Credit management

Credit Control Division

You may request us to take long-term responsibility for any aspect of your credit management – all pursuit of overdue accounts, for example, or all assessment of credit-worthiness of potential customers, (subject to the expected level of credit).

This is set up by means of a written agreement between Universal Business Services and yourselves and is charged on an hourly rate, plus expenses where appropriate.

Alternatively, we can make an assessment of your current credit management procedures and offer advice on areas for improvement, if required.
In particular, we can provide tuition to you and your staff on how to make successful “chasing” telephone calls.

Again, all of this is charged at an hourly rate.

The following list gives some idea of the commonest problem areas for small businesses:

• Do you make informed credit decisions?
• Do you make your payment terms clear to your customers before processing their order?
• Is your account system sufficiently well organised to enable you to find invoices easily, and distinguish between paid and unpaid?
• Does your invoice design optimise prompt payment, eliminating many customer excuses?
• Have you a monthly plan to collect your debts?
• Do your “chasing” telephone calls get good results?
• Do you keep a customer record of payment history?


Our Collection Code

Up to three courteous reminders by telephone plus one final demand letter if required.

Any interim communications as appropriate – e.g. to arrange payment by installments, etc.

It is short-term debts, which are the commonest cause of business failure – not the aged debts.

Any further pursuit required from ourselves, for example taking action through the Local Court, will result in the case being treated as a matter of debt-recovery as opposed to credit control


Audit Approach

Our adjusters start by stating “We’re trying to help clear up some outstanding balances for XYZ Company. Your company’s name is on the list, and a review of your balance shows it is past due. When do you expect to get this account current and what can we do to help?”

System 1 – Easy Soft Approach

Phone calls only, no personal visits to the debtor. Make debtor aware there is a problem and that a third party is now involved. A slap on the wrist and a “Lets get this paid right away.” In a lot of cases this approach is all that is needed to get this matter resolved.

System 2 – Strong Approach

Phone calls. No personal visits. Serious action will be taken if the debt is not retired right away. There will be a sense of urgency in getting this account promptly paid.

System 3 – Action Approach

Phone calls and special correspondence will be sent. If at this point we are unable to recover the balance, we will request that a 7 day letter of demand be issued indicating that the debtor will be defaulted with the Baycorp Advantage Pty Ltd [CRAA], hindering their credit rating and future ability to obtain loans, and credit.

System 4 – Litigation

If all of the above efforts fail to produce the desired results, we will consult with you regarding the advisability of suing the debtor. If an action seems appropriate, we can facilitate the program.

Please Note: - When a claim is placed with us and no system is suggested, we always start out” soft but firm”, then get progressively stronger, as above, in our collection process.