Cycle European undertakes to inform your customers (individuals & businesses) about their overdue or doubtful debts to your company and to negotiate the delay and manner of paying back these debts, according to your instructions. These services may be provided for any sort of payment cases, and shall, at all times, comply with the rules derived from your commercial and credit policy. Therefore we are able to effectively manage your receivables and get the most out of the collection mechanism, without violating your commercial policy and on the same time maintaining and increasing your sales.
We respect our clients and protect their public image, by always ensuring that we operate with an approved legal framework. We manage your receivables, but we do not take any action in regard to your debtor's assets. Our exclusive role is to inform your customers over the phone or letters and to propose payment settlements, following the guidelines that you, our partner, have instructed us with. This way, we encourage your clients to meet their transactional obligations.
The advantages provided to the clients by Cycle European:
Reduce time for the debt collection and, as result, the limitation of borrowing and payment of interest.
Reduce your company losses and legal expenses from bad debts.
Improve customer management in collection matters with the aim of avoiding conflict and related uncertain outcomes.
Improve your company business competitiveness due to reduction of borrowing costs and losses from bad debts.
Create Receivables Management Rules per Customer Category, based on your Commercial Policy, with the ability to measure deviations from the rule.
The Cycle European procedure for collection of receivables has been successfully adjusted to a large number of clients and requires speed and efficiency. We have the necessary experience in managing small and large delays in customer accounts, active and finalized contracts. The procedure consists of three phases: early collection, late collection and paralegal / pre legal collection.
1) Early Collection - The first and the most important phase of collection of debts.
Our experience has shown that the effectiveness of collection of disputed claims up to 30 days of age, is more than 85%, while with the increasing age of the debt, the percentage drops to 20% (for two years old debts). Therefore it is very important for your business to react earlier and implement the first steps of collection during the 90 days of delay.
The very early collection procedure is primarily based on continuous telephone calling of debtors. In the direct communication with the debtors, we find the optimal solution for the common interest of our clients and the debtors. In addition to calling, the procedure for early collection includes data validation, additional searches, writing notice of unsettled obligations, sms messages.
2) Late collection - Collection of receivables from customers whose contracts have ended.
The second phase of debt collection requires an adjustment according to each debtor, depending on the phase of the debt collection. Procedure includes checking of data, intensifying phone contacts, sms messages, written notice, the first (mild) and second (strict) letter of warning as well as additional searches. Each step debtors are informed about their obligations and consequences. Also, if some debtors are not able to pay the entire debt, we are offering them solutions as out of court settlements, reconciliation of debt through instalments or write-off for a part of the interest.
The advantage of using a third part to contact the debtor creates a positive psychological effect to the debtor. The debtor becomes aware that our client has started to take measures in order to collect the debt and that the next step is trial. Although the response to this stage is lower than at the previous one, persistence and higher pressure leads to accepting the obligations from the debtor.
3) Paralegal/pre legal collection - Single projects for selected debtors who are chosen for court process.
Paralegal procedure involves sending the LAST WARNING BEFORE COURT PROCESS signed by a lawyer. This service is the last attempt of collection of receivables and it is significant for confirmation of data which can be used in the court process.
4) Skip tracing
Debtors often try to walk away from their responsibilities and debts. To the untrained eye it can often seem as if they have disappeared from the face of the earth. However, if you know where to search, their new hideout can be often found and more investigation usually leads to the debtor's full, new residential profile.
Don't write off a debt just because the debtor has tried to hide behind a new address.
Employ us as specialists in finding debtors.
Cycle European undertakes tracing in-house, using a specific department.
Our skilled specialist tracing agents have a variety of methods and tools of obtaining new information and access to major databases, to view, watch and research debtors' present residential addresses.
To name a few of the databases we search are:
Internet and media
Registered voting lists.
We are required to bring to your notice all new obtained information as per the agreement, including telephone numbers and addresses.