7 June 2022
Credit control is one of the most important factors for a successful business. A healthy cashflow allows you to plan ahead and gives you liquidity to make necessary investments to see your business grow. Letting the list of your debtors grow hinders such growth because it limits such liquidity.
While engaging new clients may certainly be the sign of growth, the process of effective credit control should start at the very start of any business relationship. It is very important to know your clients before entering into new business relationships. Before accepting orders, one should inquire about their credit reputation. The process of credit control likewise ends when you get paid by your client.
Most persons in business will agree that when overdue invoices are left to age, it is more difficult to recover payment for them. Your human resources’ time costs you money and debilitates your business further. This waste of time also shifts the focus from your real objectives and cost your further losses.
Using the services of a Debt Recovery specialist can offer you peace of mind since you know that you have placed yourself in the hands of experts in the matter. The first advantage is regaining time which you would have otherwise wasted when chasing your debtors yourself. Your success rate in recovering any money due to you is also increased since most debtors respond faster to the solicitation of competent authorities and agencies.
At Advisory 21, we offer debt recovery services. Unlike most other debt recovery agencies, we prefer not to use inhibition through legal ways but we prefer a more subtle yet effective way of negotiation. We are committed to be as cost effective as possible, therefore we try our very best to avoid things escalating into legal action. We do this through a polite and persuasive manner of operation, carefully managed by our experienced and competent team of specialists. We also make sure that whenever possible long lasting business relationships are maintained by working out efficient repayment models and keeping communication alive and decent. Of course we also offer the harder legal approach with the help of professionals but we always keep that as a last gasp method.
Since we brought up the argument of cost effectiveness, it is fair that we let you know that we operate on success story terms. In plain words, if we do not manage to recover your money, you pay nothing. We typically charge a flat 8% on monies recovered. You will not only pay this for our dialogue and negotiating services but also for the various facilities we offer to you and your clients such as the possibility of paying overdue invoices easily through our portal and your ability to check your balances with us from the comfort of your office. Dialogue and compromise obviously keep costs at minimum levels compared to potentially costly legal procedures. What makes our efforts successful is the sheer volume of work and attention we dedicate to collect your money rather than bullying your clients through court action.
Our reasons for believing in our ‘polite’ approach relies mainly on our dedication and resilience in chasing your debtors. Most of your clients will move payments just for being contacted by a debt collection agency.
More importantly we make the effort to understand reasons for immediate insolvency and we work with your debtors to find the right repayment solution which primarily works for you and also for them. This helps so that long lasting business relationships are not tarnished. We also believe that most businesses have liquidity problems just like you have through their trade patterns. Most times the difficulty is temporary and therefore negotiating payments over a reasonable period of time is usually the best solution. As already mentioned, unfortunately we have to resort to legal action in the most difficult of cases. In cases where this is necessary we will offer you the right guidance keeping in mind however that even a favourable court or tribunal judgement does not necessarily guarantee payment.
We have already mentioned that we charge our fees subject to successfully recovering your money. We must however let you know that we do charge a small feefor initial expenses depending on the age of the invoice and the location of the debtor.
It is important to note that some debtors may owe monies to other businesses and therefore we need to research and ascertain the financial status of each, case by case.
In case of things going further and involving legal proceedings, costs will be assessed case by case with fees depending on the clarity and length of proceedings involved.
If you have any further queries or should you want to discuss possibilities further please contact us on info@advisory21.com.mt or +356 20995486.