For any business, identifying the credit risk
is the vital element to achieve its goals. The company needs to predict the cash flow which will allow it to make important and strategic decisions when it comes to the operations and competition. In this fluctuating economy, where there is cut-throat competition, it is essential to remain proactive for the companies rather than reactive. When it comes to financing functions like AP and AR, there are many companies that are still operating in a traditional way and relying on manual paper-based invoice and submissions and receivables. It is essential to digitalize the AR functions
of the company which will streamline each step in the transaction process. This even offers a greater guarantee of accuracy through the elimination of manual intervention.
For the companies in debt collection industries
, it is liable to learn the customer trends to drastically reduce the credit risk in the B2B market. The companies can generate credit report about the customers in order to view the past payment history, revenue and outstanding obligations which the credit report will include after deriving the information from the analytics and database. This limited information is enough to decide on whether or not to extend the credit limits of a new customer.
Besides, there are three real-time factors that are involved in the credit risk. The companies need to check out the visibility, analytics, and resource that can provide a reliable credit risk
assessment. The companies can use an automated AR solution to ascertain that provider has deep expertise and talent in the areas of technology and accounts. Lastly, you cannot separate risk for the business. It is a natural part and being able to reduce that will be more important in this competitive era.
The companies want to update their accounts at the end of every year. Most of the companies wait until an invoice is past due before taking any action. Here, we are sharing 10 top strategies to boost up the debt collection
and to speed up the collection processes.
The company needs to update its AR management software, as ineffective system slows the process and fail to provide intelligence requirements to improve credit to cash.
Reevaluate the lockbox placement. The studies should be done periodically in order to determine if they are placed in the optimum location for collections.
The company needs to review the policy regarding billing dates and the process of collecting debts. Make sure that the invoices are emailed regularly with the necessary information.
Check out the technology the company is using to interact with the customers. Whatever technology the company is using including email, faxes, electronic bill etc. should be appropriate for the organization and for the customers as well.
The company needs to discuss the terms with the buyers at the time of sale by making sure that they are also agreed to the terms and conditions.
Make it easy for the buyers to pay you. Although it is a general thing, this general element is completely overlooked. The company needs to offer all the standard payment options.
Ensure that the invoices have all the correct information including the postal address, contact number, and email addresses.
Use invoices that make it easy for the customers to understand, remit as well as easy for them to keep a record of the invoice and payment.
Observe and review the experience with the late paying customers, as it will provide you with the relevant and current information you need to stay on top of the accounts.
Review the company’s overall process to see if you can alter any process that you can tighten up to speed up the payments.
By implementing these vital strategies, you can improve your billing as well as the collection of debts
. You can even speed up your money into the bank.
The tension in investment decision making is between the risk and its return. The important perspective is that in the reach for yield, the opportunities for missteps are countless. The long-term rates are unlikely to rise and there is an ongoing opportunity with the fixed income market. Lately, the Calamos product management and analytics team are being asked to consult on fixed income allocations that are heavily tilted towards the credit risk
According to the Calamos Vice President and Team head, Shawn Park, “Many products generate meaningful yield but they must reach for it in lower quality credit, often overlapping with allocations specific to high yield and bank loans. There is also a heavy dose of securitized overlap.” Furthermore, he added that “While securitized products provide a yield advantage over investment grade quality, over diversifying in assets class is not recommended.” Besides, bank loan funds, which are also known as the floating rate funds have applied now due to the rising LIBOR. The park reminds advisors that are the types of funds arrived from volatility and potential for larger drawdowns. The bank loans are highly correlated to the credit spread cycle and the credit risk
is the primary risk to the bank loans.
In addition to this, there are market trends that are based on the current market conditions and constitute the judgment. These factors include estimates, forecasts, and statements of financial market and opinions that are subject to change without notice. The views and the strategies described may not the suitable for all the investors. For the reference to specific securities, assets classes, and financial markets all are for illustrative purpose only. These are not resulted to be and should not be included as recommendations and suggestions. The main risks of investing in the market neutral income fund involve around the equity securities risks, which consist of market price declining in general and convertible securities. The risks consisting of the potential for a decline in value during the period of rising interest rates and the risk of the borrower to miss payment synthetic convertible instruments risk, covered call writing risk, short sale risk, credit risk, liquidity risk, and many others.
