hired
  • If the parties agreed to arbitration and there is a dispute the loan is brought to arbitration where the result is binding
  • The lender writes off the unpaid balance of the loan on their taxes and LendingKarma sends the appropriate tax forms to both parties.
  • If eligible file a suit in small claims or hire an attorney to pursue legal action

How much is it?

We’re still finalizing pricing but if you are interested sign up below to be contacted with more details when we’re ready for customers.

$  per payment
$  per payment

Service Details Overview

For more detailed information about how LendingKarma Premium Plus works see the Premium Plus service details overview.