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The implementation of an efficient receivables management becomes more and more important in an environment becoming more and more competitive and in a tense overall economic situation. Also in 2002, company insolvencies increased considerably. Approximately 38,000 companies were forced to file for bankruptcy. Therefore a prompt, qualified, process and cost optimized follow up of overdue receivables is more important than ever. This is the only way to minimize bad debt losses and reduce the costs incurred for collection.

 

 

The Solution of the Problem – four Important Factors

 

1. Promptness
If a debtor defaults its payments, fast action is decisive to be successful. An efficient and prompt follow-up of the receivables reduces insolvency risks of the debtor and strengthens the liquidity of the own company. Every further delay before taking action reduces the chances of success dramatically.

2. Process Optimization
To ensure a prompt processing and in view of minimizing the costs as much as possible, an optimization of the processes of receivables management should be of utmost importance. Small measures can result in large cost savings. The optimization of the implemented IT-solution is particularly important, as it provides the largest potential for cost savings.

3. Quality
One aspect in the area of receivables management which is often neglected is the quality of the processing, especially in case of external service providers. A qualified customer care, allowing for the specific needs of the company and branch of industry, providing for a steady improvement of the quality through a continuous exchange between the own company and the external service provider involved in debt collection is needed, not just a schematic processing without any consideration for the particularities of the own company.

4. Costs
Last but not least, the costs incurred for collection have to be within a reasonable limit. The outsourcing of services is one of the most important instruments to reach this target. Apart from the well-established advantages of this method, due to legal reasons the costs incurred for external service providers can be more easily transferred to the debtor than costs incurred internally.

 

 

The Special Competence of Aon Credit International

Aon Credit Internation is also a competent consultant in the area of receivables management. We assist your company in finding the adequate quality and cost optimized solution. We know our favored suppliers for many years and our references are first-class.