Receivables collection/servicing
Professional servicing
We stand ready to assist you at all stages of collecting matured, written-off, and contested receivables. We tailor collection efforts to the types of receivables and debtors involved whilst upholding the rights and safeguarding the interests of all stakeholders. Our use of the success fee model reduces cost and risk of failure in both in-court and out-of-court collection. Both as servicers and as new creditors, we always strive to resolve collection issues amicably, never exceeding the bounds of professional communication and observing the strictest ethical standards.
In today’s marketplace, with its clear-cut financial terms and deadlines, inability to collect receivables may pose a major issue. Ineffective collection arrangements promote irresponsible behaviour that damages honest consumers and businesses, as well as the economy at large. Serbia’s poor collection rates make borrowing terms much less favourable than they could otherwise be. Utility and services providers include hidden charges in their bills to protect themselves from customers who are able to pay but refuse to do so.
The inability of creditors to collect their receivables in court has been hindering economic growth and development. Improving collection rates is no panacea, but other countries’ experiences have shown this has had a major positive impact on the business environment and, more importantly, could represent a major step towards greater living standards and financial security for the general population.
An unpredictable business environment can create financial pressures for your clients and lead them to accumulate debt. Dealing with collection is fraught with challenges, consumes time and resources, and increases cost, preventing you from focusing on your core business and maximising profit. Inadequate communication raises the risk of losing debtors’ future business and foregoing potential revenue.
Tested procedures
ODM Collections employs tried and tested procedures and effective collection systems whilst taking into account all professional and ethical aspects of these transactions. Aware that there is no universal collection model, we tailor our efforts to each particular type of receivable, debtor, and client, whilst respecting the rights and safeguarding the interests of all stakeholders. Our structured approach, coupled with the professionalism of our team, ensures the greatest possible collection rate in the shortest possible period of time. Clients are exposed to no risks, expenditures, or investments until the collection is safely over, and necessary costs are kept to a minimum, depending on the quality and size of the receivables in question.
Collection stages
If your regular communications with clients fail to result in collection, it is important to respond swiftly and entrust us with professional management of your receivables. Debts not collected when they become due may jeopardise the liquidity and security of your business.
2. Early (’soft’) collection
We help ensure your customers pay their debts on time whilst maintaining relationships with them. We contact debtors by telephone and letter to offer a polite reminder their payment is due, advise them about payment deadlines and procedures, and inform them of the consequences of failing to pay. All communication with debtors is structured and follows scenarios prepared in advance that are based on the debtor’s area of activity, nature of the receivables in question, and circumstances surrounding the receivables. We adhere to the strictest professional and ethical standards of communication. We never make distressing telephone calls, disturb debtors’ neighbours or family members, or engage in any similar socially unacceptable conduct.
4. In-court collection
In-court collection is the final option where the preceding stages have failed to ensure the debt is paid. Companies are often reluctant to choose this course of action due to the overall state of the judiciary, procedural complexity, and high costs. Our team stands ready to help you overcome these challenges and, working with reputable law firms and professional enforcement officers, ensures collection in the shortest possible periods of time wherever statutory requirements are met. Our strategy always seeks to avoid legal action wherever possible in an effort to preserve relationships between clients and their debtors and minimise procedural costs. We seek to avoid enforced collection and are proud of the fact it accounts for fewer than 1 percent of the cases we manage.
1. Invoice management
For us, the collection process begins as soon as an invoice is issued. We sequence and monitor invoices properly from origination to maturity to ultimate collection. Communication with debtors throughout all stages of the process ensures timely and regular payment.
3. Pre-legal collection: payment notices
A formal notice is the final step before the courts are involved in the collection process. Experience has shown this step is particularly important as a form of exerting influence on debtors whilst still not hurting your firm’s relationships with its customers.
5. Legal action in insolvencies
We provide an effective mechanism to safeguard our clients’ legal interests if their debtors become insolvent. Our legal team has a wealth of experience with all stages of bankruptcy proceedings, including filing claims, communicating with bankruptcy administrators, serving on bankruptcy bodies, monitoring bankrupts’ asset sales, and collecting receivables.
