It is almost impossible for a business to operate without a debt. For a business owner, it is usual to loan a product or money to a client, especially those you have transacted with for a considerable period. Should you Hire Professional Debt Collectors?
Debt collectors can help
If you offer services or products on credit, it is very likely that you will encounter a client who has an unpaid account, invoice or debt.
Many businesses today have a systematic way of recovering debts. However, there are those customers who just refuse to pay. This is where professional debt collectors come in. These professionals offer you a way to recover your money without costly litigation.
Hiring these professionals is advantageous for you and your business in a number of ways. These include:
Saves You Time
Hiring experienced and reputable debt collectors in South Africa, such as Kredcor will save you time. This is mainly because you will not have to undergo the legal procedures to recover your money. These professionals will do all the donkey work to bring your money back. As such, you can concentrate on running the business as Kredcor strives to improve cash flow in your business.
Debt Collectors Understand the Law
The expert debt recovery agents at Kredcor are experts in law, with regards to debt recovery. They use this knowledge to their advantage as they pursue the debt, hence guaranteed success. Hiring these professionals saves you the task of having to understand the legal procedures involved in debt recovery.
Saves You Money and the Stress
Basically, the legal and court procedures involved in debt recovery can be both daunting and expensive for you. Hiring professional debt collectors allows you to bypass all these court and legal procedures and still recover your money.
With years of experience in the industry, Kredcor has a team of expert and professional debt collectors using only fair debt collection practices, hence a higher chance of success in recovering your money. Hiring these professionals will ensure that you get paid fast and in an efficient manner.
If you are in business, you have to grapple with the fact not all debtors pay on time. Debt collection can be an involving affair and that is where we step in; to help collect your outstanding debt so that you can concentrate on other core business activities. Here are the reasons why you should let us collect your outstanding debt:
Get on top of your outstanding debt
We Will Work With the Prevailing Business
We understand that your business has a philosophy. Kredcor’s main aim is not to ruin the business relationship you have created with your debtors but to help you collect the money owned while maintaining a strong business relationship. Sometimes all it takes for a debtor to pay is a call or letter from a debt collection agency.
We Have the Expertise
When you seek the services of a debt collector, you are in actual fact outsourcing the process of assertively pursuing collection on overdue payments. At Kredcor, we have the expertise that goes beyond what you have in-house. This makes us better placed to collect your outstanding debt from your clients. In other words, we have the systems to optimize success.
You Only Pay for Results
Hiring a debt collector does not necessarily mean that all your debtors will pay what they owe your business. While we will do our best to ensure that everyone pays, we won’t ask for our fees until the desired results are attained. In short, we are not primarily driven by the urge to make money but customer satisfaction instead.
Your business can tumble down if your debtors take too long before paying. While you can collect the debts yourself, it is more advantageous if you hire professionals to collect your debts.
At Kredcor, we are dedicated to helping your business thrive by ensuring your debtors pay as soon as possible. We offer tailor-made services to ensure that all your needs are fully met.
Debt collectors in South Africa have developed collections models that aim at improving business to business debt recovery rate. The traditional debt collection models often lead to litigation that prevents creditors from meeting the rising needs of the commercial market. Why You Need Commercial Debt Collectors.
Kredcor can help with your outstanding debtors
The time is now ripe for your business to have its debt recovered for a low debtor risk exposure. You can undertake the process by hiring commercial debt collectors such as Kredcor, who adhere to the laws governing debt collection while doing their job.
This comes along with various benefits that include:
Commercial and corporate debt may affect the daily operations of your business. You may be tempted to spend a lot of time and money chasing the debtors to pay you. You will however avoid this hassle by hiring a commercial debt collection agency. As a result, you will have the peace of mind and time to focus on the operations of your business which is necessary for better performance.
You will act within the law
The agency has qualified professionals who act within the set rules and regulations. They will alleviate you the burden of chasing late payments as they assume the responsibility of recovering all the unpaid invoices by commercial clients from your business. This prevents possible lawsuits by debtors which may develop during the process.
You will receive your cash sooner
Outsourcing your debt collection to a specialist guarantees you that you will receive your payments faster and sooner. In additional, you will save on legal costs and stress of having recovering the debts. If your commercial client refuses to pay their debt, the specialist will connect you with reputable debt collection lawyers who will guide you on which legal action to take.
Many businesses are now undertaking the necessary measures to reduce their debtor risks. Act now by hiring Kredcor commercial debt collectors. They will collect all the outstanding debts by your corporate and commercial clients. They will also compile a verified and fresh credit information for your business which will make it easier for you to take your business to the next level.
