Our fee structure is simple, reasonable and fixed. Invoice Age Commission Rate:
Age of the debt is determined from the last date of the last payment, or in event that no payment was received, the date of last purchase/service rendered as follows:
|0 - 30 days||10%|
|30 - 60 days||15%|
|60 - 90 days||20%|
|90 - 120 days||25%|
|120 - 150 days||30%|
|150 - 180 days||35%|
|180 - 210+||50%|
This formula guarantees that the clients know the limitations of their costs of recovery and the client will also be aware that we are results driven. We will not undertake any commission unless there is a strong prospect of a successful recovery.
NOTE: The Commission Rates as shown above are very much subject to Negotiations at all times and are also very much flexible based on the “VALUE” and “VOLUME” of Local or International Placements made. Please kindly write us or call in for more information and details
Another note on the “no cure no pay” fantasy
> Debt recovery requires investment. One has to spend money to make a return because, from the moment when the debtor is in default, the creditor has nothing except hope until a return is made.
> There are collection agencies who lure clients with a “no cure no pay” arrangement. By nature of the fact that virtually all debts require an initial financial investment in terms of investigation, surveillance, litigation, monitoring and persistent, consistent pressure on the debtor, it is a fool’s paradise to believe recoveries in Africa are possible on a contingency basis; however, haven known this, we have professionally decided to foot these expenses on a contingency basis; hence “no cure no pay”
> In many cases we keep the debtor under continuous pressure to repay until the end – which is why some of our cases have taken well over 10 to 18 months to finalize and recover.
> In our experience, very few significant recoveries are made by arriving like “Zorro” in a foreign country, and then exerting brief pressure on the debtor in pursuit of a claim. In any event, the debtor probably does not have ready cash available. Which is why we set up a structured repayment schedule for the debtor; the repayment is then monitored by our local agents who are always nearby to continue with the necessary element of consistent pressure.
> Another feature of the recovery process is that the debtor thinks that he/she cannot repay the debt. That debtor has often failed to consider financial tools where credit can be leveraged from the debtor’s asset profile. We can and often do assist the debtor in raising the necessary finance to repay the debt directly or in terms of a repayment schedule.
> The additional time spent pursuing the debtor does not cost the creditor more money.
Our success rate on specific cases is dependent on several factors including the age of the debt and the financial standing of the debtor.
In another light: Our recovery reconciliation figures show that for every dollar the creditor has spent on our services, that creditor has seen a positive ROI.
There are obviously exceptions to these statistics. However, as the prospective client, you alone know in the beginning whether recovery attempts are worthwhile, which is why we will question the creditor closely on these issues.
At the point when the client is about to instruct us formally, we will provide that client with names of referees / other clients who will explain and provide references.