A pragmatic company shall be prepared for any eventualities – delays on part of both reliable and unreliable customers, and operation in the conditions when they must compromise with them. It tries to verify the reliability of its business partners, sign only precisely drawn up trade contracts, scrupulously take care of the documents and maintains contacts with its debtors.
Is it enough to protect one’s financial liquidity?
These steps are very important, but – in practice – the scale of duties overwhelms even the best-organised company. It requires time and money to collect reliable data about customers. The most important data should be taken from financial statements and customers’ solvency should be accurately assessed.
Monitoring of invoices, their proper arrangement requires time and – assuming their big quantities – a good software that many companies even do not possess.
The greatest challenge, though, is debt collection. It is the most difficult step since it requires contacts with the debtor. If it is commissioned to a company employee, many questions arise: who should become a debt collector? How should they contact the debtor? What to do if all the attempts are unsuccessful? Should we refer the case to court (which costs much money)?
Finally, it becomes obvious that we should undertake more resolute actions. For that reason, the best solution may be to hire a specialised company.
The market offers services that enable us to protect financial liquidity of the company (factoring), occurrence of crisis situation (debt collection), and many supplementary services.
It is worth considering to start cooperation with a specialist, since it has got relevant knowledge and tools that will help the company to overcome the obstacles which are hardly possible to be overcome on its own.
Where to begin? Cooperation with a specialist – factoring and debt collection, i.e. two services for a pragmatic company.
Published on: 9 November 2016