There are only a number of people really built for collecting debts. There are certain skills required by this type of job. Read on to know what it takes to be a successful debt collector so your efforts in collecting payment from debtors will not go to waste. Lets look at the attributes of a successful debt recovery agency:
Need a helping hand with debt recovery?
The job of debt collectors is to regain the money that businesses owe to an organization, which is referred to as commercial or consumer debt. This challenging and tough task requires certain talents and skills, plus full dedication in order to achieve success. To reclaim debt, collectors need to be both patient and persistent. In addition to this, these skills must further be developed to be successful in their debt collection efforts.
Know How to Bargain
You have to know the types of bargaining chips that are effective. You have to make use of your bargaining power when collecting money from a delinquent customer. Chips, whether they are positive or negative, can be used together. You can tell customers that you can do certain favors for them in exchange for their cooperation. These may include reinstating credit terms, sustaining regular sales relations and getting release orders, among others. On the other hand, you can say that if they do not cooperate, they may have to face legal action and spoil the chance of applying for credit in the future. At times, you need to use both chips, positive and negative alike, so you can have a successful outcome.
Time Management Skills
To get optimal results, you have to learn the skill of time management. There is a limited period for dealing with some delinquent accounts. Therefore, it is critical to make the most of your time. You need time management when it comes to following up accounts. A debt collector needs to stick to work schedules to be successful in debt collections.
Reasonable and Firm
A debt collector should be reasonable and firm in all his transactions. He should be firm whenever he talks, but he should also be reasonable in his demands. Otherwise, this could make things harder for the debtor, and the collector will not be successful in his debt collection efforts.
Maintain Focus and Composure
Any wise debtor will try every means to lead a conversation into an argument and distract the collector’s attention from his intention to collect the debt. So, a collector has to maintain his focus and composure. He should not get easily agitated. He should be professional in his ways by keeping his cool and using his skills whenever dealing with any accounts.
Find Opportunities in Objections
Whenever you call delinquent debtors, do not expect to get paid right away. They usually come up with several excuses. Think positively and consider their alibis as an opportunity for getting their commitment to pay in full. Whenever an account raises any form of objection, you should tell them that the moment this is addressed, they have to pay immediately.
Skills in Research
You need to do research when tracing a number of accounts. You may have to dig different types of databases or browse the Internet. It could require you to call a debtor’s former employer or landlord. Also, you may have to visit his former residence to ask neighbors about his whereabouts.
To recover your money, you need one of the better debt recovery agencies of South Africa. Visit our website at http://www.kredcor.co.za and contact us, we can help you with your debt recovery in Johannesburg, South Africa!
A typical problem for company owners around the world is when to stop chasing bad debts in house and when to hand them over to a debt collection agency. That causes business people to ask themselves:”When should I make use of a debt recovery agency?”
Need help with outstanding debt?
On the one hand it’s alluring to hold on to your business debts in order to avoid upsetting consumers and also prevent paying collection costs as well as compensations. On the other hand the older a debt ends up being, the less likely you or anyone else are likely to collect on it.
Hence there comes a point when attempting to collect outstanding debt yourself, will cost you more than acquiring the services of a debt collector.
The age-old question then is, “Exactly how do I know when to refer an outstanding debt to a debt recovery agency?”.
Now while it would certainly be nice to offer you an exact period of time the fact is this relies on both an individual debtor and also on your business.
Thus, the best way to identify this limit is with a tested vibrant system.
Such a system should at the same time perform two vital activities:
Firstly, this system must enable you to recover cash from your excellent customers swiftly and agreeably to ensure that you can increase your cashflow without upsetting excellent customers.
Secondly, as well as equally as significantly, this system must accurately identify scoundrels early to make sure that you could refer these debts while they’re still recoverable. And also as debts come to be more difficult to recuperate the older they become, by referring early you’ll massively enhance your opportunities of full and speedy recovery.
So Exactly what Does This System Look Like?
Fundamentally it includes a simple yet powerful 3 step procedure:
Step 1. Friendly Reminder: To start with, once an account falls overdue you must send them a purposefully crafted Collection Pointer Letter.
Step 2. Courteous Push: Should your debtor fail to either resolve this account or conversely commit to a payment program within 7 days of receiving your pointer letter then you have to call them on the phone.
Step 3. Considerate Ultimatum: If they subsequently continue to evade settlement or alternatively they default a repayment installment then you send them a Last Demand Letter.
If after this 2nd letter the debtor still overlooks the account then that’s all the proof you need that you’re now handling a person that has neither any sort of morals nor any sort of purpose to pay. At this point there’s absolutely nothing more for you to do apart from passing this outstanding debt to an expert debt collection agency quickly!
Now if you’re old school and habitually send out a collection of of reminder letters, this rapid-fire 3 action system possibly appears heretical.
