The importance of Credit Management
Essentially the purpose of any business is to provide services or products for which it will generate profit from by collecting payments from Clients. Though it may seem very simple and straight forward, it is very frequent that obligations of the Clients go unfulfilled. Non paying customers may create serious problems to a company since the debt can grow to unsustainable heights. Credit Management can be a daunting task as it may require several actions to be carried out in order to settle a payment. It is a very sensitive matter as well since it may cause unwanted tension with the client. Hiring a credit management firm can relieve a company from the burden, while maximizing the possibilities of a positive outcome.
A Credit management company will undertake all steps needed to resolve the matter, which many times requires legal action against the debtor. The credit manager will initially produce a demand letter, which will be taken more seriously when coming from a credit management agency. It will inform the debtor of his debt, give him the chance to respond and discuss several solutions for resolving the issue. This will demand plenty of investigative activity so as to get a complete picture of who the debtor is and his financial status and ability to settle the debt.
When the business to business attempts fail to sort the debt out, a credit management agency will proceed with legal action, which can be very time consuming. The benefit of having an agency for the job is that they can represent you throughout the case. It is often the case that even after you have obtained a judgement, the debtor is not in the position to resolve his debt. A credit management agency will then implement forced collection of the judgement.
Having an agency to handle credit management can be the most effective way to deal with the unfortunate situation of unsettled debt. IBCM Cyprus can undertake the task for you, ensuring maximum debt recovery. Make sure to give us a call so we can discuss your problem.