Rationale for using debt collection agency as part of efficient credit and collection management

Debt collection agencies can provide several added values to a business when it comes to credit and collection management. These include:

1. Increased recovery rate: Debt collection agencies have specialized knowledge and experience in collecting past-due accounts, and can often use strategies that in-house staff may not be aware of, which can increase the chances of recovering the debt.

2. Time-saving: Outsourcing the task of collecting past-due debts to a debt collection agency can free up time for in-house staff to focus on other tasks, such as managing new sales and customer relationships.

3. Professionalism: Debt collection agencies can provide a more professional and objective approach to debt collection, which can help maintain positive relationships with customers.

4. Legal Expertise: Debt collection agencies may have legal authority to take certain actions such as filing a lawsuit, wage garnishment, and bank levy which in-house staff may not have, that can increase the chances of recovering the debt.

5. Credit reporting: Some debt collection agencies may also report the debt to credit bureaus which can negatively impact the debtor's credit score, this can serve as a deterrent for those who are considering not paying their debts in the future.

6. Cost-effective: Using a debt collection agency can be a cost-effective solution for businesses, as they typically charge a percentage of the debt recovered, rather than a flat fee.

7. Continuous monitoring: Some debt collection agencies also offer continuous monitoring of customer's credit history, this can help businesses to identify potential issues early and take action before they become significant problems.

For this reasons Qube Servicing will integrate debt collection agencies when deemed necessary as part of credit & collection management supported by CrediSoft.

PRI® CrediSoft is a proprietary receivables credit platform supporting credit management processes supported by Qube Servicing. The platform manages and integrates collection workflows and tasks

• On a daily basis as wells as intraday PRI® CrediSoft manages, controls and monitors all collection tasks defined as part of credit management:

• • Main workflow:
  • Subflows such as
    • Promise to pay, and
    • Disputes;
• Receivables portfolio performance via Dashboard functionality;
• Administration, Debtor and Receivables information accessed via Agenda and/or Debtor section, and
• Detailed information generated in the Reports section:
• Supports debtor communication as well as (internal) client communication by mail, multi languages, as part of the collection workflow tasks, incl. logging as part of tasks performed;

• Enables access to specific Debtor, including Receivables, workflows to third parties such as credit insurers, credit collection agencies and/or bailiffs providing when required;

• And supports Voice over IP.

PRI® CrediSoft has been developed based on experience by Qube Servicing with market offerings and with the objective to enhance user friendly and efficiency of the credit management application supporting the collection process.

Compared with the market the service and functionality offered by PRI® CrediSoft proofs to be excellent and evidenced by demo on request.