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Risk Advisor - RMAS Newsletter

3rd March 2011

Risk Advisor 03/11Debt Recovery, Credit Management System and Credit Insurance

 

What's in this month's newsletter?

 

 

 

Collecting the Money?

We have done the work, supplied the goods, now how about getting paid?

 

This month we are focussing on one of the most important aspects of business, collecting the money.

Being paid by customers is an increasing challenge faced by most small businesses that supply goods or services on credit. Today a business can invest as much time in chasing overdue debts as they do in marketing and sales. It’s frustrating, it eats into your valuable time and it’s an activity that does not add value to your business.

 

We are therefore focussing this issue of Risk Advisor on debt collection and credit management .

 

Introducing our latest great service

Direct Route Collections – your commercial debt recovery service

 

Publishing... construction... trade associations... electrical wholesale... hardware suppliers... plant hire and construction... internet security... flooring... car parts... accountancy... recruitment – these are just a small selection of the types of businesses that choose Direct Route to recover their debts.

 

. . and size is no barrier

Clients of Direct Route range from one-man band sole traders through to partnerships, limited companies and PLCs. They act for some of the most well-known blue-chip business brands in the UK and a number of trade associations that recognise the added value offered to their members through Direct Routes services. What unites clients is their need for a tenacious, experienced debt recovery specialist – a professional and respected organisation with an excellent track record for securing the payment of their outstanding debts.

 

The Direct Route people make the difference to your results

The answer to why we have such an outstanding rate of debt recovery and a high client retention rate lies in the strength of our team. At director level, we have over 50 years’ of combined experience in commercial debt recovery. At account management level, the team has over 30 years’ combined experience in debt recovery. What this means is that you benefit from continuity. You are given a hugely experienced and dedicated account manager who will be responsible for pursuing your outstanding debts. Through a combination of experience and training your account manager knows how to build a relationship with your debtor so that your debts are settled ahead of other creditors.

 

You can track the progress of your debt at any time on a password protected website. This is useful if you need to keep team members informed or you have to communicate progress on a regular basis for example to Board members. You can also request a full report detailing your account manager’s activity in pursuing your debt. This can be specific or detailed focussing on for example collection activity in a 7 day cycle. This is supplied at no charge. We always update you by telephone or e-mail if a significant matter arises – for example, when payment of your debt is secured or if the debtor wants to discuss paying the outstanding amount by instalments.

 

Please contact us...

Choosing a commercial debt recovery partner is an important decision that ideally you should only make once. We appreciate that you may have questions about our service and indeed your debts that you would like to discuss with a member of our team. Please don’t hesitate to contact us.

 

Did you know that -

It takes Direct Route an average of just 33 days to recover outstanding debts. 70% of debts are collected without the need for further legal action. We are delighted to bring this important service to you. If you have a debt and would like help call RMAS on 084 321 81 673 or email RMAS.

 

. . and it may be at zero cost to you . . ! !

Yes zero cost debt collection with Fairway Debt Recovery

On debts of £3,000.00 or less
Under the Fairway Debt Recovery facility Direct Route take the late payment costs as their fees. What this means is that you receive the full debt value and you do not pay us or Direct Route any fees whatsoever. You have benefited from what is known as zero cost debt collection.

 

On debts of £3000.01 or more
Direct Route take the late payment costs as their fees however they also charge you a subsidised commission of just 2% of any monies recovered. You have benefited from debt collection that has only cost 2% of the recovered monies.

 

You always retain full control so if you decide to withdraw from pursuing a debt via Direct Route Collections at any time you may do so. Occasionally, a client may do this because of a change in the relationship they have with their debtor. If you do so, fees will be payable on any monies that we have recovered. These will be charged in accordance with the late payment costs

 

Alternatively you may wish to take advantage of our “Letters Before Action” service before you utilise the Fairway Debt Recovery Service. This gives your debtor an opportunity to pay the amount owed to you without incurring late payment fees. It costs just £3 plus vat for each Letter Before Action.

Please ask for further details if you are interested in this service.

 

Like many of our clients, you may choose to utilise the Fairway Debt Recovery Service for some of your debtors, whilst opting for the Commission Based Debt Recovery Service for other debtors. It will ultimately depend on the relationship that you have with each one of your debtors and the nature of the outstanding debt. Please don’t hesitate to ask for guidance.

 

Direct Route Collections can also organise legal action should this become necessary. We would need your written confirmation in order to issue legal proceedings. Whilst you are responsible for paying legal fees, some elements are recoverable from the debtor.

 

Did you know that –

Using the Direct Route system we can collect debts from as little as £1.00

We are delighted to bring this important service to you. If you have a debt and would like help call RMAS on 084 321 81 673 or email RMAS

 

On-Line Credit Management System

Credit Control online systemDo you want to reduce the odds of having debts to chase . . ?

It has never been more important to check out and monitor customers both old and new. Knowing the current financial status and exactly who you are dealing with is paramount to successful trading.

 

Your Solution...
AccountAssyst has been developed by a team of entrepreneurs including the internationally renowned insolvency practitioner Gerald Krasner. It’s an incredibly powerful, easy-to-use online credit management system that has been designed for small businesses. It is recommended by bookkeepers, solicitors, accountants and debt collection agencies to their small business clients. It has also been endorsed by trade associations, trade bodies and a number of financial institutions.

 

Your size

It doesn’t matter whether you have 10 customers or 10,000, whether you sign up new customers regularly or rarely, whether you’re just starting out or you’ve been in business for many years. AccountAssyst will benefit your business significantly. And, you don’t have to be an IT whizz to use the system. It’s been tested by hundreds of small businesses and given unanimous thumbs up for its ease of use. It provides you with accurate information on the credit worthiness of potential and existing clients and so much more besides.

