Almost all bad accounts receivable are caused by negligence; either of commission or omission. Many collection staff, especially those that are considered rank and file personnel such as credit investigators and collection assistants are put in a situation where they “do not know what are they supposed to do”. It is a fact that there is no school for credit and collection profession. This is the reason why we have inadequate, under exposed, under trained and inexperienced credit and collection personnel in terms of handling the challenges and problems of credit and collection.
Likewise, there are so many uncollected bad accounts that are hopelessly being pursued for collection by the creditors/sellers in their mistaken perception that they can “save” in paying commission fees to collection agencies.
Don’t practice “false economy” in the collection of your distressed or bad accounts receivables. Endorsed them immediately to a reputable, reliable, no-nonsense credit & collection company. CIBI Information for instance, is one of the few companies in the country today that has both the expertise and technology to pursue a no-nonsense collection of bad accounts.
Some companies are even putting the burden to their sales people (to the point of sacrificing the sales) in the collection of their delinquent accounts. True, these sales people have the familiarity of the account since they are the “one who closed the deal”, but most of the time this is a handicap in terms of collecting the account effectively.
Personally, I believe that sales people will be more effective in pursuing sales rather than waiting unproductively for payments from delinquent customers. My advise: leave the collection of these bad debts to third parties and this will give you more effective cost benefits in such endeavors. But of course, needless to say, always learn from past sales experience (mistake) and improve in terms of prospecting, documentation and credit granting.
Furthermore, in terms of legal collection activity, there are many areas an attorney need to do in collection transactions but generally do not perform them because they are petty or minor tasks. These tasks are relegated to the minor members of their firm if at all, they have. The inattention and/or lack of understanding, know how of how these para-legal tasks are done expeditiously and efficiently may spell the difference between the effectiveness, enforceability or collectibility of money claims or services against obligors/ debtors.
It might be interesting to know that there are some of the para-legal tasks that can be done, such as:
1. Attorney-in-fact services;
2. Proper cost, effective-efficient documentation of sales, credit transactions;
3. Proper, timely notarization and registration of registrable documents;
4. Special service of summons, subpoena, warrants of arrest and the like;
5. Implementation, supervision of sheriffs in enforcing writs of attachment, execution, replevin, ejectment, possession among others.
For credit & collection (C&C) questions, comments and rejoinders you want to share or inquire, call or text 0917-7220521 or email at elimtingco@cibi.net.ph