Experts in Debt-Recovery.
Specialist Advisors on Credit and Distressed Debt

Collections & Recovery | Outsourced Debtor Department with Automated Client Data Interface

In June 2009, we launched a solution for businesses wishing to outsource their entire debtor management function. This solution was designed to be suitable for clients whose revenues comprise high volume monthly receipts (such as debit order subscriptions), and experience a high incidence of non-payment.

The client that initially brought about the demand for this service was a prominent sporting institution with high volumes of monthly subscription receipts of relatively low value (+/- R350 on average). The subscriptions were received by debit order, and a high incidence of debit order rejections was being experienced, thus resulting in loss of revenue.

To facilitate real-time exchange of data, we set up 2 interfaces:

An interface between our client’s accounting system and our debtor management system, whereby our client’s debtor accounts are automatically transferred onto our system immediately after debit order rejections take place and the accounts go into arrears. In this way, we are able to commence work on the debtor accounts as soon as they go into arrears, which we have demonstrated to be substantially more effective than if there is a delay in handover;
An interface between our debtor management system and our client’s CRM system, whereby the notes that we made on each debtor account are automatically transferred on to our client’s CRM system. In this way, if a debtor contacts our client directly, then our client can reference the notes that we made when talking to the debtor, and be in possession of a complete communication trail.

The systems were seamlessly automated and integrated with a daily exchange of information taking place outside of business hours so as not to interfere with business activities.

Due to the nature of the assignment, we were mandated to contact the debtors in the name of our client, not in the name of Debt-IN. The client therefore entrusted us with their brand and reputation, to a greater extent than is normally the case when we contact debtors in the name of Debt-IN.

The following benefits to our client were realized from the assignment:

  • Vastly improved collection rates on arrear accounts;
  • Cost savings as a result of reduced staff complement and lower telephone bills;
  • Timely resolution of queries, driven and managed by us;
  • Net result after payment of Debt-IN fee was a substantial cost saving.

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