Almost all bad account receivables are caused by negligence; either of commission or omission. Many rank and file personnel such as credit investigators and collection assistants in both commercial and consumer industries are either inadequate, under exposed, lacking in necessary training and worse are inexperienced in the methodology, correct procedure (especially in escalation matters), provocations, challenges of credit and collection problems.
Furthermore, there are so many uncollected bad accounts that are still hopelessly being pursued for collection by the creditors/sellers rather than endorsing it immediately to a third party collection agency, in their mistaken perception that they can “save” in paying commission fees to collection agencies or attorney’s fees. Don’t practice “false economy” in the collection of your distressed or bad accounts receivable. My advice, endorsed immediately your bad debts or ageing accounts receivables to a reputable, reliable, no-nonsense credit & collection company. For instance, CIBI Information 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.
Moreover, it is sometimes unfortunate that 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. Personally, I believe that they are better and more effective in pursuing and evaluating quality prospects and increasing sales volume than waiting unproductively for payments from delinquent customers. Leave the bad debt collection to third parties and this will give you more effective cost benefits in the process.
Likewise, if you are thinking of giving it to a third party collection agency, always remember that there are many areas and steps that need to be done in collection transactions. However, generally these tasks are often not performed and handled by professionals or well trained collectors because they are petty or minor tasks. These minor tasks are relegated to on-the-job trainees (OJT) 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 collectability of money claims or services against obligors/ debtors.
Lastly, it might be interesting for you to know that there are some para-legal tasks that must be done expeditiously and carefully such as: 1. Proper cost, effective-efficient documentation of sales, credit transactions; 2.Proper, timely notarization and registration of registrable documents; 3.Special service of summons, subpoena, warrants of arrest and the like; 4.Implementation, supervision of sheriffs in enforcing writs of attachment, execution, replevin, ejectment, possession and the like.
For questions and inquiries, call or text 0917-7220521 or email at elimtingco@cibi.net.ph