“The primary role of the collection team is to act as an extension of your credit department,” says Donald. “It takes over when a customer is well-overdue with a significant payment. And in doing so, our experts relieve busy finance teams of the burden of bad debt recovery, saving your company time and money.”
We apply a professional and proven model designed to recover outstanding funds, escalating activity when required.
At the outset, we alert the debtor to the fact that Euler Hermes is now appointed to collect the debt and stresses the need for a quick and positive resolution. However, if that proves fruitless, a collection specialist – such as Darrel – is appointed to the case, who takes a deep dive into the debtor’s background and trading status, drawing on a mix of official company records, detailed online research and locally-gathered intelligence.
The starting point is always understanding the situation – whether the unpaid bill is for $20,000 or $200,000. As Darrel highlights: “The more information you have, the better off you’re going to be. As I learnt early in my career, information is knowledge, knowledge is power, and power leads to the money.”
That knowledge, coupled with our expertise, allows us to address many of the pain points that our clients encounter when they try to collect bad debts themselves. Those challenges include finding ways to access the key decision-makers, assessing the debtor’s ability to make payments, setting appropriate deadlines, and knowing how any associated laws can be applied – while always striking a balance between firmly insisting on the matter being resolved and the need to maintain a positive customer relationship.
“An important part of that information-gathering involves knowing who to target to encourage payment – often the CFO or CEO themselves – and how to get their attention,” he says. “But the approach also has to be diplomatic and respectful. After all, in many cases, these are our client’s valued business partners,” he points out.