The current performance date which represents the past performance displays no guarantee of future results. The current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that the sales and the shares may be worth more or less than their original price when redeemed. The performance reflected at the NAV which does not include the fund’s maximum front-end sales but had been included in the fund’s return.
The Morningstar market neutral category reflects the investment attempt to eliminate the risks of the market by holding half of the assets in long positions in stocks and the remaining half in short positions. It represents the fund that invests primarily in floating rate bank loans instead of bonds. So, in exchange for their credit risk
, they are offering high-interest payments that generally float above a common short-term benchmark. Thus, before investing into any bonds and shares, you need to carefully consider the fund’s investment objective risks, expenses, and charges.
Holiday mood is on swing, but don’t forget about your budget. Holidays bring happiness but don’t let your holidays become burden on your back. Here, we have some serious stuff that that will surely simplify your holiday budgeting.
It’s time to get sincere about holiday budgets.
It has been traced that last year an average British family spent £800 on holidays and its preparations. Large number of people borrowed money to settle all their holiday expenses prevailed before and during December.
Making a holiday budget now can help you to manage your financial stability
after holiday seasons. Its time to think about the holidays now, so that you can deduct the chances of borrowing money in December.
What to do now?
Just set a budget.
The very first step while focusing on holiday budgeting is to decide the amount of money that you want to spend on your Holidays. You can prepare a list of things that you want to do and you want to buy. This list will help you to prioritize things on the bases of their importance in your life.
Further, you can eliminate and include the thing that you want to enjoy during holiday seasons. While deciding the budget you have to keep checking everything from gifts to partying expenses. You can simply bifurcate all stuff into different categories with their relevant expenses.
Now once you defined your holiday expenses, you should start reviewing the amount you own in your pocket and how much you can spend on holidays out of it. You can compile all your incomes from bonus, salary and savings to arrange the amount of holiday expenses.
It is suggested by expert personal financial advisers
, that one should only spend 1.5% of their annual salary on holidays and vacations. So just remember this point while making budget.
At the end, we would recommend you to be enormously honest with yourself and the budget you decide for enjoying your holidays. You can take advantages of holiday sales, coupons, cash and credit discounts, gift cards, etc to take pleasure of vacations at its fullest. Till then Happy holidays to you in advance.
Debt is a horrific trouble which many of us faces through different phases of our life. The battle
with debt continues until we discover the routes and means to pay the debt off completely. As
we play multiple roles throughout the, there comes the time when we find it difficult to meet the
ends. Having said that, we are sharing some of the artistic approaches to deal with the debt.
Put Resources into Global Markets
Burning through cash may appear to be opposite when endeavoring to decrease debt,
However, contributing an income to global business markets will be one technique which
enables you to produce potential profits. There are many online Agents available for global
investment, and the global markets are extraordinarily diverse.
For example, Forex Trading gives access to do trade in an unstable market where values
always change. Hence, you should identify the threat involved and oversee them in like manner
with a specific end goal to have a possibility of benefitting. Moreover, you have to choose the
best suitable market and preferable amount of investment which could give you the maximum
Numerous people fail to judge correctly the sheer costing of the things lying around their house
or organization which they no more take into use. With the help of giant e-commerce websites
eBay, Amazon, and many alike, we can easily sell our products to the large numbers of people.
You don't actually have to spend a single penny to execute the same.
Find the second source of Income
The best way to eliminate debt forever and flourish financially
is to begin a secondary source of
income and keep it up and running. At the regular interims, you can earn and ensured the
particular amount of money, by the second source of income, which will turn out to be very
effective in debt management.
If you have a specific skill through which you can do a particular task then you should spend
some time to work as a freelancer. Nowadays, the trend of a freelancer has been increasing up
to greatest level. opting with freelancing, you can set up the stream of your secondary income.
