Services for Invoice Finance Companies
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SERVICES – INVOICE FINANCE COMPANIES AND OTHER CHARGE HOLDERS
FREE Debtor Collateral Review
Following an initial conversation, we always suggest that the first step is to get us out to site to carry out a comprehensive Debtor Collateral Review. We do this initial review at NO CHARGE to you, regardless of the outcome. It includes:
On-site visit, usually within 24 hours but guaranteed within 48 hours, to thoroughly review the following:
Order to Cash Process
Aging Profile of the ledger and movements over recent months
Details of any issues and queries
Invoices and Backing paperwork
Staff – current and historical, and procedures followed
Reconciliations being produced
Verification of Outstanding Balances if required
While on-site we will meticulously analyse all aspects of the debt against which your Funds are secured. We call on our extensive expertise in all industries to find issues and investigate them, before reporting to you with our findings and offer solutions on day one.
We have no set agenda other than to investigate and confirm the actual status and Real Value of the Ledger, and to propose sensible solutions that we can then follow up in a variety of ways as shown below.
As mentioned before, there is no charge for this initial review, regardless of the outcome.
To get your free Debtor Collateral Review, just call our MD Glen Morgan on 0845-6385256, or 07780-865416. Alternatively, fill in the form below:
Credebt have dealt with many scenarios where initially the best thing to do is to keep an eye on Collections, Invoicing Uploads and the Funds Out Position while the client works on improvements to their systems, resolving queries and getting things back on track.
We report as frequently as is required and ensure that all parties are always aware of the situation. This can be particularly useful when a Collect Out may be required, and the Funder trusts the business to deal with their own Collections to achieve a successful outcome.
By Monitoring the situation, we can be ready to step in at very short notice if the required progress is not made.
Credit and Collections Policy and Procedures, including Staff Review
This is for your Clients who have good intentions, but whose Collections are not really meeting expectations or who don’t seem to know how to improve things. You have probably been patient with them for some time, but now the Disapproved and Aging Amounts are growing, and the Facility is not running how it should.
Credebt have considerable experience in updating Policies and Procedures or even writing them from scratch. We always have in mind what the business needs to do to maximise their Facility and keep you, the Funder, on side.
As part of our service, we will ensure that the staff members dealing with Collections and Invoicing are adequate for both your needs and those of your Client. If required, we can assist them with training and even recruitment.
As the Client will see the benefit of this, we engage with them directly, at No Cost to you!
Our Debtor Collateral Review may show that the day-to-day Collections are meeting expectations, but that for a variety of reasons, ranging from Staff changes to poor Historical Query Management Controls, a part of the Ledger, usually the End Column, is too high and needs addressing.
Credebt will assist with one or several tricky Debts and maximise the Recoveries. We will reduce the Overdue Debt to the Clients’ and your satisfaction.
While assisting in this way we will also suggest Process Improvements to prevent the same issues reoccurring.
Take Over Collections – Intensive Care
This is where you, the Funder, have lost confidence in the Client’s ability to collect their own Debt and, following our visit and Debtor Collateral Review, it is obvious that they need immediate, comprehensive help.
This can be carried out as a prelude to an expected Collect Out, or where the future of the Facility and business is uncertain, but the Ledger needs to be notably improved regardless.
Credebt will take over the Collections, either confidentially or disclosed. We will transform the Aging profile very quickly, using our expertise to reduce Overdue Debt, resolve Queries, improve the Order to Cash Process and even spot any anomalies such as Fresh Air Invoicing.
If Maximising the Collections and improving the Aging Profile is adequate to rescue the business and the relationship, then our involvement ends. However, it will often move on to other services such as Credit and Collections Policy Review & Improvements and Staff Recruitment to ensure the business can cope with the Collections themselves from then on.
If there are other fundamental issues with the business that result in a Collect Out being required, then we have already reduced your Funds Out Position and ensured that there is a much greater chance of you getting your Capital back in full.
In every case to date where we have been involved to this level before a Collect Out, except when a significant Fraud is discovered, we have been able to recover the Funder’s Position in full.
Pre-Appointment Credit Control
This is similar to where we take over Collections but is usually carried out when an Insolvency and/or Collect Out is a certainty.
Balances are verified and Cash Collections maximised so that by the time of the Appointment the Ledger and the Facility are in the best shape possible.
Controlling Funds Out Position
As part of the service when we are in any way involved with your Client and there are significant issues which are causing you concern, we will Advise and Assist you control the Funds Out Position.
For instance, if our initial Debtor Collateral Review showed that you have a higher Funds Out Position than the true value of the Ledger, we will work with you to get things back to within a comfortable amount that we can agree is recoverable under any circumstances.
This is all about returning you to a position of comfort as soon as possible.
