Debt Collection Companies Are Mostly Confused With What?

The control, acceleration and correct planning of cash flows of import and export companies is called receivable management. The receivable management service, which is widely provided in developed countries today, is becoming more active and known in developing countries day by day.

Receivables management services are provided by consultancy firms that are mostly specialized and whose main focus is debt collection before legal process with amicable ways. Receivable management companies provides services for the follow-up and debt collection process. This should be carried out regularly and strictly by an equipped and experienced team..

In particular, it is not clear for the most of people in Turkey what receivable managements companies in Turkey actually do. Your all questions will be answered with this article.

  • Receivables Management Companies Are Not ‘Call Centers’

Following up the debt cases in Turkey by phone is one of the effective part of our job but we have style on this. A consultant who is working for debt collection agency must have a high verbal abilities and must know the whole details regarding different business procedures. Most importantly phone conversations can not be based on a written text. The most effective action would be working with a proffesional debt collection agency in Turkey for the inquiries in Turkey.

  • Debt Collection Agencies Are Not ‘Debt Purchase Companies’

Debt collection in Turkey for pre-legal process; companies are authorized by their client for debt cases in Turkey that client would proceed with an proffesional company. They do not purchase the debts, they handle the cases on behalf of their client’s. The payments would be made to creditor’s company and debt collection agency would get his comission after collected payments.

  • Receivables Management Companies Are Not ‘Factoring Companies’

Debt Collection Agencies in Turkey provide their services directly to their client. Every determinant action on cases would be taken by the client’s confirmation. And also a Power of Attorney would be required while signing an agreement between both sides. Also debt collection agency would be needed once the debt is not paid.  

  • Debt Collection Agencies Are Not ‘Law Firms’

Receivables management in Turkey; sector is expanding day by day. In the world, this sector is called Inkasso. Inkasso companies (Debt Collection Agencies in Turkey) ensure that the problems between the creditor and the debtor are solved without going through the court process.

The main focus of the debt collection agencies in Turkey is to continue the follow-up and collection of the process by compromise before the legal process.

In this way, they aim to eliminate the loss of time and financial burdens that will be faced by the companies in the legal actions.

Law firms prefer to enforce debt cases in court but debt collection agencies believe that debt cases can be collection in prelegal stage. Same here in Turkey many cases has already solved with successfully in prelegal.

  • Functioning in the Collection Process

The working principle of debt collection agency is to move their customers to the optimum point they can reach by compromising their receivables.

In addition to the systematic and regular follow-up of receivables by expert consultants, if there is no result in this process, joint work is carried out with the law offices and lawyers with whom the business partnership is carried out, and services are provided in the direction of progress through litigation, which is the last option in the collection of receivables.

However, the first step that companies with receivables should take in order to correct their budget balances, increase their profitability and prevent customer loss should be working with a Receivable Management Company specialized in its field.

As ARS Consultancy our main mission is representing Inkasso sector especially in Turkey, by being the Turkish partner of GCS Group and official member of ACA International, IACC, FENCA, TCM (agent), CSA-UK and ALQ (American Lawyers Quarterly) and make companies raise their profitability by collecting debts in Turkey.

ARS Consultancy is just one phone call away to provide you the assistance you need. Call us now +90 212 296 9147 to get a free consultation. We are here to collect your receivables in Turkey and ready to offer best commission offers for our prelegal debt recovery which is NO RECOVERY NO FEE.

Emre Çöl
Director of Foreign Affairs | ARS Consultancy