How to cash in your delinquent accounts?

Why Businesses Should Know about the Statutes of Limitations in the Gulf Region
23rd March 2014
“With a string of hair you may pull a mountain.”
27th May 2014
Show all

How to cash in your delinquent accounts?

Image By Jawad M. Faraj

Director – Operations & Legal Affairs

Al- Nabaa Commercial Services (NCS MENA)

 

At NCS MENA we believe that we are an active participator to a healthy economy.

How? By achieving what most businesses define as impossible, we make possible; we put irrecoverable money back into our client’s bottom line and therefore helps the overall economy. As once said, “revenue is vanity, cash flow is sanity”. So, we all agree that cash flow is heart of any business and an important element to the growth of a healthy economy.

Having delinquent accounts is a major cost and getting it recovered just adds to this cost. Therefore, without immediate action of these delinquent accounts the aging of these stagnant accounts will lead to having irrecoverable debts which is a real concern for any business. This is where debt collection agencies like NCS MENA come into the picture, allowing businesses to outsource the delinquent accounts which in turn will safeguard the business’ bottom line and create a positive impact on the cash flow of the business.

Regardless of the size of your business, there will always be occasions were customers are not paying on time or not paying at all. These instances immediately affect your cash flow, balance sheet and therefore your business bottom line.

STILL NOT CONVINCED WHY YOU SHOULD OUTSOURCE YOUR DELINQUENT ACCOUNTS?

NCS MENA has always taken pride in being part of our client’s credit and collection department. Taking a closer look on how we have positively affected our client’s business we have been able to draw up the following facts highlighting the importance of outsourcing your delinquent accounts to us:

1. Allows businesses to focus on their main area of activity

When more focus is given to collect unpaid debts, it may alter the focal point of the businesses core activities and then in turn will affect the sales projection, decreasing revenue and leading to possible hindrance in the relations with client.

This is why we do exist.

2. Immense improvement to the business cash flow

NCS MENA takes great steps to advice and recommend to our clients on an on-going basis about the importance of outsourcing delinquent accounts at the earliest stage. Having NCS MENA as an extension to your business will significantly accelerate the return of collection at reduced cost and time.

What most businesses don’t detect is that the earlier the stage of overdue accounts the more recoverable the debt is, because the debt is still at the primary stage of the collection process and only soft approaches are required. Lack of time and experience in primary stage contributes to the debt becoming aged and crossing over to a mid-range stage which will have a lesser opportunity for recovery as the debts require more time and dedicated efforts. Normally during this stage businesses consider writing off accounts as the chance of recovery is fairly low. This is why NCS MENA has continuously been raising awareness of the perfect time to outsource your delinquent accounts.

3. Dedication and professionalism on portfolio management

All well established and professional debt collection agencies like NCS MENA emphasize the significance of having a dedicated team for the different type of case portfolios.  We have continuously been developing the working mechanisms on portfolio management level through the “know-how “ concept that links all related factors and elements with our stakeholders.

4. Enforces streamlining of credit policies

Business continuity is the heart of any business and in any organization, the Sales Department looks after sales. The Credit Department ensures restrictions are in place to limit and control the sales horizon. NCS MENA, besides carrying our debt collection services continuously inform our clients about the benefits and risks of improving and updating their credit policies. Stricter polices limit the risky areas that have direct impact to the businesses bottom line.

5. Accurate, prompt and precise dealings

At NCS MENA we consider ourselves a strategic partner of our client. In order to maintain a long term relationship with our clients and maximize our results, NCS MENA follows a carefully drawn methodology which assists our team to carry out all their responsibilities with accurate, prompt and precise dealings.

6. Bilingual and experienced team

Clear Communication is a vital factor to conduct business. Beside the importance of having resources, skills and knowledge, another element that adds to our recipe for success is that all our employees are bilingual allowing smooth communication and dealings with clients, debtors and overall stakeholders.

7. Specialized tools and resources

The only definition for collection known to NCS MENA is “Follow-up, follow-up, follow-up”.

NCS MENA empowered by a dedicated team and specialized resources are capable to handle collections stressing the importance of outsourcing your business delinquent accounts.

To trigger the rein towards performance we use the appropriate tools and resources being acquainted with the 6 “Ws” – “who, what, where, when, why and how”

8. Payment ONLY upon successful recovery of delinquent accounts

At NCS MENA we visualize equality and fairness in all our dealings. Therefore we operate on a strict no collection, no fee basis.

WHEN IS THE RIGHT TIME TO PASS ON YOUR DELINQUENT ACCOUNTS TO A PROFESSIONAL COLLECTION AGENCY?

At NCS MENA we strive to encourage and raise awareness to our clients about the benefits of entrusting us with their cases at an earlier stage, however we recommend  outsourcing of delinquent accounts when they fit one of the below descriptions:

– 90 days + delinquent accounts

– Write off accounts

– Litigation recommended accounts

– Untraceable  / non contactable

– Filed visits required accounts

– Disputed accounts

When assigning us your delinquent accounts and we collect for you means you have made a sound strategic decision.  We are both successful. For this reason we at NCS MENA see our business as part of our client’s credit and collection department.