CRDT specialises in credit management and offers specific concepts for different industries. In total, the Arnhem-based company supports 500 companies within the EU. In addition, CRDT has a branch in Germany (as the main trading country for the Netherlands) and support points in Belgium and Denmark. With the MODINT Credit & Finance label they are credit management specialists in the fashion, carpet & textile sector and is the market leader in the Netherlands in this field. Based, among other things, on a database with payment experience of 200,000 customers in the EU, MODINT Credit & Finance offers customised solutions in areas such as debtor management, collection and credit information.
Charrel, why is debtor management so important for a business?
Charrel: 'Every company wants to receive its money as soon as possible, that seems obvious. With a positive cash flow, you can meet payment obligations or make investments yourself, for example. In addition, with good credit management, you prevent possible disputes. If you meet all your obligations yourself, for example in the area of of fulfilling the order and good deliveries, but also timely and adequate starts with payment reminders or calls to customers, you are always in a strong position when it comes to (legal) collection. Although, in our opinion, you should always try to avoid that.'
How is the average debtor management of Dutch companies?
'Let me put it this way: things have thankfully improved a lot in recent years. The days of classic manual work and filing cabinets with papers are over. Increasingly, debtor management is being automated. That offers opportunities, because you never forget a deadline. On the other hand, there is also a danger in this, because debtor management remains human work. You can send an automatic reminder, but how do you know whether it will be read? It's better to call your debtor. If this is in the debtor's language then the chances of a payment are a lot higher. The question is also: how do you deal with a dispute or complaint? What do you do if a debtor cannot pay? We find that many companies still struggle with that.'
What do companies find difficult about debtor management?
'First of all, it still gets too much added, which means companies are not always short on time to remind debtors of payment obligations as early as possible. In addition, not everyone enjoys doing it. Logical, because you don't always have the most pleasant conversations. We also notice that companies find it difficult to strike the right tone. Literally, because they do not speak the language of their foreign customer. But also figuratively. Not everyone knows how to approach such a conversation properly or dares to ask critical questions about the reasons for non-payment. And honestly: that is also difficult. Often you also want to keep your customers happy.
You do ask those critical questions?
'Certainly, that is our job. Those who outsource their accounts receivable management to us can rest assured that we will ask positive-critical questions and filter and double-check information. A well-known anecdote within our company concerns a company that gave road works in its shopping street as the reason for non-payment. As a result, its customers stayed away. We called a pharmacy in the same street and asked how exactly the roadworks were going. These turned out to have been completed three months before. Yes, so then we went back to that debtor. You have to dare to do that, besides putting time and energy into it. We don't do anything else. Good debtor management stands or falls with the right tone. And we can strike that tone.'
What are other benefits of outsourcing receivables management?
'Besides speaking the right language and asking critical questions, we detect potential problems early on. In doing so, we always look at what can be done. Collections and other proceedings are what we want to avoid the most. Based on our knowledge and experience, we can often come up with solutions that are acceptable to both parties - and therefore good for the mutual relationship. Another advantage of outsourcing is that, as a credit management organisation, we have a large database with (international) debtor information. We can see whether a debtor has payment problems only with your organisation or also with other suppliers. We can also quickly identify whether payment delays throughout the chain could lead to problems.'
Companies do put important and sometimes sensitive information in your hands
'That's right, so cooperation must take place on the basis of trust. I always tell relationships: keep in mind that we can also get back less pleasant information about you from customers and suppliers. For instance, about the quality of products, the way we communicate or something like that. Not nice to hear. On the other hand, although we do work for one party, we are more objective and neutral. As a result, the message only reaches the company indirectly and therefore less harshly. And in the end, organisations can mainly benefit from the things we hear. We think about that too.'
In what respect do you collaborate with Xolv?
'We have been trusted partners for many years. Xolv is strong in credit insurance and financing. It often happens that Xolv offers a company good credit insurance with good, suitable conditions and that the operational part of debtor management or collection is placed with us. We take a preventive approach and ensure that the insurance offered by Xolv needs to be used as little as possible. That is best for the customer. Xolv accommodates clients with both MODINT Credit & Finance and CRDT. Through CRDT, we jointly help companies in logistics and other industries, among others. This has been going on for years to the full satisfaction of both parties.'
We thank Charrel van den Bovenkamp for his views on debtor management. Would you also like to explore the possibilities of outsourcing debtor management? We talk to you graag at. Also take a look at our special page on debtor management.
