I asked kristjan directly and he says that the debtor is contacted but no reply yet (as it is a huge Company and processes Need some time...).
Hello all, A lot of companies outsource accounting services and even the ones that don't can sometimes be difficult to contact when the client relationship has just started. We try to get a concrete contact person in place to make sure everything is handled promptly. Because it was this debtor's first invoice on our platform, we hadn't yet had that opportunity. In any event, the invoice has now been paid, but unfortunately to the seller's account and with a cheque. What does it mean for investors? It means that investors will receive their funds by the end of the week. Overdue fees will of course be added to the principal and interest. We are sorry for the inconvenience and will make sure all parties adhere to the factoring arrangement requirements in the future.
As there are no new invoices to invest, we as investors, should be thankfol for the delay, as our money stays invested and we will be compensated for the delay
At least you see the humour in this. Fortunately the vacation period is ending, which will make it easier to reach new customers. We also have a number for customers signed up from earlier on. A lot of companies sign up before they actually need the service so they have their accounts set up by the time they do need us. I'm sure some of them will reach that stage in early September.
As an investor, I would love that you contact them even without our questions on the overdue status.
Could you please elaborate on how you manage overdue invoices and what steps at which dates are taken by your team to ensure full repayment?
We keep contact with customers as often as needed. In this case we know the customer was waiting for the cheque to clear and we decided to wait until the end of the week (i.e. today) before asking for an update. We have a collection table that we monitor and we make contact as soon as it is needed.
With overdue invoices we contact the seller first and ask them for an update. In some cases the funds have been erroneously sent to their account (happens with debtors who are new to our service). If needed, we also contact the debtor. If and when the debtor is unable to pay, we do a full recourse - i.e. ask the seller to repurchase the invoice in full. This hasn't been necessary so far. For smaller companies we also ask for a director's guarantee (from the seller company) to ensure payment.