Credit Agency: A Guide to Credit Management, Debt Collection, Outsourcing.

How many companies can say that all their invoices are paid on or before their due date and they have no irrecoverable claims? The statistics say, very few. The likelihood is that your business will also miss the benefits of higher levels of working capital.

When any company examines their long-standing or ‘older’ debt reports, one of the first things they look at is bad debt and, in particular, Age over 90 days old. These are generally considered to be areas of concern and so they are, of course, the accounts that are first chased for collection. Chasing the old accounts first (conditional value) is actually the correct action to take, but surely it would be better to avoid accounts coming to 90 days, 60 days or even a day exceeded in the first lap?

The next time you take a look at your old debt report, just don’t look at the value of accounts over 60 or 90 days old but calculate the value of all overdue accounts. Think for a moment how much better off your business would be if this money was available.

Consider what your business can achieve with it

Consider what your business can achieve with it

Unless you are a financing house, you are definitely not in the business of borrowing money, so why not let someone else hold that cash that is rightfully yours and take advantage of it?

But you say, how can I prevent a debt an old debt incurs? The secret is, start chasing payment much earlier in the credit cycle and get credit processes started even before the sale is completed!

Before completing sales yourself, perform a credit check on your customer (depending on the value), especially if they are new and an unknown quantity. Providing any type of credit will expose your business to credit risk (such as a defaulted payment), so it’s clearly in your best interest to find out who your customer is and whether they have the option of paying rid of your invoice.

So your sales are completed and you now know from credit check that your customer absolutely has the means to pay your invoice. Now all you have to do is collect the money that is excellent!

As mentioned earlier, the best way to reduce your age debt is by operating early in the credit cycle. This is where an outsourced credit management service comes into its own as there are several steps involved in the process and your time is precious.

First, you must confirm that the customer received their invoice well in advance of the due date and determine if the invoice is to be queried in any way whatsoever. If a query is raised, report it on your sales finance management system. If this is something that cannot be achieved on your accounting systems, this is already an indicator that your business is one that would benefit from outsourcing to a collections agency that can.

By tagging queries/activities against all invoices, you can easily see if there are any issues that may result in late or non-payment, which highlights whether process improvements are needed in other areas of the business. This is a useful tool for any business!

At this point, you – or your outsourcing provider – can work to resolve any queries, or send copy documentation (so as to remove all valid excuses for non-payment). Once all issues are resolved, a commitment can be obtained from your customer, when and how the invoice should be paid (and they can be reminded of the payment terms). This results in support portal payments across sales Finance.

If you outsource this process

If you outsource this process

Keep in mind the quality of service will affect your reputation for good or bad. It is crucial to choose a provider whose staff is well trained, preferably with the Institute of Credit Management qualifications and has the necessary qualifications. They will then contact your customers on a confidential basis (in your name) or published basis. The only role a good debt collection team is to contact your customers, flag up any queries, and make payment commitments. If performed courteously, firmly and effectively, the results can be excellent.

Effective fundraising owes you that you have to rely less on external funding sources. This, in turn, will allow you to negotiate discounts with suppliers, as you are now able to pay them faster. Outsourcing is an added benefit, too, so the size of your debt collection team increased or decreased as a result of your busiest or slowest periods. This allows you to reduce costs when you do not need staff and only pay for extra help when you have increased sales.

Many companies that have not yet reaped the benefits of outsourcing


The credit function says they are concerned about communication issues or collectors’ clearly perceived lack of industry-specific knowledge. It is important, therefore, to outsource to a provider of industry-specialized teams assigned to individual team members to manage your accounts on an ongoing basis. A provider should be able to prove to you that industry-specific training is a key part of their staff training and development programs.

Effective outsourced credit management is about effective communication between organizations. You need to ensure that you have a dedicated account manager who stays in regular contact with you (on agreed timeframes) and disseminates information to you in ways that you will easily understand.

In addition, look for a company that can provide access to a wide range of information about your sales finance in real-time using a secure web browser. This ensures that you always know what’s going on!

Loans are lenders cheating on the OPP?

One pound from one lender is as good as one pound from another. So when you are shopping for a loan, the key issue becomes interest rates.

Could some be cheating by promoting a lower APR than the rate they are eligible for? The commercial success of promotion can be hugely improved with a really low APR. We think some should be tempted, right?

But who is to verify that the OPP is calculated correctly?