 

Account Assyst logoFor example:

New Customer Account Opening –

the automated online credit account opening process involves the applicant completing your bespoke credit application form including your terms and conditions (we supply you with both). You also receive a credit report on the applicant, you are alerted to any changes to data held at Companies House and you are made aware of any new credit information. Plus you are provided with any historical data from ROSI as well as being registered for ongoing ROSI Monitor notifications (more on ROSI further on) This entire process takes just five minutes. How long does it take you now to open up an account using traditional paper-based or fax account opening processes? For many businesses it’s usually 45 minutes plus.

 

Credit Assyst OnlineThe AccountAssyst account opening process ensures that you know exactly who you are dealing with by forming your contract to supply with the correct legal entity – limited company, partnership or sole trader. The application process ensures that you collect data that will help you should you experience payment problems in the future.

 

What’s more, it costs fromjust £3.60 to open an account through AccountAssyst! And, new customers will be delighted that they’ve spent just five minutes (yes really!) completing a professional and thorough form that’s sent back to you in seconds, instead of the usual painstaking 20-30 minutes needed to complete a paper based application. Contrast this efficient solution with your competitors’ antiquated processes.

 

Existing Customer Account Reviews –

again an automated process. You have the opportunity to reform your trading relationships with existing customers using the up-to-date bespoke credit application form and up-to-date terms and conditions. Over the years you may have established trading relationships with customers on an informal basis and it’s time to protect your business and present a more professional image to your existing customers.

 

You can also gain up-to-date credit reports on your customers in addition to finding out what historical ROSI information is available that could influence your decision to continue to offer their current levels of credit. Often a business does not find out that a customer is struggling until it’s too late. AccountAssyst provides this information at a much earlier stage than other credit checking services.

 

The unique ROSI monitoring system –

ROSI stands for the Register of Outstanding Invoices. ROSI Monitor instantly alerts you by e-mail whenever one of your customers fails to pay one of their other suppliers after receiving a demand letter from a debt collection agency or solicitor. These alerts enable you to take action at the earliest opportunity and so increase the likelihood of an outstanding payment being secured.

 

You may decide to not send any further goods or to send part of an order, withholding the balance until payment is made.

 

When you open an account for a new customer or add an existing customer you are supplied with all historical ROSI information held on them. This gives you a current indication of creditworthiness which is far more useful than information contained within outdated credit reports.

 

If your customer or, a potential new customer has a ROSI entry, it means they have been through the credit control cycle of a supplier and the matter has been escalated to a solicitor or debt collection agency that have given them a further seven days to pay. Because they have not done so, they have been placed on ROSI.

 

Contrast this with the information supplied by the standard credit reporting companies. They can generally only identify that there is a problem after a County Court Judgment, which is often many months after the cash flow difficulties began and too late for you to do anything about your exposure. Receiving ROSI Monitor alerts allows you to be ahead of the game.

 

An online automated overdue monies chase process –

the customised diary prompt system is a fantastic aid to pursuing overdue monies in a controlled manner. You can choose to send the supplied instant demand letters by post, fax or e-mail. You will then be prompted by e-mail to consider any subsequent action required at the appropriate time. By simply clicking on the relevant link within the e-mail you can instantly instruct the next course of action.

 

deby management trial offerBecause it’s so simple and effective, you can delegate the day to day administrative functions of credit control to less experienced staff. What’s more, all credit control procedures and copies of demand letters are recorded on the system and a summary of the information is always available. This provides a record for the court that demonstrates the steps you have taken to recover the money should legal action become necessary. This will increase your likelihood of success.

 

The most thorough and up-to-date credit reports available –

all the crucial information you need including directors, how fast a  business is growing and how it measures up against other firms in its sector. All reports include monitoring that alert you about critical changes to the company such as a new credit rating, a County Court Judgment or new accounts filed. This information can be easily exported from AccountAssyst to update your other systems free of charge.

 

Interested?

 

Your free trial . .

At this stage, you’re probably curious to find out more about what AccountAssyst can do for your business. Why not take advantage of our unlimited two week trial and six free credit reports? Nothing beats actually putting the service through its paces and finding out how many of your business needs it ticks before arriving at a decision.

 

We are delighted to bring this important service to you. If you have a debt and would like help call RMAS on 084 321 81 673 or email RMAS

 

Credit Insurance

You have carried out all the risk management but what if they become insolvent . . ?

 

We know Credit Insurance has been difficult to obtain recently but maybe this is about to change. RMAS are an introducer to Towergate Risk Solutions. One of their businesses TL Risk Solutions have developed a facility for small businesses providing protection of up to £10,000 per customer account for a fixed annual premium.

 

This credit insurance policy is designed to provide effective cover for small businesses, protecting you against financial loss in the event of a customer becoming insolvent and unable to pay for goods and services.

 

If you would like information on this new insurance product call RMAS on 084 321 81 673 or email RMAS .



It Makes You Think

Some More of Life’s Quirks as observed by RMAS

 

Thinker

At RMAS we are always amused by life and people, particularly when they can be so daft.
Here are some more of our favourites:

 

If you find a road with no obstacles you’ll probably find it doesn’t lead anywhere.

 

If everything seems to be going well you have probably overlooked something.

 

The first 90% of a job takes 90% of the time. The last 10% takes the other 90%.

 

A penny saved is a government oversight.

 

Why do banks charge a fee on "insufficient funds" when they know there is not enough?

 

Definition -
Democracy: four wolves and a lamb voting on lunch

 

Please let us know of any of your favourites .