Credit Consultancy

[elite123]

Hi All,

Id just like your thoughts on the following. I am considering starting up a credit consultancy service. This would include going to client's businesses' and reviewing the set up they have with regards to offering credit all the way through to collections.

I own a debt collection company and have been to many places whereby i know if i spent some time with the clients i could 1) save them thousands 2) make them thousands through increased collections.

Let me know any thoughts you may have on this ?

[GRDCredit]

Hi All,

Id just like your thoughts on the following. I am considering starting up a credit consultancy service. This would include going to client's businesses' and reviewing the set up they have with regards to offering credit all the way through to collections.

I own a debt collection company and have been to many places whereby i know if i spent some time with the clients i could 1) save them thousands 2) make them thousands through increased collections.

Let me know any thoughts you may have on this ?

I think it says it all that this post has been up since 1pm and I am the first to reply at nearly 9pm. I confidently predict that you may see a post from Maxine and Steve at Thornbury Collections and then the thread will die!

I am doing exactly as you propose although taking it one step further and offering to do the credit control role as well. Without exception to date when I get to sit in front of a business person I have been able to demonstrate savings to be made in terms of debtor day/finance costs reductions and reduced problem debt. The difficulty has been getting in front of the business in the first place and making that first appointment.

You only need to see threads on here to realise that many people have a view on debt collection and seem to really love moneyclaim online but very few have a system in place to stop accounts getting to the debt collection stage by good credit control. There was one started only yesterday from someone who said there was little point in chasing any debt until it was 10 days or more overdue (or words to that effect). There is a great need for this service but good luck in convincing people to see you!

I am doing very well now but it was a struggle and a real worry to start with earlier this year.

Good Luck!


Geoff

[GRDCredit]

I think it says it all that this post has been up since 1pm and I am the first to reply at nearly 9pm. I confidently predict that you may see a post from Maxine and Steve at Thornbury Collections and then the thread will die!


Told you so......!

[Beachcomber]

Told you so......!

Really?







Bump!;)

[elite123]

Thanks Geoff.

I totally agree with your post, seems that so many people concentrate on their sales and making money and not so much time on collections until its to late.

Such things as viewing client's terms and conditions and letters can make a massive difference.

I wrote the same post approx 12 months ago and didnt get a reply and thought in this current climate i would receive more feedback.

Soon i shall be having 4-5 sales people drumming up business so hopefully i may get some consultancy work, will probably aim at larger companies.

[Gillie]

Thanks Geoff.

I totally agree with your post, seems that so many people concentrate on their sales and making money and not so much time on collections until its to late.

Such things as viewing client's terms and conditions and letters can make a massive difference.

I wrote the same post approx 12 months ago and didnt get a reply and thought in this current climate i would receive more feedback.

Soon i shall be having 4-5 sales people drumming up business so hopefully i may get some consultancy work, will probably aim at larger companies.

Unfortunately although vital, people seem to do the old ostrich act when it comes to chasing money and making sure they get it on time ... but are more than willing to make the phone calls to get the business, so marketing this at the right level should get a lot of takers - unless of course they can't get their heads of the sand yet! :eek:

[elite123]

any idea of price. I was thinking £300-£750 per day obviously depending on size of business.

[maxine]

Heres my token post then :) (prompted by GRD!!)

There is absolutely, most definately, most certainly a market. Getting people to identify this with this can be a huge task though as people "don't-know-what-they-don't-know" so there is a lot of effort in terms of awareness and education. As GRD says the focus is on debt collection and debt recovery rather than credit policy, risk and cost prevention.

I could waffle on for ages but will stop there and get off my soap box and cut to the chase.

About £500-£700 per day plus travel and expenses should be about right. Maybe have a look on the interim manager type websites or contact the ICM for short term consultancy contracts. Even the finance recruitment agencies will have short term consultancy contracts but the day rate is a bit lower at between £300-£500.

I have done some consultancy and it has all been word of mouth recommendations from people in the credit and finance industry. I am in the process of merging my credit consultancy into my sales business which was a natural move with some of my clients who want to increase their sales whilst covering risk and cost.

The other thing that helps is being a member of ICM or ACP.

Good luck
:)