Our company is also highly experienced in developing effective strategies to address complex issues and procedures at both the national and the regional level. We also provide assistance with restructuring and reorganisation efforts, always seeking to strike an optimal balance between the distress of a company and its future potential, where our legal team and business and financial experts collaborate with reputable external law firms.
1. Invoice management
For us, the collection process begins as soon as an invoice is issued. We sequence and monitor invoices properly from origination to maturity to ultimate collection. Communication with debtors throughout all stages of the process ensures timely and regular payment.
2. Early (’soft’) collection
We help ensure your customers pay their debts on time whilst maintaining relationships with them. We contact debtors by telephone and letter to offer a polite reminder their payment is due, advise them about payment deadlines and procedures, and inform them of the consequences of failing to pay. All communication with debtors is structured and follows scenarios prepared in advance that are based on the debtor’s area of activity, nature of the receivables in question, and circumstances surrounding the receivables. We adhere to the strictest professional and ethical standards of communication. We never make distressing telephone calls, disturb debtors’ neighbours or family members, or engage in any similar socially unacceptable conduct.
3. Pre-legal collection: payment notices
A formal notice is the final step before the courts are involved in the collection process. Experience has shown this step is particularly important as a form of exerting influence on debtors whilst still not hurting your firm’s relationships with its customers.
4. In-court collection
In-court collection is the final option where the preceding stages have failed to ensure the debt is paid. Companies are often reluctant to choose this course of action due to the overall state of the judiciary, procedural complexity, and high costs. Our team stands ready to help you overcome these challenges and, working with reputable law firms and professional enforcement officers, ensures collection in the shortest possible periods of time wherever statutory requirements are met. Our strategy always seeks to avoid legal action wherever possible in an effort to preserve relationships between clients and their debtors and minimise procedural costs. We seek to avoid enforced collection and are proud of the fact it accounts for fewer than 1 percent of the cases we manage.
5. Legal action in insolvencies
We provide an effective mechanism to safeguard our clients’ legal interests if their debtors become insolvent. Our legal team has a wealth of experience with all stages of bankruptcy proceedings, including filing claims, communicating with bankruptcy administrators, serving on bankruptcy bodies, monitoring bankrupts’ asset sales, and collecting receivables.
Our company is also highly experienced in developing effective strategies to address complex issues and procedures at both the national and the regional level. We also provide assistance with restructuring and reorganisation efforts, always seeking to strike an optimal balance between the distress of a company and its future potential, where our legal team and business and financial experts collaborate with reputable external law firms.
Frequently Asked Questions
How is the debt collection process initiated?
- The process is initiated by filing a lawsuit or a motion for enforcement based on an authentic document.
What are the methods of debt collection?
- Direct collection, legal proceedings, enforcement, mediation, and factoring.
How long does the debt collection process take?
- The duration of the process depends on the complexity of the case but can range from several months to several years.
What happens in case of a dispute over a claim?
- In case of a dispute, the claim can be resolved through legal proceedings or mediation.
What if the debtor goes bankrupt?
- In the event of bankruptcy, creditors are satisfied from the debtor’s bankruptcy estate through bankruptcy or reorganization.
Can I also receive interest on the debt?
- Yes, creditors are entitled to collect default interest if the debtor does not settle the monetary claim.
How do you collect a debt without a contract?
- Without written contracts, it is necessary to initiate a litigation process and prove the existence and amount of the debt.
What is an effective way to collect a claim without initiating a lawsuit?
- For effective debt collection without legal proceedings, a ‘pre-litigation warning’ is used, which often encourages debtors to fulfil their debts.
Does ODMC provide debt collection services through legal proceedings?
- Yes, legal proceedings are used as the final stage, with the support of a legal team and cooperation with law firms.
How does ODMC differ from traditional debt collection agencies?
- ODMC differs from classic debt collection agencies in its approach and methods. ODMC emphasizes ethical standards and professional communication, as well as tailoring the collection process to the individual needs of clients and the specifics of debtors. Additionally, ODMC covers all stages of collection, from invoice monitoring to legal proceedings, including handling bankruptcy cases. This comprehensive and customized approach distinguishes ODMC from traditional debt collection agencies.
ODMC operates in 6 jurisdictions in the Western Balkans - Serbia.
Highest
Creditworthiness
