Page 9 - NEXUM Information Pack

“What do we need to spend to collect a debt? How long will it take? These are key measurements within our collections process”.
Speed, risk and cost; the prime focus of a successful pre-legal collections operation.
It is a disappointment for any organization whose unpaid balances reach this stage of activity. The customer has purchased a product or service, the price paid incorporated a profit margin and unpaid amounts incur unexpected costs, squeezing margins further. A number of issues are flagged at this stage, the biggest being when and if the payment will be made and what needs to be done and at what cost.
‘What needs to be done’
Pre-legal collections spans across a range of organisations; often the account will start at the creditors, continue to a third party and in some circumstances the debt is sold off to debt purchasers. The main concern for all involved is cost and risk of collection. The creditor will pursue t he account until it either becomes uneconomical or unlikely to collect. The third party having agreed a fee for collection will be concerned that they can recover the payment within a period of time with minimal investment. The debt purchaser will want to assess the risk within t he portfolio and like the agency follow a plan to secure payment within the shortest possible timeframe and at the lowest activity cost1 of investment.
The NEXUM approach
Our approach is to optimise the flow of information and actions within your team. Our main concern relates to time spent administering an account. There are three elements that we focus on:
1. The availability of information to the collector
2. The validity of the information at a relevant and specific point in time 3. The time taken to take act and secure payment
Our belief is the collector should be able to rapidly progress through a list of accounts, taking relevant action when required. A business process governing the flow drives t he collector towards productivity, leaving unproductive activities to be consumed by NEXUM.
Establishing the ‘what if’ scenario
If the debtor is at the address, res ponds, accepts liability and commits to pay then the process is pretty simple, but what if .
there is no reply
the debtor is unable to settle the debtor disputes the debt an instalment is missed
you require further information
Just a few examples of ‘what if’ scenarios, but from this list of five a wide range of activities, actions and information is required. How much time is spent around administering these accounts? And at what cost?
www.nexumsoftware.com Tel: +44 (0) 845 226 8184 Email: info@nexumsoftware.com