Make Budgeting a habit
You can get to know about where you are losing your hard-earned money and from where you
can spare by just checking an overall view of your finance. Through the budgeting, you can cut
down the unneeded expenses and start saving. It only requires good management and effective
discipline to follow the budget on the regular basis. Indeed, a small proportion a week or a
month can become a huge some annually.
So, these are few of the instances where you can conclude your debt
In this contemporary era, the insurance industry is continuously evolving with the integration of high-end technologies like data enrichment and Generalized Linear Models (GLMs) for simple and complex analyses. But here the question is that which modern technology is coming next to revolutionize the insurance industry.
Here, in this blog, we are going to discuss the technology that already transformed some crucial industries like entertainment and medicines along with judiciary system. For the better evolution of insurance industry, all expectations come from the integration of machine learning techniques.
and artificial intelligence are rapidly invading diverse industry along with extrapolating the different genres. For insurance companies, machine learning will change the way of their working with actuaries and statistics. It will help us to create potential products and adds-on to suffice the customers’ requirements. It will enhance decision-making by providing us predictive models based on customers’ data and algorithms which we already have.
Certainly, machine learning techniques can also improve our telematics by calibrating scores and arranging the data aggregated from complex IoT. But this technology is still not completely flawless; it requires to be improvised to work with consistency and accuracy. This AI based modeling system will definitely provide precise and informative data-driven decisions to insurers.
This potential technology will transform every procedure from insurance professionals to the end customers in order to provide best possible support and results to the users. It’s easy and quick to use, giving out precise and unbiased decisions. It is certain and soon that this technology will restructure the operations of the insurance industry completely. You can get more information
about the predictive models for insurance companies from our website.
India is a dynamic economy with constantly altering growth stratagem and policies. Along with all new economic regimes, Indian economy is also experiencing digital revolution since last few years. Digital revolution refers to the use of digital tools for significant purposes like money transfer and payments.
In 2016-17, a tremendous increase of around 55 % is witnessed in digital payments
and it is foreseen that this trend will continue to spread its sheds in upcoming years also. It can be said that we are on the verge of the digital revolution with the intervention of government policies like demonetization which encourages digital payments.
It is analyzed that the volume of entire digital payment had an average growth rate of around 28% from 2011-12 to 2015-16. These stats clearly show that today India is on the verge of a digital payment revolution
Digital payment lays a great influence on consumers with its diversified digital technologies and platforms to conduct the online transactions. It seems that growth trends in digitalization have positive and dominant results in India.
Further, Ratan P. Watal, finance secretary
of digital payment committee of India has said: “This growth in digital payments is very critical in the light of the fact that the government has set a target of 25 billion transactions to be achieved by March 2018”.
He also added that the worth of entire payments during 2016-17 is around 13 to 14 times of GDP of the country. Since the government is immensely promoting the cashless economy by encouraging digital payments and online pay ways.
Watal also focused on the point that digital transactions of retails accounts sum up to 98 percent of the total volume of Digital payments.
Undoubtedly, Indian payments industry is widely occupied by cash transaction trends. But demonetization entirely revolutionized this trend with the digitalization of the payments. It is expected that the Indian digital payment industry will reach up to $700 billion worth of transactions by 2022.
It is predicted that in a short time 80% of the urban population of India will use digital payment ways regularly till 2022. Around, 70% of the retailers will adopt digital payment methods for retail transactions.
Digital transaction tactics are fast and reliable and along with that charges on digital transfer are reduced which eventually uplifted the trend of electronic fund transfer and mobile banking system in India.
This story is also influenced by the inclusion of Goods and Service Tax (GST)
policy. It enabled various types of financial incorporation by improving digital infrastructure and payment systems like online GST filing and transaction through applications.
Indian market is gradually accepting the ways of digital payment systems. Various digital pay ways are available in the market today, including internet banking, mobile wallets, mobile banking, PoS and more. While considering methods of digital transactions, India’s mobile wallet market is getting more competitive day by day. It is basically due to the intact support of e-commerce and telecom companies to the industry. In last couple years, many digital payment gateways and applications are being launched. Then after, Unified Payment Interface is being launched for easy and quick fund transfer in a day to day life. Earlier this year, many UPI based apps are launched, like Paytm, PhonePe, the NPCI's BHIM app, and a many other UPI based apps from different banks in the nation.
