Debt collectors in Johannesburg South Africa

Debt collectors in Johannesburg South Africa are a dime a dozen, but not all are equally efficient or inspire trust as much as the top performers do.

Kredcor – debt collectors in South Africa

We at Kredcor believe we are different, that we are efficient and trustworthy, because:

  • We are registered with the Debt Collectors Council of South Africa, as is required by law
  • we were the first debt collection company to receive a letter of reference from this Council
  • we are members of ADRA, the Association of Debt Recovery Agents of South Africa
  • we collect your money into your bank account
  • Kredcor has been in existence for 14 years now
  • our collection rate success is consistently above industry average
  • our commission rate is below industry average
  • only senior personnel are employed by us, and they take care of your accounts all the way through
  • we update you monthly about our progress, more frequently should you wish

Furthermore, Kredcor also delivers the best credit reports in South Africa:

  • we deliver, where possible, our reports wuthin 48 hours
  • our credit reports only contain fresh information, all confirmed on that day
  • we include our recommendation, using our knowledge and experience
  • you get all the relevant credit risk information at your finger tips
  • you can greatly minimise your credit risk, by identifying potential unscrupulous customers in advance
  • we also assist international businesses wanting to do business in South Africa

We are confident that we can assist you right through the whole business cycle:

  • we investigate your potential customer through our credit report
  • we can perform book keeping services, watching out for potential risks
  • we collect on defaulting debtors, as soon as the red flags go up
  • we default list debtors that can not settle their debt to you
  • we can proceed with legal action where necessary

Kredcor has a good name in the debt collection industry – and we work extremely hard to keep that good name.

Contact us now, and let us prove ourselves to you.

How to collect business debt

How to collect business debt – the very first area I am going to address is cash. Simply put, many small company owners are not conscious and aren’t able to track their cash flow. They view a day-to-day basis at exactly what is in the bank, without any planning whatsoever.

The most convenient and most basic method to take care of this is using an Excel spread sheet to record exactly what money is coming in, what payments are to be made, what cheques have been composed, what outstanding monies are due in and prepare day by day. So simply put, firstly see exactly what is in the bank, where is it going and what is anticipated to come in.

It is very simple – untill you begin to determine something and track it, it isn’t really under your control.

The next issue is outstanding business debt – have you got debtors that owe your company? Exactly how long are they outstanding? Just ask yourself, what are you going to do, to get that money in?

First of all, think of how you are currently doing business and ask how do you work at present? What are your terms? Have you altered them or made them much shorter? Can you work on COD? Or for service companies, can it be prepayment upfront or possibly in many cases, can it be 50 % upfront. Whatever level of cash you can get in advance, in today’s environment, is cash in hand.

Another point we are going to discuss is collecting outstanding debts. This is everything about really chasing after the cash – the part that no one likes. This has to be done frequently and commonly. Individuals have a belief that they will lose their clients which no one will return. The truth is that these individuals have not paid you – they are not clients. Get your cash in – they understand that they owe you the cash and they understand that you deserve to telephone them and ask for the cash owed to you.

I would encourage that you utilize a script when speaking with them on the phone, so that you are brief, respectful however yet strong. For instance: when does it suit you best to come and pay – today? Or tomorrow? Friday or Monday? Pin them down to a time and day, record that time in your journal and make certain there is a follow up call set up. Establish a system, schedule in your time so that everybody is called and it is tracked routinely. If you have 50 individuals to go after, exercise the number of calls you can do in a day, track them, and jot down who stated exactly what. Have actually a particular cut off point. If it exceeds 3 or 4 telephone call, you have to go and see the individual.

Simply put – he who screams loudest has far more opportunity of collecting monies owed to them.

The real truth about ‘credit amnesty’

The real truth about ‘credit amnesty’

The much anticipated Removal of Adverse Consumer Credit Information, with implementation date of 1 April, has finally arrived. Millions of consumers across the country have eagerly awaited the day they will receive a ‘pardon’ for their credit sins and start afresh, with hopes of once again being able to access much needed
credit.

