2. With a combination of late payers
and non-payers your days sales
outstanding can increase
significantly if not managed.
The best option for your company is
to focus on your front end credit
control, bringing money in on term
and chasing aging debt early on.
Putting the right credit control
processes in place means you and
your team stand a greater chance of
being paid on time whilst mitigating
the risk for high levels of bad debt.
However, at times, no matter how
efficient your processes are and how
hard you chase an invoice, it will
become a bad debt. Pursuing the
debtor for payment often becomes
times consuming, frustrating and
stressful as the chance of recovery
reduces over time. We know that the
longer a debt is uncollected the
higher the probability it won’t be.
This happens for a number of
reasons, including company
insolvency, inability to trace the
debtor, debtor cash flow problems
and debtors who just won’t pay.
“With a combination of late payers
and non-payers your days sales
outstanding can increase
significantly if not managed”
Continuing to chase a single debtor
or multiple debtors without the
internal resource to allocate can shift
the balance from an efficient front
end focus to a reactive, inefficient
working environment. This can result
in companies feeling a lack of control
with a reduced focus on collecting
invoices on term. In a reactive
situation like this urgency is placed
on collecting bad debt. Unknowingly,
the focus is shifted and the balance
on credit management is tilted.
When the balance is not restored the
effects on your ledger can be
significant , with rising days sales
outstanding and a reduction in cash
flow affecting business continuity
and potential growth.
At this point it is important to assess
where to efficiently and effectively
allocate the resource you have, to
continue with a strong front end
credit control process . Either
allocate set time or staff to deal with
bad debtors or look to use a third
party. Using a third party can reduce
the stress on your team and the
business in dealing with bad debtors,
whilst proving a cost effective and
efficient methodology to improve
cash flow.
3. 1. Check your system for any accounts
receivable that are due
2. Check if either the amount is
substantial or the bulk is substantial
3. Determine if the clients are
trustworthy based upon the
payment history
4. Execute a credit worthiness check
5. Check if you took all necessary
actions to collect (reminder, calls,
emails)
6. Check if your financial department
has time left to collect
7. Set-up an overview sheet to
determine the level of debt, the age
of debt and the damage it is
potentially doing to the business
If the answer to these checks leaves
you concerned about an account or
indeed a ledger it is time to begin
collections. Doing so will considerably
improve the odds of a successful
recovery.
Conclusion;
If the bad debt on your ledger is
increasing, the sooner you take action
the better, don’t hesitate too long! (If
you want a double check feel free to
contact us and we are happy to advise
you).
Keep your collection costs low
Focus on bringing your invoices in on
term and your dunning process for
those which go over term. Once your
internal processes have been
exhausted, don’t wait, pass it onto us
to aid recovery. Through working with
us and taking action at the right point
in your credit control process, you will
see a substantial increase in success
rates on debts collected, whilst your
costs will remain low.
Cash or Risk
Beginning collections now, can
improve the odds of success
considerably. Moreover, collections
require follow-up. Assigning
delinquent accounts to specific staff
members can help ensure continuity
and regular follow-ups.
While the old saying “it’s better to give than
to receive” might apply to many situations,
it certainly isn’t true when overdue invoices
and bad debt are starving your business of
vital funds.
When is it time to introduce a third party collection agency?
4. Relationships based on understanding
our customers’ unique challenges and
providing solutions that achieve
results.
What are the options?
• One-off debt placement
• Clean-up exercises
• Repetitive placements
• Integrated solutions
• First party collections
• Legal services
• Insolvency services
• Fire & Forget letters
• Pre-legal ‘amicable’ recovery
• Insolvency claiming and
monitoring
• Access to our International Debt
Collection Handbook, country
reports, sector reports and our
internal experts
• Use of our integrated global
online platform for monitoring,
reviewing and corresponding
with us on cases
• Scalable, flexible and tailored
solutions to suit the needs of our
customers
How do you help?
We are customer centric and focus
on the needs of your business.
