Credit Management Services Services

Cash flow is the very lifeblood of a business. In this regard, each business should consider whether it is doing everything it should to ensure that its customers are paying on time. The recovery of business and commercial debt can be frustrating and time consuming. It is better to put in place proper procedures which enable the early identification of potential bad debts. The key to getting paid on time is having an effective credit management policy which begins at the order stage.

  • Ensure sales staff are familiar with company’s credit policy
  • Use a credit application form
  • Make a credit check on new customer (bank references, trade references, the clients management accounts)
  • Obtain a personal guarantee from “doubtful” customers
  • Set a minimum order level for credit sales. It is important to remember that there is a cost involved in setting up a credit account
  • Decide which customers will receive credit – credit is not an automatic entitlement
  • Set a credit limit for each new customer
  • Conduct regular credit checks on your main customers
  • Ensure your Terms of Trade allow you to charge interest on Late Payment
  • Ensure your Terms of Trade have procedures to deal with disputes
  • Ensure your Terms of Trade specify Credit Terms. Best terms are 30 days from date of invoice.
  • Agree the payment terms in writing.
  • Ask for third party guarantees whenever you anticipate a higher risk of delayed payments

Our Core Areas;

  • Debt management and consultancy
  • Credit control advisory services
  • Debt Collection, investigations and recovery services
  • Collection of unpaid rents for clients

Debt Recovery:

Consider stopping supplying when payment has not been made by a set time past the due date. Have a different stop policy for different categories of customers.

Put your non performing debtors in the hands of Gamma collection, investigation and recovery teams.

Our professional approach to debt collection produces better results than the traditional strong -arm tactics. An account that may seem hopeless or destined for lengthy litigation may be resolved amicably through persuasive communication and with a voice of reason. We employ our technical capability, national reach and local knowledge to partner with our clients to make the recovery process seamless. We seek to make the debtors understand the economic, commercial, ethical and social reasons why paying debt is beneficial for their business continuity.

The Gamma recovery process:

  1. Internal review- the board and receivables management teams should candidly investigate the situation leading to delayed payment by the debtors and collect as much information as possible to the exact cause of the default.
  2. Paper work-the finance, sales and credit handling teams to ensure that all the paper work concerning the credit or loan is in order, organized and communication is up to date. If collateral or guarantees were provided, check the position and current status of these as well.
  3. Engagement: a meeting should be held with the debtor to discuss the position of the loan or overdue debts and how they intend to repay. The lender or creditor is keenly interested in the borrower making the payments on time.
  4. Action plan: during the meeting a clear objective on the way forward based on the information already collected should be obtained. The lender or creditor should strike a balance with the debtor or borrower and come up with an acceptable solution for both parties involved without further and greater losses being incurred.
  5. Credit Insurance- Some Insurers are building products that seeks to mitigate bad debts. It’s a big opportunity in the business community to counter the rising crisis of bad debts.

Our debt collection rates are dependent on the date of the oldest invoice to the debtor.

Claims not accepted for collection:

  • Claims without a current and complete address of the debtor
  • Claims with no supporting documentation to evaluate the debt existence
  • Claims against businesses that have been served with bankruptcy orders
  • Claims where a court of law has determined as closed or is on injunction

Come & Say Hi,

Our offices are open Mon-Fri, 8:00 AM to 5:00 PM

  • Victory House, Garden Estate Road, P.O. Box 17924 – 00100 Nairobi, Kenya

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