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Collecting against outstanding balances with Corporate Collect

Dec, 06
Collecting against outstanding balances with Corporate Collect

Manually collecting against outstanding balances or debt can be very time consuming. Corporate Collect offers services that allow customers/clients to pay for your services or products by means of debit orders. No more threatening phone calls or begging for payments.

Corporate Collect offers unique debit order solutions

The Corporate Collect debit order product is ideal for businesses whom are looking for a convenient way of collecting against balances. For example, if you own a restaurant or coffee shop, you may extend credit to corporate clients. Payments for all the accumulated bills can be made via debit order every week, every second week or every month. This depends on how frequent you choose for a set maximum amount or the outstanding balance, until the amount has fully been repaid.

If you have a bad debt or outstanding balance of say R20 000 a client owes you and you collect a maximum of R2000 per week, after week 1, the client will still owe R18 000, after week 2, R16 000 and so forth. Our unique system creates a client profile for you that includes a ledger of all transactions. You can always add more journals to these ledgers for fees interest and discounts if you wish.

How does it work?

So, at an agreed upon time of the month R2 000 will be deducted from the companies whom are using your service via debit order. The system will keep track of these payments and adjust the ledger automatically. At the end of the cycle, if only R1 000 debt remains, the system will deduct only R1 000. The system keeps track of what the outstanding balance is at all times.

A client can add to their debt at any time. If they wish to make additional debt of R3 000 for example, the system will automatically add it to the total amount of debt owed to you. Clients can also adjust their monthly installments to R3 000 from R2 000. They can even make cash payments directly to you which you can then record as credits against his debt still owed.

Collecting against outstanding balances – A breakdown

Herewith a weekly schedule of a transaction trail:

Week 1 – Clients are given a certain amount to spend. A line limit of R10 000, for example. After week 1, the system will deduct the week’s spend of R6 322 for example. At the end of every week, the bill will be clean. Let’s say the clients exceed the line limit of R10 000 one week and spend R12 000. The uncollected R2 000 will stand over to the next week and be collected on the next cycle. If the maximum debit order amount is not increased it will collect whatever is the outstanding balance up to a maximum of R10 000.

Week 2 – A new line limit of R10 000 is available. So during the week, the clients can utilize the restaurant. At the end of the week, all their bills will be deducted via debit order.

How Corporate Collect can simplify debit orders

Corporate Collect is a cost saving debit order company in South Africa. Thanks to its automatic debit order processing system, there is no need for tedious monthly manual debit order processing and management. Sign up today for 24/7 access to your data, a low-cost structure and a secure Corporate Collect – Debit Order Management Platform. Corporate Collect is the first choice when it comes to managing and collecting debit orders in South Africa.

For more info, contact Jacques Serfontein on 082 556 3705 or email jacques@corporatecollect.co.za.





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