Having undertaking recovery activities for most of the prominent entities in Ghana ranging from financial, leasing, insurance, petroleum and other key industries in the country, we have observed a common phenomenon that characterized bad debt portfolios in nearly all entities.
Even though debts written off as bad from the books of affected entities would have never been recovered, however ,EXPERTS CONSULT with its ethically trained staff, who are determined to maintain professional standard service delivery in all undertakings have recovered more than GHS12,000,000,000 in Ghana.
In our observation and engagement with most affected clients, we establish that, the driving force of bad debt in the books of entities are due to but not limited to the following; familiarity, Insider dealing, company assessment officers being bribed to produce contrary facts on the ground, failure on the part legal staff to invoke clauses in the agreement due to unethical pecuniary exchange.
It was astonishing to hear that some staff who have been engaged by institutions to carry out holistic review of credit and lease applications with objective minds rather negotiate with applicants on agreed percentage on the facility as indirect consultancy/ brokerage fee or better put “helping fee”. This according to the affected defaulters inhibit the purpose of the facility, leaving them with no option than to default and reorganize to face what they termed protracted burden in disguise.
EXPERTS CONSULT therefore delved into the sequential effects predicated on when the first step in the process flow if credit and risk assessment is missed and this is what we have to say;
Failing to assess credit/lease applicants in an independent and ethical manner means credits will be given to unqualified applicants, who then hijack the capital of the entity because they lack the muscles to amortize the facility.
This affects the liquidity of the affected entity leaving them with no option than to go for credit to meet their short term obligations.
Since debtors are not honoring their obligations the entity will be dehydrated from cash causing them to be in tight financial constrained with ultimate outcome of default.
This automatically affects the credit record of the entity.
Key personnel resigns due to uncertainty of job security leaving room for the company you have nurtured for years to be taking over due to unethical conduct of few employees.
It is imperative therefore to engage professionals who know the real facts on the ground and how to unearth concealed information when it comes to credit assessment to undertake your credit division functions so as to ensure consistent flow of cash per agreed terms with clients to meet your short term obligations at all time whiles concentrating on your core strategic areas. The choice is Experts when it comes to Credit Management.
The benefit of partnering with EXPERTS CONSULTs credit management.
At Experts, our tailor made services in the areas of Credit Management, Risk Assessment, Collateral And Project Viability Valuation, Credit Risk Analysis and Debt Management will give you competitive edge as time that would have been spent mapping up strategies to chase delinquent defaulters will go into formulation of strategic plans and business development methodologies.
Due to the nature of our work, we have experts in areas of FINANCE, LEGAL, PROPERTY VALUATIONS, ASSURANCE DEPARTMENTS, and TASK FORCE. In this regard we have consistently deliver our services in such a professional manner and so far we have not witnessed a default both in the portfolios we are managing and the clients we assessed and recommended that credit facility be given.