debt collection

DEBT COLLECTION
DEBT COLLECTION
LIQUIDITY INCREASE AND CASH FLOW
IMPROVEMENT
The large volume of receivables is a major
pressure on the liquidities of companies.
Coface debt collection services provide
professional support for their recovery,
based on our experience as reliable partners
of local and international creditors and
debtors.
Coface collection specialists have in-depth
knowledge on the Romanian and global
business environment, and understand very
well the economic factors that influence
the payment behavior of companies.
The technical support for the collection
procedure is ensured by DCON,
the online collection software for
receivables collection and by ICON, the
only online database which contains
information on companies.
Don’t forget:
time is money.
Benjamin Franklin
IN ROMANIA, MONEY
IS PREVENTED TO
CIRCULATE HALF THE
YEAR!
ƒƒ Invoice due dates are 14-45 days after issuance
ƒƒ P
ayment delay average is 80-160
days
ƒƒ A
ctual payment is made at
180-210 days
ƒƒ T
he weight of overdue
transactions is 85%
ƒƒ T
he average collection rate for outsourced
receivables related to the number of days of delay
is:
ƒƒ In general, payments are made quicker for international suppliers
yy 75% for receivables up to 30 days
ƒƒ T
he biggest risk for late payment
is recorded in: Construction,
Distribution, Agriculture,
Transport, Metallurgy and
services for enterprises.
yy 50% for receivables between 90 and 120 days
yy 60% for receivables between 30 and 90 days
yy 35% for receivables between 120 and 180 days
yy 15% for receivables over 365 days
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DEBT COLLECTION
JURIDICAL PERSONS
WHAT DOES COFACE
DEBT COLLECTION FROM
LEGAL ENTITIES COSIST
OF?
ƒƒ P
erformance of procedures that
track the cash-in of the overdue
invoices.
ƒƒ The process has 2 stages:
AMIABLY DEBT
COLLECTION
ƒƒ Exclusive procedures:
yy Amiable and negotiation
yy M
ediation for recovering
and solving every debt
ƒƒ P
re-legal solution (outside
court)
ƒƒ Commercial approach of every case
ƒƒ Duration of 3 months
ƒƒ International recovery
ƒƒ “No collection – No fee” – payment is made only for success (for domestic cases)
COLLECTING
RECEIVABLES BY LEGAL
PROCEDURES
ƒƒ Investing Promissory Notes and Checks with enforcement formula
WHAT ARE YOUR BENEFITS?
Following the outsourcing of overdue receivables
to Coface, we:
ƒƒ Increase your liquidities and improve your cash flow.
ƒƒ Recover the debts you consider lost.
ƒƒ Provide a high degree of recovery for viable receivables.
ƒƒ S
ave your time, financial and human resources
and ensure that you can focus on activities of
growth and development for your company.
ƒƒ P
rovide various methods for amiably solving/
recovering debts, by setting up securities,
compensations and taking over receivables in
against debts.
WHY CHOOSE COFACE FOR
CONSULTANCY IN CREDIT RISK
MANAGEMENT?
ƒƒ C
oface consultancy services are created in
order to analyze current systems and identify
opportunities for improving processes and
reducing costs.
ƒƒ W
e use the ICON database and information
provided by teams specialized in collection,
resulting correct advice on an optimal payment
behavior which can lead to the increase of
liquidities and a better evaluation of your
company.
ƒƒ We provide a field team for identifying the debtors that have changed their registered offices and recovering their debts.
ƒƒ W
e allocate a team of professionals which will
fully deal with your debts.
ƒƒ A
ctions based on the law
86/2006 on bankruptcy and
legal reorganization
ƒƒ We provide the possibility of having debt collection services for high volumes and small amounts (B2C).
ƒƒ Common-law commercial
actions for recovering the debts
ƒƒ Your debtors will be analyzed. We provide the possibility of closing credit limits for the parties that are in Coface exposure.
ƒƒ
Obtaining final judgments pronounced by the court that concern the small claims and the procedure of payment order
ƒƒ We provide access to a database with all Romanian companies, providing information on insolvencies, payment incidents and payment history.
ƒƒ E
nforcement of debtor’s estate
by the network of legal enforcers
/ 02
DEBT COLLECTION
JURIDICAL PERSONS
ƒƒ
We facilitate access to applications developed by Coface to obtain data from official sources regarding the legal status of debtors.
ƒƒ We offer a professional approach of debtors in order to keep and develop your business relations with them.
8 REASONS FOR USING COFACE DEBT COLLECTION SERVICES FROM LEGAL
ENTITIES
ƒƒ Debt collection in a short period of time without direct costs
ƒƒ Control and monitoring of collection procedures
ƒƒ Low prices just about collection fee
ƒƒ F
ast and efficient decisions on the procedures used for collecting debts. This is
possible due to the information we own on debtors (from credit reports - ICON),
useful for our legal advisors and attorneys
ƒƒ O
ur 16 years of experience in Romania in this service and a complex database –
DCON, with over 500,000 registered collection cases
ƒƒ O
ur access to a network of enforcers and legal liquidators, and the possibility to
obtain better prices for our customers, faster services and a better quality
ƒƒ More complex credit reports, fast collection of debts, efficient credit insurance, due to the information flow from the three services that help improve their efficiency
ƒƒ C
ommon database for the three types of services (Coface is the only company in
the world that provides complete commercial credit risk management solutions),
and the information obtained for any of them circulates from one service to
another
/ 03
DEBT COLLECTION
NATURAL PERSONS
WHAT DOES COFACE
DEBT COLLECTION FROM
INDIVIDUALS COSIST OF?
ƒƒ S
treet collection – visiting debtors at their
addresses
ƒƒ Performance of procedures that track the cash-in of the overdue invoices
ƒƒ Duration of 3 months
ƒƒ The process has 2 stages:
AMIABLY DEBT
COLLECTION
ƒƒ Exclusive procedures:
yy Amiable and negotiation
yy Sending notifications
yy Sending text messages
yy Telephone contact
campaigns
ƒƒ Pre-legal solution (outside court)
ƒƒ “No collection – No fee” – payment is made only for success
COLLECTING RECEIVABLES BY LEGAL
PROCEDURES
ƒƒ O
btaining final judgments pronounced by the
court that concern the small claims and the
procedure of payment order
ƒƒ E
nforcement of executive orders (credit
contracts, judgments enforceable vested, leasing
contracts)
ƒƒ Enforcement of debtor’s estate by the network of legal enforcers
yy M
ediation for recovering and
solving every debt
yy
Skip tracing for identifying the identity of debtors (finding out new addresses and phone numbers)
8 REASONS FOR USING COFACE DEBT COLLECTION SERVICES FROM INDIVIDUALS
ƒƒ Debt collection in a short period of time without direct costs
ƒƒ Control and monitoring of collection procedures
ƒƒ Low prices just about collection fee
ƒƒ F
ast and efficient decisions on the procedures used for collecting debts: you
receive periodically customized reports (daily, weekly and monthly) regarding the
status of your portfolio and further information on debtors
ƒƒ O
ur 16 years of experience in Romania in this service and a complex database –
DCON, which includes debts form the industries: banking, telecom, leasing, IFN,
insurance and utilities
ƒƒ O
ur access to a network of enforcers and legal liquidators, and the possibility to
obtain better prices for our customers, faster services and a better quality
ƒƒ P
erforming system for automatic dialing of debtors - predictive dialing and
approaching debtors on call-codes
ƒƒ Integration of Street Collection in the collection work-flow
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For further information:
T. +40/21/231 60 20
www.coface.ro