In one survey, 92% of all borrowed ads that were checked, an APR typically. (You will find below, a detailed explanation of what APR actually means, including its variants). The APR typically means that at least 66% of applicants are approved for a loan offered that APR rate or cheaper. None included that two-thirds would have been offered a higher rate than the stated APR typically.

The problem is that no independent body controls these numbers. So the system is open to cheating. The Office of Fair Trading (OFT) regulates the sale of personal loans, but even they admit that their resources are overstretched and they only control on a reactive basis.

We think it is administrative to speak for almost never!

We think it is administrative to speak for almost never!

The influential trade magazine Moneyfacts has twice raised the same concerns with the OFT asking them what checks are being carried out at the AOP quoted by lenders. After all, lenders can get to the top of the magazine’s Best-Buy tables with a low APR and gain significant amounts of business as a result.

Understanding the OPP

APR is an abbreviation for “annual percentage rate”. It illustrates the true cost of the money borrowed on loans, mortgages, and credit cards. And by law, consumers must have that information.

The APR calculation takes into account the basic interest rate, any initial fees when the interest is charged (ie daily, weekly, monthly or yearly) and any other costs you have to pay. Since all lenders are legally required to calculate APR in the same way, it should allow consumers to make meaningful cost comparisons between lending products.

So, if one financial company offers you a 5.6% loan plus an application fee of $ 100 and another offers you an interest rate of 5.8% without fees, then a comparison of the OPP figures will show which of the loans is the cheapest.

Variable APR

When you see the APR with the word variable written after it, it means that the interest rate may vary while you are repaying the loan — the interest rate is not fixed.

This variant is used in 92% of all loan advertisements


This means that the advertiser may not be specific about the interest rate applicants will be offered as their rates vary, usually in response to the applicant’s personal credit ratings and the amount they wish to borrow.

Therefore, the OPP variable is typically used to give the public a general impression of the interest rates currently offered by this lender. The addition of the word typically means that at least 66% of applicants who are approved for a loan are offered this rate or cheaper. So, once a loan offer is confirmed, the paperwork will reveal the actual APR or APR variable actually being offered.

Don’t forget that the word variable in the description also means that the interest rate is not fixed and may vary from time to time, going up or down.

APR typically

This is the same as the APR variable typically except that the interest rate is not variable – it is fixed for the term of the loan.

Find driving license loans here

Have you finally reached the age at which the driver’s license should be taken, or are you just missing the money to renew it? Then you can quickly and easily take out a loan online for such a purpose. The bank typically will not be happy to issue loans for consumption, which is why you have the option of a loan online instead.

When borrowing online , you neither provide collateral to the loan provider nor explain what the money should be used for, which is why it is typically easier and faster to get in place. You can read more here about borrowing the driver’s license online.

Driving License Loans – How Much Can You Borrow?

Driving License Loans - How Much Can You Borrow?

You have both the possibility of larger and smaller amounts when you borrow online. How much you can then borrow will depend on which loan provider and type of loan you choose. You have the opportunity here to find two types of loans. You can read more about them here.

Consumer loans for driving licenses

Consumer loans for driving licenses

The only option you have is to take out a consumer loan . This loan gives you the chance to borrow a slightly larger amount and the opportunity to have a slightly longer maturity on the loan if desired. With a consumer loan, you can borrow between USD 3,000 and 350,000 and choose a maturity of between 1 and 15 years. Therefore, there is ample opportunity to borrow enough money for a driver’s license.

The other option is to take out a quick loan . Instead, it is a loan that is taken quickly and then repaid quickly. This loan gives you the opportunity to borrow up to USD 6,000, and with some USD 10,000, so it may just cover parts of the loan for the driver’s license. However, with some loan providers it is possible to borrow for free the first time that is borrowed, if only the money is repaid within the 30 days.

The loan has quite high interest rates and it is therefore important that it be repaid quickly. Therefore, be sure that you can repay the loan before you apply for it, as it can be very expensive for you if you do not get the loan repaid.

Driving License Loans – Compare your options

Driving License Loans - Compare your options

It is important that you do not simply borrow from the first loan provider you find online. There are many different loan providers online who all want to lend you money. The different loan providers can then offer different loan terms, some better than others, so it is important to have the market examined before borrowing. This can ultimately mean that you are going to save a lot of money by choosing the right loan provider.

Here you have the chance to compare the different loan providers with each other. Simply use our loan calculator, which you will find here on the site. In this you enter where you are interested in borrowing a driving license and how long you want. Then you will get an overview of the loan options you have. Here you can compare the cost of borrowing from each individual,