Bfree Develops Innovative Model For Bad Loan Recovery

COO and Co-founder of Bfree, Chukwudiebele Enyi, has announced a revolutionary loan recovery model. 

The model is said to factor in discounted cash flow value, inflation, and lending costs to recover amounts over 1-2 years.

Enyi in an interview with ARISE NEWS on Friday, said that the model would offer flexibility and understanding to customers and defaulters, aligning with lenders’ pressures.

By taking a more comprehensive and nuanced approach, he said, Bfree is  aimed to make a positive impact in the loan recovery landscape.

 He also emphasised that loan recovery is a competitive process, describing it as “fighting for pocket share.”

“Our model works with the discounted cash flow value of the loan performing asset, considering the amount to be recovered over a year or two, with a discount factoring in current inflation and lending costs,” Enyi explained.

“This allows us to be flexible with customers and defaulters, understanding the pressure lenders face, and taking a longer approach to loan repayment,”he said.

Enyi explained in response to regulatory authority, that Bfree operates in three markets – Nigeria, Kenya, and Ghana.

“The company works with the Bank of Ghana, Central Bank of Kenya, and Central Bank of Nigeria, depending on the market.

“In Ghana and Kenya, a license is not required to provide factoring services with regulatory approval, whereas in Nigeria, a license is necessary, except when using a sub-participation approach,”Enyi said.

“Bfree’s algorithm, called capability to replay and “ability to replay metrics, categorises customers into those who can pay and those who can’t.

“Our system identifies which category customers fall into, and our data shows that most customers are willing to pay but lack the ability to do so. We create repayment plans, breaking payments into manageable installments over time.

“As the economy improves, loan repayment is becoming less of a challenge,” Enyi noted.

“We’re making a positive impact in the loan recovery landscape,”he concluded.

Boluwatife Enome

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