The Debt Collection Agency: a pillar of your cash management strategy

The Collection Firm collection of debt : Pillar of your cash management strategy!

In normal times, nearly 60,000 bankruptcy filings are registered by the Registries in one year!

Nearly a third are due to payment defaults! 3 out of 10 companies created never never pass the 3 years mark!

Imagine then what will happen in the coming months for SMEs and self-employed if nothing is done during and after the COVID19 crisis ?!

The measures taken by the Government are unprecedented and indeed it is an economic war that we are living!

This War is led by the State and it is enough to go on the site of the Ministry to understand the colossal investments necessary to save an economy which was preparing for some time to know a new stock exchange crash.

Reduce payment times 

The most precautionary SMEs were those that systematically have introduced a cash flow monitoring system into their management methods, enabling them to control their WCR and DSO, an indicator of their collection times.

Thus, they have all adopted a cash management strategy by monitoring and drastically tracking down bad payers or debtors who take their ease with payment terms! The oldest adages are never devoid of common sense and one of them announces that "unlike good wine, a debt does not age well" reminds us that those who get paid quickly benefit from a treasury that allows them to see the hard times coming!

A bad management can indeed lead to a natural selection and to an inescapable sanction by the Law of the Market, but what should we think of a SME or a self-employed person who does not manage to reduce his payment delays and remains at the mercy of a debtor who will not have any scruples not to pay in time his debt and in time?

Is it simply the result of bad management? Is it not also the result of a generalized and cultural behavior among companies?

The study of payment behaviors highlights that only 36% of French companies respect the deadlines!

For some time now, a number of tools and applications have been flourishing that promise to help business owners collect their debts more quickly.

Among the most recent and most active, we can mention CREANSOFT, UPFLOW, AGICAPand also LIBEO, whose applications help reduce DSO by automating preventive customer reminder processes before the deadline!

What happens when there are unpaid and overdue invoices using these tools?

Indeed, the tools, even the most efficient ones, require that the company manager spends time and commits personally to the recovery process!

The privileged and often emotional relationship that he maintains with his clients makes it difficult for him to follow up until he has to put off doing so.

Factoring or insurance solutions in case of unpaid invoices such as MOMENT exist but they remain expensive and when they are chosenWhen they are chosen, the company manager loses all control over the customer relationship.

As you can see, there comes a day when the company manager is left without any solution and has to turn to a third party to collect his unpaid invoices!

LEGALCITY the online debt collection solution

With this in mind, LEGALCITY has set up a fully digitalized and 100% online debt collection service, both amicable and judicial.

The novelty is that in only 5 minutes it is possible to delegate the collection of a debt in an amicable way but also in a legal way (order to pay).

LEGALCITY's teams assure you a professional accompaniment and preservation, even if it has previously the relationship with the debtor client, even if it has previously deteriorated. the debtor client.

The debtor's reachability, listening, discussion and inter-mediation are at the heart of the debt collection strategy of a Collection Agency.

Offering this service to VSEs/SMEs and the self-employed is a necessity, and making it accessible to as many people as possible is a duty for LEGALCITY.

The choice of a collection agency is crucial and the following criteria should not be overlooked:

• Reachability and follow-up of the files on line possible:

Is the Collection Agency is easily reachable?

• Is there telephone support? Instant messaging?
• Is there a dedicated customer area where I can follow the progress of my pending cases?
• Is it an internet solution that can be accessed at any time?

• The notoriety and seriousness of the collection firm :

• Is the collection agency reliable?

• Are there certified customer reviews?reviews-verified/Trustpilot)
• Does it have Civil liability insurance for the debt collection activity?
• Is there an equestrian account declared to the Public Prosecutor?

• Costs and pricing of the Collection Agency:

• Are the services of the Collection Agency affordable?

• Is there a minimum application fee?
• Is there a minimum billing amount?
• How much is the success fee?

• How are the the retrocessions in case of success?
• Is there a subscription solution for collection services?

• Follow-up of the files and accompaniment by the collection agency:

• How do I get support from the collection agency?

• Does it have a legal department?

• Does it have a network of bailiff partners for judicial collection?
• Does it accompany me until the execution of the court decisions?
• Does it have a network of lawyers to obtain an advantageous rate?

Once you have answered all of these questions, you will most likely choose LEGALCITY's debt collection services!

It is important to note that LEGALCITY is also an application connected to a number of software software publishers and is part of the ecosystem of QUICKBOOKS, SAGE and ZOHO.

You have increased functionality for automated transfer of your collection files without the application of file fees.

In conclusion, it is important for you to prepare a return to normal and to radically change your way of following your cash flow by being accompanied by professionals who will preserve your customer relationship and who will find solutions allowing you to improve your cash flow and to anticipate hard times!

The advantage of the collection office amicable collection agency is that you only pay forthe services only when you succeed, unlike any others other solutions that require you to subscribe to applications or financial services that you may not be able to use. may not you may not need!

Our teams can be reached on 0175858516 at any time to give you information.

You can also read our complete guide to debt collection here:

https://legalcity.fr/recouvrement-de-creance-le-guide-complet/

Going further:

Ministry of the Economy Measures: https://www.economie.gouv.fr/coronavirus-soutien-entreprises

Articles from impôts.gouv : https://www.impots.gouv.fr/portail/coronavirus-covid-19-le-point-sur-la-situation

Our services : https://legalcity.fr/recouvrement-de-creance/