With the recent launch of Google’s payment app Tez
, the market is all set to experience some growth in users. This multilingual app enables the users to make payment without exchanging bank details. Based on Google’s proprietary Audio QR and phone numbers, it will transfer the money with an ease. In this huge bombardment of so many digital payment setups, will Google be able to make its way through? That will only be answered in time.
Although there are many positive factors for promoting digital payment industry, there is still need some regulatory support from the Indian government in order to boost the growth of this industry. Hence, there are phenomenal efforts put under the development of a cashless economy, resulting in the extensive growth of digital payment industry
. The growth and acceptance of digital infrastructure in India will give birth to the era of cashless banking and transaction soon.
It seems that collection of unpaid commission and fees become a big challenge for a recruitment firm. These debts sometimes lead the recruitment companies towards loss. I order to tackle the debt collection they generally need to get a help of Debt Collection Agency.
Today, in this blog we are going to discuss how Debt Collection Agency
is helpful to recruitment agency for their master collection procedures. Debt collection firms have in-depth knowledge of business terms of an industry, market operations and general excuses and disputes that may arise. The chunk of this information helps debt recovery agency to precisely explain debtors about their responsibilities as per terms and conditions of business and also about the consequences of legal actions. In a majority of cases, a full amount of payment is collected without any legal action, with the help of debt collection agency.
Debt collection agencies are very beneficial for handling complicated cases and disputed debts, such as:
Temp-to-perm conversion fee.
The debtor reserves the candidate for a designation other than the one CV was intended for.
The candidate enters into a contract with the debtor as a sole trader or a 3rd party.
The candidate is provided with rebate period but if the debtor breached the terms of business than their right to the rebate would be negated.
Sometimes, legal actions are necessary for debt collection
, under such circumstances a collection agency discusses the advantages and risks of legal action and they will also advise their clients to perform an action if affirmed results are assured. But as we said above a majority of cases are settled without any legal concern.
Want to know more?
If you are a recruitment firm which needs someone to collect their debt then you can get help from the professional and legal firm- Debt Nivarana
, contact us for a free debt recovery
When we are concerned about the debt recovery, legal procedure is considered as the last option in the list. Under the strong consequences of unpaid debts, debtors are preferred to be reminded about their responsibilities and due payments with the help of security compliance.Letter before Action
(LBA) is an important document of debt recovery services; it is used at the final stage of correspondence with the debtors.
Further, LBA will act as legal evidence, if the matter ends up in court. It will prove that you have attained all rational measures to keep away from legal actions. It may happen that LBA doesn’t remain effective for securing the payment from debtors. But it confers important attributes which give no prospect for debtors to defend themselves.
Looks complicated? Right!
Well, there is a solution. We have created a list of 10 Amazing Tips to Write a Debt Recovery Letter before Action
, and here it is:
Make sure that you used a precise address and email address so that debtors cannot refuse the LBA. While using email consciously receive a delivery and observe receipt in order to confirm the correspondence.
Use clear vocabulary and correct data to make sure that your focus is on debt recovery.
Add reference code and reference of your admin system that correspondences you with the debtor and their admin’ system, if they have any.
Describe the exact outstanding amount in the LBA.
Specify the payment deadline and outcomes of not paying the debt.
Inform the customers about the guidelines to contact you for disputed amount of debt.
Also include the information about debt recovery fees, compensation, and interest.
Give a clue about the issued CCJ and its effect on their credit rating.
Provide sufficient information about free credit report of their company.
Describe the payment method in detail.
With the help of these 10 tips, you can create a perfect Letter before Action for debt recovering. On the other hand, your solicitor can also send an LBA on your behalf. At Debt Nirvana
we provide full accomplished LBA template for providing prompt debt recovery services
to our clients.