Credit Department Audit.

This includes a full investigation of all the systems that are used in the Credit department, the forms and documentation, as well as a variety of Management reports to ensure that the effectiveness of the Credit function can be measured and evaluated. If required an informal interview is conducted with the Credit controllers to determine their skills levels. A detailed report is then given to management, showing an analysis of the risk, any weaknesses in the systems and forms and a recommendation of any training and/or improvements that may be required. This service normally costs between R 500.00 to R 1,000.00.

Any Company who sells for Credit, is at risk of losing money, not only as a result of a bad debt caused by Insolvency, but also through deliberate non-payment, fraud, interest on overdue amounts, excessive stationery, phone bills etc. If the department is not effectively managed, the potential for risk increases dramatically. In a worst case scenario this could lead to severe or even disastrous financial losses.

Application Forms.

This includes a scrutiny of the client’s application form to ensure that it contains all the clauses and conditions that are required to do the three things that an application forms should do:

If clients do not have application forms, we will design forms specifically for the conditions of each Company.

Unless application forms are checked regularly, the possibility exists that clauses may become outdated. This could lead to less effective collections and loss of money.

Credit Policy Development and Implementation.

This service includes in-depth discussions with Top Management, Marketing and Sales Managers as well as the Credit controller or Manager. A written Policy is then drawn up to ensure that Credit is granted on a uniform basis and that all accounts are treated consistently. This greatly improves the Credit Department’s efficiency and ensures that Credit is granted on a safer basis, to an increased number of Customers. If no policy exists, the danger of credit sales being made on a haphazard or unsafe basis increases. This may lead to serious losses if the debt cannot be collected. The advantage of a written policy is that the rules around all Credit sales are known to all parties from the salesman to the bookkeeper, which means that discipline is much easier in this difficult but important area.

Debt Collections.

We have a unique and effective system for collecting book debts from overdue or delinquent customers. We charge R300.00 per collection, payable when the amount is handed over, and no further charges are made, unless the matter is defended and has to go to Court. In the case of a defended matter, only the costs of the attorney are collected. No profit margin is added to this. We enjoy a high success percentage, because each collection is discussed with the client before we act. In the case of potential disputes, the client is first encouraged to sort the matter out, before spending money on collections. At these prices, we are cost-effective to any company who has overdue accounts, and who wish to save on the costs associated with delinquent accounts and cash flow tied up in non-paying debtors. If there is no effective collection system in place, the risk of loss increases through uncollected accounts as well as loss of interest on slow paying accounts.

Risk Assessment

This service includes the investigation of all new accounts, as well as existing Customers where there may be a question about their Credit worthiness, using the 7 C's of Credit as a basis and combining it with our own unique scoring system for trade accounts. This service normally costs between R 200.00 to R 500.00 per account, depending on the amount of Credit required. In certain cases, we may recommend further action to safeguard the account. This may lead to successful sales that would normally be turned down by the client. Proper risk assessment not only makes it safer to grant credit, but also increases sales, because appropriate steps are taken to secure doubtful accounts. We have found that many Companies are not truly aware of the risk hidden in their debtors. This may cause them to overlook required action, leading to losses.

Credit Controller Training.

This comprehensive training course normally sells for R 1,500 per controller and includes full training on The opening of accounts, Risk Assessment, Administration, Collections, Handing Over, Liquidations and Management Reports. Part of the course fee also includes free unlimited telephonic and e-mail support for a year. This course makes a controller more effective immediately and assists in improving the profitability of the Company. This is also a good way to motivate staff and to introduce new ideas into a client’s business.

Age Analysis inspection and analysing.

This service includes a detailed analysis of the age analysis to determine how safe the book debts are. It includes the calculation of an average payment term per debtor, and a written report, classifying the debtors and suggesting remedial action where required. The classification of the debtors also helps the controller to prioritise the collection effort by applying focus to the higher risk categories. Once the book has been analysed, it becomes a tool to determine the level of risk that the client is showing, compared to the risk that he wants to assume. If this analysis is not done at least twice a year, there is a distinct risk that the sales focus will be misdirected and that the correct collection steps will not be taken timeously.

Credit Seminars.

Profcred does a variety of Credit seminars, covering all aspects of the Credit function, as well as interaction between Credit and Sales, Motivation and also issuing your own summons. We also give seminars and work shops about the changing regulations, laws and procedures around all aspects of Credit. These seminars can be held in-house where they are tailored to specific requirements or open to the general public.

Bookkeeping.

This service is geared toward the smaller business. We do a fully computerised book keeping service to balance sheet on the latest version of Pastel. This service includes a monthly meeting with the owners to discuss the direction the Company is taking and to assist them in taking corrective action if problems arise. This service is structured in such a way that we form a team with our clients, using our expertise, combined with theirs to make their businesses prosper and grow.

Administration is as vital as production in any business. If this is not done correctly, danger signs may be overlooked, leading to potential losses.

Office Administration.

We give a fully outsourced office administration service, including telephone messages, typing, fax, e-mail, internet, Credit control, or any other service that clients may require. This includes the 4 basic Management functions of Planning, Leading, Organising and Controlling, together with and assisting the permanent staff. These services are all rendered on a special quote basis.

Business Plans.

These plans are essential to a well run business and provides focus, clarity, and purpose, as well as highlighting strengths, weaknesses, opportunities and threats. They form an invaluable tool for the business to impress all stakeholders with their professional approach to the business. This very detailed and comprehensive plan normally costs from R 1,500 to R 3,000.

Consulting on all aspects of Credit.

We are experts at all aspects of Trade Credit Management and control. We accept contracts from half a day to 3 years on any and all aspects of Trade Credit. Normal price is about R1,500 per day.

General Management Consulting.

This service assists small to medium size organisations with management problems that they may have. This is normally charged at the same price as the Credit Management consulting.

Managing Agents for Sectional Title Schemes.

This service includes all tasks that managing agents should perform, and is charged at R 20.00 per unit per month for complexes with 30 units and more and R25.00 per unit per month for complexes with less than 30 units. This includes the accounting, administration and secretarial work required by Body Corporates.

CONTACT US AT:-

info@labourjustice.com
or
credit@rhandcompany.com