‘The Regulations that has been debated over the past year or so, has finally came into force and we will now see the real effects of removing adverse information from consumers’ profiles as well as the effect on the credit industry as a whole,’ states Credit Ombud Manie van Schalkwyk.

According to the National Credit Regulator’s Credit Bureau Monitor statistics, close to half of the recorded 21 million consumers have impaired credit records. This ranges from consumers with defaults, judgments, admin orders, as well as consumers who are three months or more in arrears with their account payments. ‘In our experience, for a big percentage of cases, consumers were not able to meet their contractual obligations because of financial problems as a result of over indebtedness. The reasons for the over indebtedness will vary from retrenchments, divorce, or other changes in personal circumstances to reckless credit. The recent rise in cost of living as a result of increases in the price of food, petrol and e-tolls costs also had a significant effect on consumer’s ability to service their debts,’ says van Schalkwyk.

What is noteworthy and what people really need to grasp is that not all of the 9.8 million consumers with impaired records will benefit from this exercise. ‘It is only about 28% of the 21 million credit active consumers, equating to about 5.78 million consumers, who may qualify to benefit from the removal of adverse information,’
adds van Schalkwyk.
Taking a closer look at the 28% of consumers who stand to benefit from the removal of adverse information, 15.4% will definitely benefit as they fall squarely within the adverse listing category which accommodates defaults, while a further 12.6% may benefit because they fall within the category of consumers who have judgments and admin orders on their credit reports. ‘The Regulations also stipulate that information relating to paid-up judgments must be removed. At present, it is difficult to ascertain how many of the 12.6% relate to judgments and how many of those judgments have been paid up, in order for the consumers to qualify to have these removed from their profiles,’ says van Schalkwyk.

In the lead up to 1 April, there have been many misconceptions regarding exactly who will benefit, what information will be removed and even when it was going to be implemented.
Below are some of the common myths regarding the Removal of Adverse Consumer Credit Information:
MYTH 1:
All negative information will be removed from my profile and I will be able to start on a clean slate.
FACT:
According to the regulation governing the Removal of Adverse Consumer Credit Information, only two categories of information qualify for removal, namely adverse listings and paid up judgments. For the purposes of these Regulations, adverse listings are classified as follows:
? Adverse classifications of consumer behaviour such as delinquent, default, slow paying, absconded and not contactable
? Adverse classifications of enforcement action taken by the credit provider such as handed over for collection or recovery, legal action or write off
? Details and results of disputes lodged by consumers, irrespective of the outcome of such disputes
? Adverse consumer credit information contained in the payment profile represented by means of any mark, symbol, sign or in any manner or form.
The adverse information reflected on consumer’s profiles as at 1 April 2014 will be removed – irrespective of whether it was paid or not.
When it comes to Judgment information – the Regulation stipulates that the capital amount owed in terms of the judgment must be paid. Paid up judgments include civil court judgment debts, including default judgements where the consumer has settled the capital amount under the judgments.
In addition to the above, consumers must note that information pertaining to the payment profile line will not be wiped away as part of the cleanup exercise. The payment profile is a recording of a consumer’s payment pattern and is recorded on a monthly basis. ‘If one is in arrears for a period of five months, as an example, that
information will remain on the payment profile and credit providers can still use this information to determine whether or not to grant credit,’ says van Schalkwyk.
MYTH 2:
All judgment information will be removed from a consumer’s records
FACT
Only paid up judgments which were taken between 2009 and 2014 (before 1 April) will be removed as part of the Removal of Adverse Consumer Credit Information exercise. Older judgments should have been removed already due to the maximum retention period of 5 years.
MYTH 3:
A credit provider cannot pursue me for the debt once the default has been removed
FACT
Even if the default information is removed from a consumers’ credit profile, they are still legally obligated to pay the debt. If this is not done, they may open themselves up for legal action by the credit provider or being handed over to debt collectors. The removal of the information does not affect the creditor’s rights in any way.
MYTH 4:
Bureaus only have 7 days after 1 April 2014 to remove information relating to paid up judgments and defaults from a consumer’s profile
FACT
Consumers need to understand that due to the enormity of this exercise it would be impossible to remove all the information overnight and that this is a process that may take time. The Credit Bureaus have until 1 June 2014 to remove all qualifying information and it is only after this period that consumers will be able to lodge
complaints if they find that the information has not been removed as it should have.
MYTH 5:
Consumers are required to follow a process before they can benefit from the ‘amnesty’
FACT
There is no process that consumers need to follow. There will be an automatic removal of all information pertaining to defaults and paid up judgments before 1 June 2014. However, consumer are urged to access their credit records after this period and to check if defaults and paid up judgments have in fact been removed.
Other facts worth noting include:
? Information pertaining to all defaults cannot be displayed as of 1 April 2014
? Once defaults have been removed a credit provider or any other collecting agency may not relist information pertaining to that default
? In the event that consumers have not paid up their judgements, the normal retention periods will apply
? Adverse information may be listed again on consumer’ profiles, relating to new defaults on other accounts

