How Debt collection agency is helpful to Recruitment Agency

debt collection

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.
  • Back-door association.

  • 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 analyses.

    10 Amazing Tips to Write a Debt Recovery Letter before Action

    debt collection

    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.

    3 Ways to Improve the Cash Flow of Business

    cash flow

    Business is all about cash inflows and outflows; if these cash flows are not maintained properly then business can find it difficult to achieve sustainability. Business Cash flows depict the increase in the profit and revenue of the business.

    But the biggest challenge that the company tackles is to optimize the cash inflows for sustaining in the dynamic business environment. Tactics of optimizing cash flows might look like a piece of puzzle, but it can be simplified if you adopt these 3 ways to improve the cash flow of business-

  • Revise the price of your Product-

  • Sometimes, if the price of your product is too affordable or cheap, it won’t be taken seriously. If the price is comparatively higher, then you may lose your sales. Hence, it is important that you reevaluate the price at regular interval of time in order to retain sales and attain a competitive edge. You can take advantage of different business factors and increase the price of the product according to the circumstances. This will help you to increase cash flow for a business.

  • Renegotiate Contracts-

  • You might be involved in the long-term and short-term business contracts with your service providers and suppliers. Small business cash flows are highly affected by suppliers and their payment terms. Even big companies should enter into the negotiable contracts with their supplier agencies. You can have an opportunity to increase the stability of the supplies by re-negotiating the contracts for long-term business benefits.

  • Design strict disciplines for payments-

  • You can create strict rules for late penalties of the payment supported by predefined fines and penalties. On the other hand, you can also appreciate early payment by providing incentives and discount on the accounts paid before or on time. You can also charge interest on the due payments and bills receivable for improving the cash flow of the business. Since you can find and adopt many other ways to improve the cash flows of the business, but the above-discussed tactics are most trusted ways used to balance the cash flow accounting of the business.

    Credit Risk Management- Key to the Holistic Growth of the Business

    credit risk management

    Are you looking for the intact credit risk strategy for your business? It is kind of challenge for the firms. Let me tell you that efficient Credit Risk Management can help you to achieve multiple objectives of the business. It can take your business beyond the regulatory requirements and development goals.

    Here, in this blog, we discussed some crucial basics of Credit Risk and its effective management in the Financial Institutions. Diligent management of credit problem is becoming a strategic focus of the business.

    What is Credit Risk?

    Credit Risk refers to the risk that arises from borrower’s or counterparty’s incompetency to meet payment terms as stated in the invoice and defaulting on the same. (3rd party debt collection and bad debt collection terms). Credit collection is the major issue faces by most of the financial institutions. A Greater part of firm’s credit risk is emerged out of its lending activities like Unfunded Loan Commitments, Outstanding Eases and Loan Amount, Letter of Credits, Trading Accounts Assets, Financial Guarantees, Account Receivables Outsourcing and Derivative Assets. Credit risk is also associated with interbank transaction activities, acceptance and trade finance, investment settlements and retail banking.

    How it works?

    Debts risk management is set of activities conducted to minimize the loss by properly analyzing the loan loss reserves and bank’s capital at the given point of time. It is essential to form and execute a radical credit policy balance the risk involved in credit appraisal activities. It is a top management’s responsibility to formulate a strategy for credit risk reduction and management along with improvement in credit policies and risk monitoring practices.

    Business information reports and credit reports should be precisely examined to set credit limits and control the risk in all kind credit provision activities. Hence, it is advisable to the financial institutions to monitor all the aspects of the credit risk management for achieving the overall growth and competitive advantage.

    Brief Synopsis of Business Information Reports are :
    Our Credit Rating process is highly technical in nature with a fact based approach. Parameters considered are:

  • Management details
  • Operational details
  • Financials Statements
  • Financial Ratios
  • Industry standings
  • Financial institutions feedback
  • Credit rating history
  • Regulatory filings
  • Database and Desktop searches

  • Our Approach

    We ensure that all clients are rated in a consistent manner with the Credit report (aka Business Information Report) which involves following aspects:

  • Credit Terms or Prepay Terms
  • In case, Credit Terms, Credit Lines will be recommended