Comments on: The Sorely Missing Element in the Collections Industry http://writtenoffamerica.com/the-next-collection-industry/ A 21st Century Survival Guide for Those Who Owe and Those Who are Owed Mon, 19 Mar 2012 02:42:25 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Hanif Patel http://writtenoffamerica.com/the-next-collection-industry/comment-page-1/#comment-13436 Hanif Patel Thu, 21 Apr 2011 18:25:21 +0000 http://writtenoffamerica.com/?p=489#comment-13436 Dear Jerry, This is an excellent post. I hear laud and clear. Vintage whiskey has its own taste and value. This what you are and these write ups are essential tools for the newer generation. I have always preached in every training session I had working with various bank around the globe that there are only four kinds delinquent customers - regardless of geography; 1 Slow Payers 2. Willing but unable to pay 3 Able but unwilling to pay 4 Credit Criminals Fadi has rightly touched upon couple of them at length There are no issues with first kind, however, I feel the mediation role best fit for 2 and 3. Whereas type 4, a very little fraction of the portfolio though, has to be taken to task by any which way deemed necessary. After spending 22 years in the business of collections and recoveries in Pakistan, Saudi Arabia, Qatar, Bahrain and U.A.E. and to a little extend in South East Asia and the USA returned to Pakistan recognizing the essence of Mediation formulated a company called OmniMediators and planning to work on lines as illustrated by you. I have full faith that it will be a success. Keep it coming J.... Dear Jerry,

This is an excellent post. I hear laud and clear. Vintage whiskey has its own taste and value. This what you are and these write ups are essential tools for the newer generation.

I have always preached in every training session I had working with various bank around the globe that there are only four kinds delinquent customers – regardless of geography;

1 Slow Payers
2. Willing but unable to pay
3 Able but unwilling to pay
4 Credit Criminals

Fadi has rightly touched upon couple of them at length

There are no issues with first kind, however, I feel the mediation role best fit for 2 and 3. Whereas type 4, a very little fraction of the portfolio though, has to be taken to task by any which way deemed necessary.

After spending 22 years in the business of collections and recoveries in Pakistan, Saudi Arabia, Qatar, Bahrain and U.A.E. and to a little extend in South East Asia and the USA returned to Pakistan recognizing the essence of Mediation formulated a company called OmniMediators and planning to work on lines as illustrated by you. I have full faith that it will be a success.

Keep it coming J….

]]> By: Renee Prejean-Motanky http://writtenoffamerica.com/the-next-collection-industry/comment-page-1/#comment-775 Renee Prejean-Motanky Sat, 24 Jul 2010 11:04:43 +0000 http://writtenoffamerica.com/?p=489#comment-775 @fadi haddad: Another important reason for non-payment is that the customer/client disputes the validity of the bill. In an instance like this, mediation could be a tremendously beneficial tactic. Great post! @fadi haddad: Another important reason for non-payment is that the customer/client disputes the validity of the bill. In an instance like this, mediation could be a tremendously beneficial tactic. Great post!

]]> By: Tom Valenti http://writtenoffamerica.com/the-next-collection-industry/comment-page-1/#comment-765 Tom Valenti Fri, 23 Jul 2010 14:54:48 +0000 http://writtenoffamerica.com/?p=489#comment-765 Great post. I hope that this becomes a trend. Great post. I hope that this becomes a trend.

]]> By: Fadi Haddad http://writtenoffamerica.com/the-next-collection-industry/comment-page-1/#comment-458 Fadi Haddad Tue, 22 Jun 2010 07:46:13 +0000 http://writtenoffamerica.com/?p=489#comment-458 Hello Jerry, As far as I know the reasons behind a past due invoice are the following: Client side: Unable to pay his invoices: 1. The client has no cash in hand; poor collection management from his end or he is suffering from collecting his bills as well 2. The client went bankrupt Unwilling to pay his invoices: 1. The client saves his liquidity for other investments or managing his cash flow by delaying his payments 2. A rising price environment 3. Client has bad intentions Company Side: 1. Collector’s manipulations 2. Poor collection performance 3. Credit Dept. is granting credits with no thorough research and reasonable basis 4. Sales Dept. is only focusing on up-selling and earning commissions 5. Miscommunication between the credit, collection and the sales dept. where each dept. works solely Client/Company 1. Delivery of goods/services wasn’t up to the client’s expectations so the client refuses to pay 2. A certain debate Where does mediation come in? To solve disputes before the issue ends up in court? To get engaged to improve client’s ability and willingness? Or, to re-organize the company’s structure? What if the client is right, does it mean a past due invoice remains uncollectable? Please accept my limited understanding but your post really widened my horizons and I wish to explore more Regards Fadi Hello Jerry,

As far as I know the reasons behind a past due invoice are the following:

Client side:
Unable to pay his invoices:
1. The client has no cash in hand; poor collection management from his end or he is suffering from collecting his bills as well
2. The client went bankrupt

Unwilling to pay his invoices:
1. The client saves his liquidity for other investments or managing his cash flow by delaying his payments
2. A rising price environment
3. Client has bad intentions

Company Side:
1. Collector’s manipulations
2. Poor collection performance
3. Credit Dept. is granting credits with no thorough research and reasonable basis
4. Sales Dept. is only focusing on up-selling and earning commissions
5. Miscommunication between the credit, collection and the sales dept. where each dept. works solely

Client/Company
1. Delivery of goods/services wasn’t up to the client’s expectations so the client refuses to pay
2. A certain debate

Where does mediation come in? To solve disputes before the issue ends up in court? To get engaged to improve client’s ability and willingness? Or, to re-organize the company’s structure? What if the client is right, does it mean a past due invoice remains uncollectable?

Please accept my limited understanding but your post really widened my horizons and I wish to explore more

Regards

Fadi

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