The second leg of the removal of adverse information will come into operation once the National Credit Amendment Bill is promulgated in the near future. ‘Once the bill is promulgated, consumers will on an ongoing basis have all paid up defaults and paid up judgments removed as soon as the credit providers provide the credit bureaus with proof of payment. “This will of course encourage consumers to pay their debts in order for the information to be removed from their profiles” adds van Schalkwyk.

Credit management can solve your financial crisis

Bad credit management can end in putting you into debt. This will have an unfavorable impact on your life and you will need to stop yourself from doing things that you enjoy to do. A bad monetary scenario can make it challenging for you to obtain a loan or it may even impact your work function. All this can result in bankruptcy. Lets see how credit management can solve your financial crisis.

What is there to do? Exactly how can you fix financial resources and reach a situation of steady growth? The only method to prevent such conditions is to look for assistance with your credit management initiatives. Specialist insight from such companies not only assist your instant credit and outstanding debt issues, but also reveals you a method to monetary flexibility.

Great deals of companies struggling with the monetary crunch likewise think about services of credit management in South Africa and around the globe, as the very best means to collect outstanding debts, and thus minimising their credit risk. If your business has outstanding debt, outsource the credit management work to these expert companies, and they will bring out the very best payment and management options for you. These companies offer credit management outsource services for your bad debts like spending plan and capital, business loan management, charge card financial obligation management and numerous even more scenarios.

The purpose of credit management business is to assist a company to gain back control of its financial resources, decrease financial obligations, live a much better & a more economically safeguarded and steady life. Constantly keep in mind that you are not alone, there are countless business entities like you and you need to find out a much better credit management strategy from such experience.

Credit management business not just take you from the difficult monetary circumstance, however they likewise handle some other locations. Lots of charge card business have out-sourced collection management work to these companies due to the fact that of being not able to recuperate outstanding debt from card holders themselves. The credit management business provide services like; letter prior to action, statutory need service, court procedures service and others to obtain the bad debts back from the defaulting debtor.

While working with a company to obtain assistance with bad credit management, it is required that you avail yourself of the company prior to signing the agreement. Find out if there are any consumer grievances against the company. The business needs to notify you well about your legal rights, consider your insight as well as talk about with you prior to taking any action.

There are great deals of business, which provide brand-new identification to their customers to get away from settling outstanding debts. Never ever settle on such terms.

The Matching Principle and Outstanding Debt

The matching principle and outstanding debt, plays a crucial function in assisting accounting professionals establish a clear and constant earnings statement. The total objective of the matching principle is to guarantee an exact computation of the profits in the duration where the earnings were made.

The expenditures then are followed by the profits, implying an exact computation needs to be done for this section of the earnings statement too. As an example, if we were identifying a business’s incomes during a quarter, we would have to ensure that the business’s profits were determined for that quarter, say goodbye to, no less.

We would then have to do the exact same for the costs. We would have to determine the business’s costs for those very same precise 3 months, and make sure that there were no extra months, or months that were overlooked in the computation. If there were, then earnings would mirror an incorrect quantity, because earnings amounts to earnings minus expenditures.

In short, the matching concept signifies that incomes are computed through the exact same requirements as costs, such as a duration in time. Among the only distinctions in between incomes and costs when computing the results is simply utilizing various quantities that apply to the business’s spending.

