I’m not saying that you should never outsource your debt collecting. I think you should definitely hand the debt over for collection once you’ve exhausted your internal debt collecting overseas debt collection. That’s when you need a specialist. But not before. There are enough good reasons for keeping it in house as long as possible.
You see, getting-paid for the work you do is a core function. It’s the equivalent of breathing for businesses. Setting up an internal debt collection process is not hard. Technology has made it possible to follow up on unpaid invoices at very low cost and without spending hours on the phone.
Most of us collect debts badly because we’re too busy. It’s also not fun so debt collection gets put off. We struggled with late payments and poor cash flow until we built an automatic debt collecting system.
It’s not outsourcing. It’s a tool to save you money on your internal debt collecting processes.
It’s really quick to set up. You can start collecting outstanding debts within minutes of signing up. It works with any accounting package (even a pen and paper ones), so you don’t have to change the way you work. It only takes a few moments to enter the invoice. After that it’s all automatic. The system will send a series of gentle reminders to your clients until their bill is paid. Because the system is completely automated it you don’t have to squeeze following up on unpaid debts into your day or hire someone to do this.
As of 2016, the Kenyan Government Debt equivalent to the Gross Domestic Product was 55.20% from 38.2% in 2012, representing a steady 17% increment since 2012. Debt-to-GDP ratio is a country’s government debt (amount) and its Gross Domestic Product (years), with 60% being the accepted barometer (E.U standard criteria), meaning the National debt should not go beyond 60%. Making us believe the Kenyan Government Debt Ratio is somehow sustainable but the steady increase over the year’s means we are on track to surpass the 60% mark.