However, the reality is these three interactions are all any great client needs to settle their account. Every one else presents a clear and significant risk to your company.
And also if they’re a risk to your company, chances are they’re additionally a risk to dozens of other companies. I.e. if they’re having problems paying you then it’s a safe bet they’ve obtained a boodle of some others financial institutions they aren’t paying either.
What’s more, if these lenders are like a lot of businesses, they lack any type of system to promptly identify and also subsequently deal with professional debtors. So while those businesses continue to sit on their behinds and also drag their heels, you’re taking early as well as persuasive action.
And in a classic case of the squeaky wheel gets the oil, considering that you’re the first one to put the heat on your debtors, you’ll be the very first one they’ll pay.
But much more notably, due to the fact that you’re the first in line to get paid, the chances they’ll have the methods to settle your debt are definitely higher than if you were the last level … when exactly what little funds they could have had have all been spent paying everyone else.
Base Line: following this formula at the proposed times will significantly enhance the number and also speed at which you recuperate your financial obligations. It all boils down to the irrefutable fact of bad debts … the longer you remain on your debts, the more money you’ll lose. Alternatively, the faster you recuperate your debts the more money you’ll pocket.
Businesses in Cape Town can now look forward to receiving outstanding service from Kredcor, served locally. Johan Louw is in charge, and he will ensure that Kredcor clients receive proper credit management service, as has been happening in Johannesburg for 15 years now.
How will we help businesses in Cape Town?
collection of overdue accounts
default listing, tracing and legal action as well
compilation of fresh, verified credit reports
bookkeeping services, all the way up to, and including, the services of a CA
assistance with all matters related to SARS (personal and business tax)
So, if you have branches in Cape Town, let them make contact with Johan and lets get the ball rolling! That goes for your friends and colleagues as well.
To help you decide to make use of our services, please see our Testimonials page, or see why we think you should make use of our services or see our Contact page, if you want to speak to somebody.
If you wish to recover more of your outstanding debt, simply read on about effective debt collection. Lots of invoices specialists and individuals who gather debt from overdue accounts talk way too much.
In training individuals to enhance their collection strategies, I have actually observed that collectors, while on the phone or conference with debtors in person, usually do the majority of the talking, while the debtor is not listening. The outcome is the collector does not make money.
Among the essential concepts of collection management is to get debtors to discuss their accounts. When debtors are discussing their financial obligations you are well en route to gathering the debt.
So exactly how do we get our debtors to talk? The main point we need to do is to stop making statements and begin asking questions. And, in the broadest sense, there are 2 type of questions we can ask: closed-ended questions and open-ended questions.
Naturally, a closed-ended question is one the debtor can respond to with an “indeed or a “no.” For instance, if you ask, “Will you send me a check today?”, the debtor can state, “Yep.” “Nope.” “Not in your life.” There is no talking needed.
On the other hand, an open-ended question is one phrased so the debtor is virtually required to talk. As an example, “Can you inform me exactly what’s going on with this account?” Or, if it’s a little industrial account, “Exactly how’s your company doing?”.
Or, if you understand something about the consumer, which I wish you do, “Exactly how’s that equipment doing that broke down last month and triggered you some manufacturing troubles, is it working yet?” Or, “Exactly how’s your child doing that was in the medical facility last month?”.
Below’s one that I picked up from Stephen Covey, the author of The 7 Routines of Highly Effective Individuals. When they reveal some disappointment, which they typically do, ask “You appear a little aggravated with this, are you?”.
Those sort of open-ended questions will get your debtor to go over the account. And when you have them doing it you are on your way to gathering the cash. It resembles a tennis match. While you’re talking, the benefit is on the debtor’s end. However while your debtor is talking, the benefit is on your end.
So right here is exactly what I suggest. Throughout your preparation stage, prior to you get the phone to call your debtors or meet them in person, jot down some open-ended questions, ahead of time, customized for them that you believe will get them to discuss their outtsanding debts.
The very best collectors I have ever seen at gathering outstanding debt, hardly say anything. All they do is ask open-ended questions, created to obtain the debtor to go over the account. And by the sort of questions they ask they have a ways to carefully take their debtors where they desire them to go.
And if I can pick one ability that I assume is more crucial than all the other abilities to do business of collecting debt well, I would select listening abilities. The very best I have actually ever seen do not do much talking, however they do a great deal of listening.
So keep in mind if you wish to make money you’re willing to need to get debtors to discuss their financial obligations. And the very best ways to do that is to ask open-ended questions customized for that specific debtor. By doing this, you’re talking as little as possible and the debtor is talking as much as possible. And the outcome is that you make money, on time.
You could also consider using Kredcor to do your debt collection, we are very good at this!