We aren’t taking the risk away from you – you still need to do business with high caliber clients who will meet their payment obligations.
If your client defaults on payments you are liable for the unpaid principal balance…. But only the unpaid principal… not the interest or fees.
The good news is that our procedures minimise the risk of us ever having to exercise our right to recourse. We do this by:
Our payment options (3/6/9 months)- research and experience shows that this is a very “safe zone” for lending. ie. If we credit check your client today, we can be confident that in 6 months their financial situation will be largely the same…in 9 months, still likely to be similar…. but in 12 months? – all bets are off – it may be a TOTALLY different financial picture.
We credit check most customers – this protects you.
If one of your customers wants to spread payments and a credit check shows up something “iffy” that makes us uncomfortable lending to them – wouldn’t you like to know?
If one of your customers is refused lending because we’re not sure they’ll honour their payment commitments, then you might want to consider your decision to do the work/sell your services to them?
Our Direct Debit system – Direct Debit is great because it puts us in control.
Our Payment monitoring system – we have a specialised team that monitor the payments. It is seamless and automated. If a scheduled payment is missed, it is noticed immediately and steps taken to re-schedule the payment.
(Statistically approx. 1% of agreements end up defaulting so it’s very few in the scheme of things)
Most companies find that the benefits outweigh this small risk and they realise that our involvement helps mitigate the risk of non-payment more than if we weren’t involved.