Hi, my name is Paula Kruger, Area Manager for EC Credit Control in Wellington, Lower Hutt, Upper Hutt & Wairarapa.
Keeping on top of your delinquent accounts is tough and demanding. In operating and building a company, you will create a number of assets that are a measure of your success. One of those assets often viewed with less a priority than others, is the company’s accounts receivable. Because of lack of management attention or concern, this important area of your company’s financial strength is often permitted to deteriorate.
In my experience in consulting with SME’s, I can tell you that, on average, an invoice that is 90 days overdue only has about a 50% chance of being collected in full. Wait a year and the recovery rate further falls to about as little as 15%.
Therefore, you can see the importance of acting quickly. This means having a good, quick, internal procedures and processes in place and then outsourcing to a reputable collections agency such as EC Credit Control, sooner, rather than later.
When receivables age without a consistent and disciplined approach to collection, they begin to lose value. The longer a debt is uncollected, the more unlikely it is you will receive full value from it.
This is why it is important to outsource to a collector as soon as you can. We at EC Credit Control are the experts in this field. You can concentrate on what you do best. If you are a credit manager, this will free your time to put systems in place and work on some risk management strategies to reduce future accounts receivables. You are qualified in your area of expertise, so when you have outstanding debts, it is best to assign that task to a debt collection expert.
Area Manager – Wellington, Lower Hutt, Upper Hutt & Wairarapa.