Pre Legal Collection

Pre Legal Collection Services

In the world we operate in compliance and quality standards are a pre requisite to a truly successful partnership. With this very important point in mind all of Credit Style’s services have a solid foundation in this respect which is under pinned with the regular support and training of our staff from our compliance team. By operating in this way ensures that our services always meet our client’s requirements whilst at the same time adhering to regulatory quality control standards.

Our pre legal collection services vary and are directly tailored to reflect our clients own treatment strategies in order to achieve maximum performance and could include the following:

Outsourcing Support

In certain circumstances we are asked to support our clients with a white labelled outsourcing solution. Typically, due to the significant investment in debt recovery technology and the training of our staff we are asked to manage the collection of those customer accounts from due date which account for 80% of the volume but generate only 20% of the turnover. By adopting this solution ensures that ALL accounts irrespective of value can receive proactive collection activity from the point invoices become overdue for payment. In fact, we can also complete pre due date contact strategies to ensure invoices are in the system for payment.

Ongoing debt collection support

In order to help maximise the productivity of our clients own collection team we advise accounts that are greater than 30 days overdue are referred to Credit Style for debt collection activity. By operating in this way ensures that credit control teams can focus one hundred percent of their time to the collection of recently due debt whilst the aged cases can be managed by the specialist, highly trained staff at Credit Style.

The service comprises of inbound and outbound collection activity, automated SMS, email and tailored collection letters. In addition, dispute management and resolution is also included as a key component part of this solution in order to maximise collection performance, remove barriers to payment and protect our client’s brand.

ledger clean up campaigns

It is quite common for businesses to have high levels of outstanding debt greater than 90 days which is often the result of; company acquisitions, the introduction of new computer systems, significant growth, the relaxation of credit vetting procedures or reductions of personnel in credit control.

Irrespective of the cause, credit managers are faced with a dilemma which often means the entire resource available in their teams are spread thinly over the whole ledger which is actually the least productive way of bringing this under control.

In order to support our clients with this quandary we have created a solution which allows for all debt greater than 90 days to be referred to Credit Style which in turn releases the credit team to focus on all debt aged less than 90 days. By adopting this two pronged approach ensures the proverbial tap is stopped from dripping and the back log doesn’t get any bigger. Our expert aged debt agents can then professionally manage all cases referred.

This combined force will quickly bring the backlog under control improving cash flow, working capital, reducing bad debt provision and as a bi product reduceDSO in line with targets set.

The approach we adopt during any sales ledger clean-up process is meticulously planned in full knowledge that certain cases may have legitimate queries which may not have been identified. As such, the actual approach is commenced extremely gently in order to remove the barriers to payment and gain the support of the customer.

Solicitors Letter before Action Service

Many of our clients have extremely strong collection processors themselves and as such require a service which includes the despatch of a Solicitors Letter Before Action in order to prompt payment. To further strengthen this cost effective approach our in house legal team can also conduct outbound telephone collection activity prior to legal action being undertaken. The objective of this service is to accelerate payment and avoid the need to instigate legal proceedings which in turn reduces the costs associated with such action.

If you would like to discuss your collection requirements or would like our professional advice on the best methods to adopt in order to improve collection performance please contact Steve Bramley on 0114 290 1400
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