If payment -despite your fine debtor management- still fails to materialise, there are several ways to make a successful settlement yourself with credit insurance. What should you look out for?
2 things to keep an eye on:
- You ensure that you make a payment arrangement whereby the oldest invoice is received within the collection notification period. The deadline varies by insurer and is between 75 and 120 days after the due date of the oldest outstanding invoice.
- Does your debtor indicate he needs more time for a payment arrangement or is there a dispute? Then you can ask your insurer for approval to postpone collection measures.
Then the payment still remains outstanding? Then you will eventually proceed to debt collection. You can enlist the help of a third party. In order not to have to wait longer than necessary for your money or to spend unnecessary time and money on debt collection. We list the main reasons for outsourcing debt collection:
5 reasons to outsource debt collection
- Speed. Credit managers often spend as much as 40 per cent of their time bringing in overdue receivables. If they outsource this, they save a lot of time.
- Efficiency. Do you know how and where to file debt collection abroad? And how to do this as quickly as possible? Many people quickly end up with a local lawyer or bailiff. Credit insurers benefit from an international network.
- Knowledge. If you outsource your debt collection to a debt collection company, you can benefit from its experience. For example, from a large database of debtor details. Multiple files on a single debtor can be merged, putting you in a stronger position vis-à-vis the debtor when agreeing a payment schedule.
- Costs. Outsourcing debt collection does not have to cost a lot. For instance, with a single debt collection expert, you only pay the collection fees if they have successfully collected.
- Combination options. It offers advantages if the collection agency offers credit insurance in addition to collection services. If there are problems in debt collection, the agency can withdraw the credit limit. A strong weapon.
What do you look for in a debt collection partner?
Debt collection is a profession in its own right. In our view, one thing should be at the heart of this: maintaining the relationship with the buyer. In addition, you look for a partner suited to your specific situation. How high is the claim? In which industry does the buyer operate? In which country is your customer based? The last thing you want, on top of your problems with your customer, is to go from bad to worse with your collection partner. Xolv will gladly help you track down non-paying customers and advise you on the actions and next steps. If nothing else, we will engage a collection partner to collect the debt, always with a focus on preserving the customer relationship. So you can concentrate on your own business again!
Source: https://www.allianz-trade.com/nl_NL/kennis-tips/blogs/incasso-uitbesteden.html