An easy method to take a look at it is every business sustains costs as well as generates income (earnings). When attempting to identify the earnings for an offered time period, we need to guarantee that we are computing both sides, incomes and costs, utilizing the exact same kind of details. You can not compare apples to oranges and anticipate to obtain a precise contrast. This is true for profits and costs. You can not compare the incomes for ABC Business from October with December and the expenditures from October and November and anticipate to obtain an exact earnings.

Another example where the matching concept enters play, aside from the bookkeeping element of incomes and expenditures, is when a financial investment management business is comparing the returns of a fund in between the very first quarter of 2009 and the very first quarter of 2010. To do this properly in order to have the ability to trend the return history, the fund managers would have to determine the returns of Fund A from January with March for 2009 and afterwards once again from January with March for 2010.

If one month was either excluded on both sides of this computation, and even if one extra month was contributed to the mix, that would shake off the whole computation and trigger an imbalance in between the 2 period that were being compared. That is why it is constantly vital to match both sides of an estimation, no matter exactly what you are comparing, to ensure the outcomes will be as exact as possible.

At the end of the day when Business ABC is determining their earnings and expenditures on their monetary statement to figure out exactly how well they constructed, many of the time they will encounter something called “bad financial obligation”. All of us understand that financial obligation is bad, however in this scenario, the duties are reversed. Rather of the business owing money and owing cash, it is its consumers who owe money to the business and owe them cash. For instance, when a company concerns charge card to its clients, prior to it even doings this, it understands that when the earnings statement is examined, there will be some imbalances in between the profits and expenditures due to those individuals who have actually not paid their costs.

The business acknowledges this and rather of putting stricter standards on the charge card certifications, they rather accept it. They do this due to the fact that they understand that the greater sales volumes from the truth that their charge card guidelines are more tolerant will surpass the bad financial obligation they sustained and they will still make a greater earnings. This is where the matching principle enters play. Although Business ABC understands that some individuals will not pay their charge card stabilizes off and they will then presume this bad financial obligation, they likewise understand that they will create greater sales since of these even more tolerant qualifications, so the business is utilizing insight to “match” their earnings with their expenditures.

Remember the people factor when collecting commercial debt

There is not a business I think, that would have entered into business if they knew it would fail. Right, here’s my point – when attempting to collect commercial debt, keep this in mind – remember the people factor when collecting commercial debt.

If a business has actually fallen back on payment, most likely there is a factor that has to be covered, a problem that has to be fixed. You’re task, to put it just, is to be the problem solver. You could be handling a debtor who is suffering a capital issue, or there might be other reasons for not paying. Is there a disparity on the expense – an unfortunate shipment of items or potentially a problem with the sales individual? Be the arbitrator; get to the bottom of the reason for non-payment.

Numerous times collectors forget the “individuals” element. Every company depends on individuals to make it work. You currently understand that business is constructed on relationships. Would it not be sensible that the very same would hold true for business of commercial debt collection?

Kredcor have actually succeeded at the collection of commercial debt, for years. I genuinely think the success originates from dealing with individuals like individuals. Some battle with this idea, and abuse their position of power by making threats, occasionally personal, in efforts to obtain payment. Bullies might be frightening to some, however reverse the roles. If you were the debtor, who would you pay very first – the bully, or the one who speaks to you like the smart entrepreneur you are?

Right, here are some things to think about when collecting outstanding debts:

oWhat is the hidden reason for non-payment?

oHow can you make the debtor feel that you appreciate the circumstance?

oHear them out- they have to inform their side of the tale.

oAlways make contact by phone. Never ever depend on letters of demand alone.

oWhen talking about payment, be reasonable. You do not wish to make unreasonable need that can possibly trigger the debtor to submit bankruptcy or close business entirely. No one wins !!

oNever, never ever lose your temper – Not just will this give the debtor the incorrect impression of your company, you have now actually offered him the position of control.

oBe firm and positive while preserving professionalism. Develop a strategy for payment prior to detaching the call.

oFinally, as the old proverb goes, you’ll get even more flies with honey than with vinegar.