Loans

Pawn loan reminder texts: what to send and when

A forfeited loan turns into inventory you now have to sell. Many customers who forfeit meant to redeem or renew and simply missed the date. A short reminder before maturity is the cheapest way to keep a loan earning, and it is easy to get wrong. Here is a routine that works and keeps you on the right side of the rules.

When to send

MessageWhenPurpose
First reminderAbout a week before maturityTime to plan the payment
Due soonTwo days before maturityThe nudge most redemptions follow
Grace periodDuring the grace period your state allows, if anyLast chance to renew or redeem

What the message should say

Keep it short, name the shop, and give the customer what they need to act:

  • The shop’s name and phone number.
  • The ticket number, not a description of the item.
  • The date the loan matures and the amount to renew or to redeem.
  • How to stop the messages.

Leave the item out. A text can be read by someone else in the household, and a customer may not want them to know what was pawned.

Measure whether it works

Compare the redemption and renewal rate on loans that got reminders with the rate before you started, by loan size. The forfeiture rate article shows how to count it. If you can, start with half your tickets for a month so the comparison is fair.

Where PawnCounter fits

PawnCounter already measures your forfeiture rate from your POS exports, and forecasts which open loans are likely to forfeit in the next 30 and 60 days from your own closed loans (see it in the sample report). Reminder texts are being built next and are not in PawnCounter yet. Our stake is plain: PawnCounter is what we sell.

See these numbers for your own shop.

Upload a sales or inventory export from the POS you already run. The Profit X-Ray is free, needs no card, and is ready in minutes.

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