If things have reached the point where either you or the Client want out of the relationship, one way or another, we specialise in assisting with Managed and, more importantly, Controlled Exits.
This can range from improving the Debtor Position to make the business more attractive to an alternative Funder to preparing for a Collect Out, and will usually involve at least one of our other services.
Our absolute priority in this situation is to get you your Funds back. So whatever will achieve that for you, will be exactly what we assist with, while trying to maintain an amicable relationship with the Client.
If required, we can even speak to Alternative Funders on your behalf, once we fully understand the business and their processes, as well as the reasons for the Exit being required.
In short, Credebt are Managed Exit Specialists.
There are 4 stages to a successful Collect Out, as listed below. These can all happen very quickly as you will see from the description of each.
1. Prepare for Collect Out
Our first step, as always, is an on-site visit, usually within 24 hours but guaranteed within 48 hours, to secure the following:
- Copy invoices
- System access
- Details of any issues and queries
- Backing paperwork
- Aged Debt reports
- Customer Master File
While on-site, we tidy up the Ledger and produce a Report which immediately indicates the true collectability of the Ledger, and whether you are likely to recover your Capital.
This can only be accurately assessed once the Order to Cash process has been fully understood, which is why it takes experts to do this.
We also review Aged Creditors, Contras and other issues that may impact collectability, and leave no stone unturned in reaching a realistic figure for Collections.
At this point, we will also decide if any staff still on-site can be of use with the Collections process, as our main aim is to recover your Position as quickly and effectively as possible, so we will do whatever is required to achieve this.
2. Prior to Collect Out
We will agree a No Win No Fee with you and discuss whether you would prefer to have Bad Debt Protection in place, which will aid in maximising Collections. Please see further details of this under Collections with Bad Debt Protection (our USP).
Our fee structure is incredibly flexible and can be:
- One No Win No Fee percentage agreed on all Collections
- A Tiered Fee based on milestones agreed with you
- A Low Percentage Fee until we reach Funds Out and then increased once a surplus is achieved
- In certain circumstances, we have even agreed to work for free until a surplus is achieved and then charged a higher Fee after that.
This variety of options indicates our confidence in a successful outcome for you.
3. Start Collect Out
During this process, which we aim to complete within 90 days where possible, we will be utilising our full expertise in maximising Recoveries.
We report to you as often as you like, but as an absolute minimum, you will receive a detailed progress report for the previous month’s collections from us on the 5th of every month (or the next working day). This ensures you are always fully aware of the Position.
We also notify you immediately if we uncover something which will have a detrimental impact on Collections. We don’t shy away from delivering Bad News, as we appreciate that you need to know as soon as possible.
Please note there will be no Bad News at this stage if we were already engaged before the Collect Out is required.
4. Collect Out concluded
Be assured that we don’t close a case until the remaining Recoverable Amount is zero.
We don’t give up when the majority of the Ledger has been realised. We feel obligated to work it down to zero, however hard those last few debts may be!
Once we have concluded Collections, we will issue our Final Report and Invoice, and call you to ensure that you are happy with the outcome, before getting your agreement to close the case.
If, during the Collection process, you have reached a surplus and re-assigned the Ledger to an Insolvency Practitioner, we will act exactly the same for them, if they retain us.
Collections with Bad Debt Protection (our USP)
Our normal Collection process produces Great Results. Our Collections with Bad Debt Protection produces Exceptional Results.
Credebt are the only Receivables Management firm in the UK that can obtain Bad Debt Protection against Ledgers that have been entered into an Insolvency process.
The Bad Debt Protection covers both Protracted Default and Insolvency of Debtors.
It is particularly effective if there are large Blue-Chip Debtors, as the threat of affecting their Credit Rating by putting in a claim is far more effective than the threat of Legal Action or Winding Up.
The cost of this service is absorbed in our agreed No Win No Fee rate for the Collections, so there are never any up-front costs to you, the Funder.
We aim to help Funders in any possible scenario, so if there is a situation which cannot be solved with one of our main services, then please feel free to contact us to discuss.
We are here to help, whatever the situation and requirements!
How can we help?
Credebt provide a full range of expert Receivables Management Solutions to the Insolvency Profession, the Invoice Finance Industry, advisers and their clients, from full sales ledger recovery to outsourced credit control.
For more information about how we can help, call 08456-6385256
or email our MD, Glen Morgan at email@example.com.
“I have instructed Credebt on several occasions and have always been happy with the results. Credebt are out on site quickly and provide feedback as soon as they are on site. Very useful for both in-life cases and new business opportunities. I would have no hesitation in recommending the Credebt Team for Risk Management and Receivables Management work.”
1 Henbury Road
3 Hardman Square
Credebt Limited: Registered in England Number: 6933734 Registered Office: Trym Lodge, 1 Henbury Road, Westbury on Trym, Bristol BS9 3HQ
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