One of the clearest instructions in the transcript is this:
late payments must be addressed immediately.

Even if a payment is only:

• Two days late

• Three days late

• Five days late

The loan administrator must:

• Be notified

• Communicate with the coach

• Communicate with the master trainer

• Contact the borrower directly

Why? Because silence trains the wrong behavior.

Borrowers Must Be Trained to Pay on Time

Steve draws on his banking experience to explain a simple truth:
If you say nothing, people will pay late every time.

This is not malicious—it’s human nature.

Loan administrators must actively work against that tendency by:

• Setting clear expectations

• Reinforcing due dates

• Following up consistently

Payment discipline doesn’t happen automatically. It is taught.

Beyond logistics, loan repayment is framed as something deeper.

Repayment is:

• An integrity issue

• Part of the borrower’s testimony

• A responsibility before God

• An obligation to God’s people

Paying on time is not just about money. It reflects character, stewardship, and faithfulness.

Steve acknowledges that missed payments are often oversights by busy people. With modern tools available, borrowers should be encouraged to:

• Automate payments

• Remove unnecessary friction

• Build systems that support faithfulness
  
  

If a missed payment reflects a deeper problem—not just an oversight—early communication is critical.

Loan administrators should not wait for issues to escalate.

Instead, they should:

• Involve the coach

• Involve the master trainer

• Involve elders, friends, or trusted advisors when appropriate

Why Borrowers Often Hide

When borrowers encounter real problems, shame often causes them to withdraw. They hide instead of asking for help.

This is exactly the opposite of what should happen.

The goal of early involvement is to:

• Reduce fear

• Rebuild trust

• Help the borrower relax

• Communicate that support is available

Most problems are fixable—if they are addressed early.

Steve emphasizes that the majority of challenges borrowers face are not fatal.

Often, the real issues include:

• Poor use of time

• Lack of discipline

• Lack of diligence

• Poor decision-making

• Pursuing the wrong paths

When collective wisdom is brought around the borrower, several things can happen:

• Accountability increases

• Direction becomes clearer

• Decisions are corrected sooner

• Resources last longer

In some cases, borrowers simply need help adapting before they run out of money.

Another key truth from the transcript:
There is almost always a creative solution.

Steve has seen this repeatedly.

Possible solutions mentioned include:

• Temporary restructuring of loan terms

• Giving a short break on a payment

• Cutting unnecessary costs

• Putting additional money into the business

• Taking a part-time job while running the business

None of these solutions work if the borrower is hiding.
They only work when the borrower remains open and accountable.

An important principle is reinforced clearly:

Borrowers commit to paying the loan back regardless of what happens to the business.

If necessary, that may mean:

• Getting a job

• Seeking help from family

• Making sacrifices to honor the commitment

This reinforces that loans are not grants.
They are a trust placed in the borrower.

Loan administrators play a central role in protecting the fund.

According to the transcript, they should regularly:

• Review the entire loan portfolio

• Identify any past-due loans

• Contact borrowers directly

• Coordinate with coaches and trainers

• Confirm that borrowers are meeting with coaches

• Confirm financial reports are being submitted

Using Loan Tools Wisely

Administrators should understand available tools for:

• Loan modification

• Restructuring when necessary

These tools should not be used immediately, but they must be available when situations require them. When administrators are unsure, they are encouraged to reach out to IBAM leadership for guidance.

Loan committees should meet at least once per quarter to:

• Review overall loan fund performance

• Discuss repayment rates

• Identify trends

• Ensure accountability

Administrators should also:

• Confirm loan balances monthly

• Maintain accurate, clean records

This level of care is not optional. It is described as a stewardship issue.

The episode closes with a critical connection:

Strong loan administration builds trust.

When loan funds are managed well:

• Credibility increases

• Trust with IBAM leadership deepens

• Donors gain confidence

• More resources become available

Money follows vision and success.
It moves away from failure.

High repayment rates allow loan funds to:

• Expand responsibly

• Repeat the process

• Create long-term sustainability

Running a loan fund well is not glamorous work. It requires discipline, communication, and persistence.

But when done correctly, it:

• Protects borrowers

• Honors commitments

• Strengthens testimony

• Fuels long-term impact

Watch the full episode here: https://youtu.be/mGjdTkKau0M

Join the mission: https://www.ibam.org

Read Series 1 here:  https://www.ibam.org/the-7ibam-loan-principles-that-protect-kingdom-capital-for-the-long-term-series1

Read Series 2 here:  https://creators.spotify.com/pod/profile/ibamtoday/episodes/EP-82-The-Process-Behind-a-Yes-at-Loan-Committee--Series-2-e3ehvri

Read Series 3 here: https://www.ibam.org/loan-committee-basics-why-this-process-protects-entrepreneurs-donors-and-the-mission