Obtaining credit recovery from creditors is definitely not an easy task. In fact, many companies are experiencing serious delays in the collection of their loans. The result is a serious decline in financial capacity, with some companies going bankrupt. That’s why it’s so important to develop an effective credit recovery policy. Here, you’ll find solutions for effective credit recovery.
Using credit collection software
There are many advantages to using credit collection software to recover your credit. Some credit collection software packages enable you to monitor a company’s receivables across the board.
It gives all company managers an overview of concrete collection solutions and actions. In fact, debt collection software provides access to a complete, personalized list of collection actions. This type of tool offers many other advantages.
Easy distribution of tasks
The perfect structuring of this type of software helps to prioritize the various collection tasks. What’s more, almost 80% of collection operations will now be automated. A computerized credit collection tool also enables us to work collaboratively.
In this way, the manager can assign actions to the person concerned, and fully monitor their completion. The entire collection team can access each customer’s collection status with a simple share.
Access to a fair flow of information
This software provides access to up-to-date data for all company players, enabling more generalized monitoring of receivables. By using credit collection software, you can control and anticipate debtors’ payment behavior. These software packages even provide for spontaneous reminder messages to be sent to creditors after a certain period.
It’s worth pointing out that credit recovery software is an effective and relevant tool. What’s more, they won’t cost you much, unlike any legal action you might have to take.
Initiate payment injunction proceedings
This legal action is the least costly and concerns debtors who have become insolvent despite the existence of a contractual obligation. It begins with the filing of a petition with the court clerk’s office to compel the debtor to pay his debts. This collection solution takes place in a commercial court, where the judge issues an injunction to pay. This only becomes an enforceable title once it reaches the debtor within 6 months at the latest.
Bailiff seizures
Of course, this credit collection solution requires the intervention of a bailiff.
This action is only possible if the order for payment also fails. Bailiff seizures generally take the following forms:
- seizure in escrow, also known as seizure of earnings;
- seizure of bank accounts, also known as garnishment;
- seizure and sale.
Bailiff seizures can also take the form of conservatory seizures. The latter is temporary and is generally only used in emergencies. It acts only on the debtor’s movable property. This solution also requires a writ of execution. However, it can be started if the creditor holds documents proving the existence of an actual debt, such as :
- an unpaid cheque ;
- an accepted bill of exchange ;
- unpaid rent ;
- an unpaid invoice ;
- a promissory bill and court order not yet enforceable, etc.
By providing one of these documents or securities, the company manager can directly call in a bailiff to carry out a protective seizure. But if the company is unable to provide proof, the bailiff will have to seek the judge’s authorization before carrying out a protective seizure. It should be noted that costs and expenses relating to the seizure are generally charged to the debtor, subject to the judge’s decision.
In conclusion, credit collection software is the best way to recover credit quickly. In fact, the quality of their organization means that they can help a company avoid the worry of unpaid bills. What’s more, if they’re used properly, they’ll certainly avoid having to resort to solutions that are far too inconvenient.
Source : https://www.indicerh.net/quels-sont-les-moyens-efficaces-de-recouvrement-de-crdit/
Aston Cash Collection’s SaaS platform can help you collect your receivables efficiently. Click here to make an appointment with one of our sales representatives.
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