Professional Receivables Management pays off

Transcription

1 Professional Receivables Management pays off Cover bad debts for more liquidity

2 Outsourcing receivables means securing the future A stable cash-flow and assured liquidity are of vital importance for companies of any size. A realistic look at the future and guaranteed long-term success wholly depends on a secure money flow. After the economic turbulence of the past years, more and more decision makers have realised that professional receivables management can make an demonstrable contribution to their companies solvency. As a consequence, a growing number of firms outsource their receivables management. Advantages of working with an external partner Reduce outstanding payments Safeguard your company s liquidity and improve your creditworthiness Concentrate on your core business Profit from a higher degree of planning security

3 Three options, one aim: Safeguarding your liquidity Many companies face similar challenges, yet there is rarely a standard solution. When it comes to outstanding payments, various factors have to be considered. Overall, there are three ways of outsourcing receivables: 1. Fiduciary debt collection means handing over receivables to an external partner who takes care of the collection process for you. You still own the claims. Thus, you are the decision-maker regarding payment options such as to what extent you are willing to accept payments by installments. The benefit is that you can concentrate on your core business while experts in debt collection search for the best solution with your clients, which often results in a higher number of paid claims or lower process costs. This assignment can be done for a pre-legal collection phase as well as for legal enforcement. PARTNER 2. Selling receivables means increased and earlier liquidity and less risk. Usually, banks or companies bundle a number of outstanding or upcoming claims to a so-called debt portfolio and offer it for sale. Once the portfolio is sold, you profit from the instant cashflow. The price of the portfolio reflects the discounted payment probability less the costs of collection. Regarding your input in the processes, individual conditions can be settled in the contract. PARTNER

4 3. Outsourcing business units that deal with receivables management is becoming more and more popular. Companies divest their whole debt collection department to a strategic partner, usually a professional debt collector, thereby freeing themselves from the whole topic of debt collection and the resources attached. Usually, this divestment goes hand in hand with a long-term agreement regarding future receivables that will then be handled by the canvasser. The extent to which you will be involved in future processes relies on the individual contract you make with the acquiring company. PARTNER How to find the right partner? Receivables management is a sensitive issue and the existence of some dubious debt collectors has harmed the overall image of the branch in the past. In contrast to that, many companies value the competence of professional and reliable experts that take care of their receivables. When looking for a partner, you can prove their integrity by looking at some factors: do they engage in an association or branch activities? Do they have an international network, yearlong experience and /or high standards regarding transparency? For most reputable players, these questions can be answered with a yes. You can also check whether a company works based on sound values that respect your debtor as an individual who is a potential future client. These points minimise the risk of working with a company whose behaviour can harm your company s image and at the same time are often an indicator for a partner who makes the most of your claims.

5 Outsourcing offers potential savings of 30 to 40 per cent. This is due to the higher level of standardisation and automation of processes as well as the concentration of know-how at specialised firms such as EOS. Daniela Vetter, Consultant at Consileon Business Consultancy GmbH, Germany It is important for us to work with a reliable company that plays a key role both in local and international markets and is familiar with our sector. The co-operation with EOS functions exceptionally well. Gábor Száraz, Head of Communications at Tigáz Hungary We rely on a professional service provider who specialises in collecting outstanding debt. EOS treats our customers like its own the perfect partner. Christoph Wünsche, Head of Central Customers Services at Linde Group, Germany EOS understands our business and distinguishes itself through its high level of expertise and flexibility. For this reason, it has become a key partner for our risk management stategy. Iñigo Santamaria, Head of Receivables Management, Vodafone in Spain

6 Connected worldwide EOS locations EOS partner locations Why EOS? The guiding principles for the EOS Group are focus and understanding. Focus, because we work with reliability and determination. Understanding, because we respond to each situation with versatility and an open mind in order to find the best solution. We engage with our clients as a service provider and partner, while debtors are regarded as the customers of our clients. Our focus is on finding co-operative solutions for all parties involved for our client s success and security. EOS facts and figures Represented in more than 25 countries on four continents More than 50 subsidiaries provide services for around 20,000 clients Through an international network, EOS is represented in more than 140 countries EOS Solutions UK Plc 2 Birchwood Office Park Crab Lane Fearnhead Warrington WA2 0XS England Phone: Fax: