New Methods
The VFA allows for the development of new methods for debt management and default prevention. Previously, the guarantor financing model was more focused on default collection. Approximately 60 percent of a loan guarantor’s revenue was generated from the collection of defaulted loans, with less than 10 percent coming from default prevention and zero percent coming from delinquency prevention. Under the VFA, focus shifted to proactive delinquency, which means to stop repayment problems before they begin.
Read more about this topic: Voluntary Flexible Agreement
Famous quotes containing the word methods:
“A woman might claim to retain some of the child’s faculties, although very limited and defused, simply because she has not been encouraged to learn methods of thought and develop a disciplined mind. As long as education remains largely induction ignorance will retain these advantages over learning and it is time that women impudently put them to work.”
—Germaine Greer (b. 1939)
“The philosopher is in advance of his age even in the outward form of his life. He is not fed, sheltered, clothed, warmed, like his contemporaries. How can a man be a philosopher and not maintain his vital heat by better methods than other men?”
—Henry David Thoreau (1817–1862)