Collect debts at the click of a mouse â€“ introducing a new foreign debt collection solution
It is an all too familiar scenario for every entrepreneur: the service has been provided or the goods have been delivered to order – but your business partner fails to pay. Worse still, they are also based in another country. What to do?
Payment terms, limitation periods and case law sometimes differ substantially in other countries. There are also cultural differences when it comes to contacting debtors, even if the creditor is based in Germany and the debtor is in Austria. Whilst the appropriate response in Germany today would be a short and businesslike reminder, a business partner over the border will expect a polite, restrained approach and above all, patience.
If creditors are unaware of these cultural differences and behave in a manner considered inappropriate by their business partners, this may cause long-term payment problems. But when payment difficulties arise, companies often fail simply because they do not know their debtor´s language and cannot contact them appropriately about an unpaid invoice.
A collection solution with no cost riskWhile most companies would have thrown in the towel and simply written off their outstanding debts in the past, the “Auriga Credit Network” now offers them a new opportunity to enforce their claims – appropriately, quickly and above all, without having to incur a cost risk.
AURIGA has developed a simple, web-based solution for this purpose. Creditors register their outstanding claims on the AURIGA web portal, then reliable collection partners in the target countries provide their services.
If both sides agree, a business transaction can be made in just a few clicks of a mouse. The principle works even if the creditor and contractor speak different languages; the underlying software allows each of them to communicate in their native language.
No cost risk or investmentAURIGA sees itself as a gateway to international credit management. It can be accessed from any computer simply by using a web browser – so there is no need to invest in software. The designers have made the portal clear enough for any client to use it with ease.
Those who wish to offer an unsettled claim should register at www.aurigacreditnetwork.com as a creditor. In the “debtor” field they can then provide information about the claim, i.e. the name and address of the debtor, as well as information about the receivables category and due date. Besides the principal claim, detailed information can also be provided about the ancillary claim, such as the respective reminder charges and creditor´s expenses. There is also a calculator function to determine the interest accrued to date.
Once these details have been provided, AURIGA presents the client with a list of available collection partners in the respective target country, i.e.: collection companies, credit agencies, credit management companies, factoring companies, lawyers or detective agencies who offer their services via the portal. Symbols indicate whether each partner is a member of an association that monitors proper debt collection. This means that AURIGA can ensure reliability, because partners who register with the company are automatically subject to the code of conduct of FENCA, the European federation of collection associations.
Communication from a single sourceCreditors can now select a suitable partner from the list and assign a job directly. Alternatively, they can click on the “Request quotations” field and invite all the partners on the list to bid for the specified claims. Within the next few days, the creditor will receive a number of quotations to choose from. Communication takes place via an internal mailbox system in the personal area of the website. Using this system, creditors can conveniently assign their jobs at the click of a mouse and in a very short time. All the details of the quotation are stored in the messaging system and can be retrieved at any time.
The affiliated collection partners in the respective target countries can also directly accept offers received via AURIGA using the web portal. The portfolio of receivables for collection is stored internally in the collection operations area, which is used for processing. Creditors can view current progress reports on the collection process here. The partners are required to keep this area up to date at all times. All the relevant documents for the collection of receivables such as delivery notes or copies of invoices can also be conveniently uploaded here by the client and accessed by the partner. Once the process is complete, the partner also uploads its bill for transmission to the creditor. The collected sums are transferred directly between the two parties.
Reliable and secure – even as an in-house solutionThe web portal can also be integrated into business processes as an in-house solution, so companies can manage all of their receivables from their own desk. AURIGA supplies the companies with interfaces for established ERP systems. The portal is password-protected and secured with the latest encryption methods.
All the data are safely stored in an external data centre, with a telephone hotline available in case of problems. Besides collection orders, the service also includes other supporting functions such as address research and receivables financing products.
“Auriga Direct” full-service solutionThe new “Auriga Direct” function refers to a full-service solution whereby AURIGA spares creditors the need to search for a suitable collection partner and takes on the job directly.
This service is initially available for Germany, Austria and Switzerland.
AURIGA takes charge of the collection case itself and forwards it to the appropriate collection service provider.
In Germany, “Greif Inkasso” of Dachau is AURIGA´s exclusive partner. The long-established company has been on the market since 1949. Its managing director Stephan Jender was President of the Federal Association of German Debt Collectors (BDIU) from 2004 to 2008.
Clients in Austria enjoy the exclusive support of experts from “Universum Inkasso” of Graz. The company belongs to the Austrian Debt Collection Association (IVÖ), which guarantees the reliability of its members in the same way as the BDIU in Germany – a crucial factor for creditors who decide to cooperate with a collection partner.
In Switzerland and outside the DACH region, the AURIGA head office itself handles the orders placed via the full-service solution. The advantage of this variant for clients is that they no longer have anything to worry about. They simply enter the information about their claims using the form on the AURIGA web portal. There is no need to compare quotations. All they have to do now is wait for confirmation from AURIGA, so they can recover their outstanding claims with minimal effort. If successful, the AURIGA partner will retain a small percentage of the claims.
About AURIGAThe Auriga Credit Network was founded in Switzerland in 2012 by Luigi Di Cerbo and Olaf Pauls. Both have more than two decades of extensive practical experience in receivables management. As a lawyer, Di Cerbo began his career in the 1980s at the Swiss office of the international debt collection agency, Intrum Justitia. After holding several positions at other companies in the sector including Deltavista AG, in 2009 he joined ScoreControl AG and has been Chairman of the Board of Directors and majority shareholder ever since. His business partner Olaf Pauls, also from a legal background, is an IT expert on receivables management solutions. In the 1990s he developed software for collection agencies in Germany and took charge of its distribution. He
became Managing Director of ScoreControl AG in 2003. The network places collection orders worldwide and unites creditors with suitable
collection partners. More than 500 partners in 100 countries are already on board. Based in Switzerland, AURIGA has had offices in Germany and Austria since 2013. It is currently seeking franchise partners for additional offices in Europe and on other continents, which are planned for 2014.
How much does Auriga cost?Clients can use Auriga free of charge. Anyone can register and place orders without paying fees. Costs are incurred only by the collection partners, who pay 1 per cent of the outstanding amount – a minimum of CHF 2.50 and a maximum of CHF 50. Clients also receive a bonus from Auriga of 10 per cent of the partner´s acceptance fee for every collection and research order accepted. So creditors enjoy a double benefit: firstly by placing an international collection order and secondly by sharing directly in Auriga´s turnover.
How many partners are there?More than 500 partners in more than 100 countries are now on board. The portal has outstanding international connections and is a member of both the European federation FENCA and the global Association of Credit and Collection Professionals (ACA).
Who uses Auriga?Most of the creditors who place orders via Auriga are involved in finance, insurance, logistics or the export business. Auriga is also of interest to any company with business partners abroad that wishes to place collection orders. Is it only possible to place single orders via the portal, or are there also solutions for receivables portfolios? Auriga has created an interface for the transfer of large receivables portfolios, so bulk collection can be ordered conveniently and securely.
Can I also place domestic orders?Yes. In this case Auriga will offer the receivables to various collection agencies in a national pitch.
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