Active Measures against Payment Default
Payment default can place a heavy strain on your company’s income. Additionally, tedious order-for-payment procedures tie up capital, reduce your liquidity and damage your relationship to your end customers. Professional collection services should not only aim to recover debts, but ideally should prevent the need for such measures in the first place. It is important to consider customer- and market-specific features and develop individual strategies.
Supply Chain Solutions offers e-commerce solutions that actively prevent potential payment default at the online shop level. Examples of such preventive measures include the active control of (available) payment methods and real-time credit checks. Alternatively, to completely rule out any default risk, Arvato offers factoring for end customers’ invoices.
In the B2B environment, it is often advisable to proactively approach end customers. This might include sending them a list of outstanding receivables or contacting them by phone before the due date, reminding them of the approaching time for payment. Particularly in the case of large customers with many accounts receivable/payable and different due dates, this helps to clarify questions in advance and ensure timely payment.
Our solutions for professional collection services save our customers time and costs. They benefit from our expertise on multiple levels. Each end customer is addressed in the right language and at the appropriate level for their specific case, and the number of debt defaults is reduced.
If a payment ends up being overdue, the first step is to issue a formal reminder of payment due. Besides the possibility of communicating by email or letter, there is also the option of phone contact. In e-commerce, this process is configured on the basis of country-specific deadlines; in the B2B environment, however, it is advisable to adjust the process based on country, customer group, invoice amount and other parameters. Collection services are fully integrated into our order and delivery processes. This allows us to specify if end customers with overdue payments will be blocked from placing further orders or if they will only be given the option to make purchases with secure payment methods. If the formal order for payment is unsuccessful, we take the next step of commissioning a debt collection agency with recovering the debt. This can be done by Arvato or a third-party service provider. The debt collection agency communicates with the end customer, using the specifications you provide, and all payments are handled through this service provider after the debt has been transferred. If this extrajudicial process on the part of the debt collection agency is likewise unsuccessful, a lawsuit can then be filed.
- Extrajudicial and judicial debt collection
- Post-litigation debt collection
- International debt recovery
- Management reports with all essential figures and KPIs (including success rate statistics)
- Purchase of debts
- Thanks to its years of experience in international collection services, Arvato can support your company with a strategy that is perfectly aligned with your business goals.
- Our integrated payment solution enables Arvato to optimally guide your end customers during the ordering process, thus helping to prevent payment default.
- Communication that is tailored to the end customer – both in terms of customer group and country – helps to increase the rate of received payments and preserve your relationship with your customers.
- Up-to-date reporting and monitoring of receivables provide you with transparency and enable us to identify and respond to trends at an early stage.