Although no business is the same, a
lack of cash flow due to increasing
debtors has the same detrimental
effects on all. We work with you to
understand your business, your
customers and the solutions to best
fit your need. This can range from
one-off debt placement to
outsourcing your whole credit
control process if required.
What results can I expect?
• More control of your front end
processes
• More efficient internal collections
• Increased chances of recovery on
aged debt
• Provisions becoming cash flow
• Improved front end credit control
efficiencies
• Reducing Days Sales Outstanding
• No cost increases associated with
a rising head count.
• Less stressed and more motivated
staff
• Access to review cases and
correspond with us online 24/7
5. We provide solutions to support the needs of our customers.
* Where we do not have our own collectors in a country of a debtor recovery action is carried out from our Belgium office. We may
also use trusted partners to support recovery action in some countries.
ReduceDebts
Secure payments
Improve cash flow
Dedicated Customer Service Representatives
One global online platform to monitor, review and upload debts 24/7
Simplicity: One partner for all your collections needs
* Collections carried out in the country and language of the debtor
Access to 100 million companies information globally
No hidden costs
One-off placement through to outsourced collections
Insured and uninsured collections provision
22 offices worldwide recovering in over 200 countries
6. Australia 60.71%
Austria 63.91%
Belgium 88.07%
Brazil 68.36%
Chile 53.26%
China 36.06%
Czech Republic 66.40%
Denmark 73.61%
Finland 81.79%
France 70.96%
Germany 66.77%
Hong Kong 33.28%
Country Success rate Country
India
Luxembourg
Mexico
Netherland
Poland
Russia
South Africa
Sweden
Tunisia
Turkey
United Kingdom
USA
Success rate
46.69%
72.23%
49.02%
90.86%
60.23%
12.48%
42.24%
76.52%
71.89%
52.36%
58.79%
43.65%
If you would like more information on a specific country, including countries not in this list either visit our website
www.atradiuscollections.com or call us on 029 2082 4700.
Success rates 2013
7. Top Tips for prompt payment
One:
Set your terms and conditions of
trade in stone. Include a clear
statement of interest charged on
overdue accounts and retention of
title terms for unpaid goods. Ideally,
get the purchaser to sign them with
their order.
Two:
Invoice correctly and efficiently.
Ensure the pay-by date is clear.
Three:
Keep constant watch for warning
signs like slipping payments,
round-number or unsigned cheques.
Four:
Depending on the amount in
question, follow up three days after
posting your invoice. Say that you are
checking the customer is happy with
the product or service. Assuming
they are, you then confirm whether
they have received the invoice and
passed it for payment.
Five:
The day the invoice becomes
overdue, ring up and politely ask if
there is a problem. If no problem the
only excuse for non-payment is no
money. Everything else is make-
believe. So be polite, but persistent.
Point out that interest is now
accruing on the invoice.
Six:
Keep notes of every conversation
you have from now on and
immediately fax/scan the customer a
summary after each call.
Seven:
If they say they will put the cheque in
the post, ask them to post it first
class and allow three days before
calling again.
Eight:
Next time they promise to post a
cheque, ask them to fax/scan a copy
of the signed cheque to you. Then at
least you know they have written it
and intend to pay. Alternatively ask
them for the cheque number.
Nine:
If the company is local, phone in the
morning and say you will be in
reception at a specific time to collect
a cheque in the afternoon.
Be prepared to sit some time if
necessary.
Ten:
If they are too far away to visit,
stating the facts only, draw attention
to your terms and conditions of trade
and itemise each call you have made
chasing payment. Enclose copies of
your faxes and emails confirming
these conversations. Say that you
can no longer supply them and point
out that if you have not received a
letter within seven days, you will
have to take legal action.
Be prepared to keep your word.
8. Atradius Collections United Kingdom
3 Harbour Drive, Capital Waterside
Cardiff Bay CF10 4WZ
Tel: + 44 (0)29 2082 4700
www.atradiuscollections.com
