We Offer Nationwide Debt Recovery Solutions
Gauteng: +27 (016) 932 4593/4 | gp@combrinck.co.za
Western Cape: +27 (044) 879 0164 | wp@combrinck.co.za
1. Boost Cash Flow: Collecting outstanding debts injects much-needed cash into your business, enhancing your cash flow. This influx of cash allows you to cover essential expenses, invest in growth opportunities, and seize last-minute savings or investment opportunities that might not have been possible without this financial boost.
2. Meet Financial Targets: Meeting financial targets is crucial for the success of any organization. By recovering overdue debts, you can bridge the gap between your actual revenues and the targeted revenue, ensuring you finish the year on a positive note. This can be especially important for businesses dependent on meeting certain financial milestones.
3. Improve Liquidity: Liquidity is essential for short-term operational needs. Collecting debts improves your liquidity, giving you the flexibility to take advantage of unexpected opportunities, respond to market changes, and manage day-to-day expenses more comfortably.
4. Reduce Bad Debt Provisions: Collecting outstanding debts can lead to a reduction in bad debt provisions. Lowering these provisions positively impacts your financial statements, making your company look more attractive to investors and lenders. It also demonstrates your commitment to maintaining financial health.
5. Enhance Creditworthiness: A strong track record of collecting debts can boost your creditworthiness. As lenders and creditors assess your financial health, they take into account your ability to manage outstanding debts effectively. By demonstrating responsible debt collection, you improve your chances of securing favorable terms and interest rates in the future.
6. Strengthen Customer Relationships: Debt collection doesn't have to be adversarial. It can be an opportunity to communicate with customers or clients and address any issues they may have had with your products or services. Successful debt collection can help mend relationships and foster goodwill, leading to continued business and customer loyalty.
7. Avoid Write-Offs: Unpaid debts that go uncollected can become a significant financial burden for your organization. As time goes on, these debts may become uncollectible and need to be written off as bad debts, negatively impacting your financial statements. Collecting debts in the final quarter of the year can help you avoid such write-offs.
8. Tax Benefits: In some cases, collecting overdue debts can result in tax benefits. Consult with your tax advisor to understand the tax implications and deductions associated with collecting debts.