How to implement a collection strategy in Morocco?

How to implement a collection strategy in Morocco?

In a tense economic context, implementing a collection strategy in Morocco to reduce payment times is more essential than ever to secure the company’s cash flow.

1. Challenges of a recovery strategy in Morocco: freeing up cash

Inter-company credit is   the primary source of financing for businesses. For the latter, it is therefore impossible to develop by only offering its partners  cash payment .

However, granting  payment deadlines  must not conversely lead to cash retention or  excessive recovery costs  . Because one in four business failures is caused by  late payment , the creditor company must:

  • monitor customer outstandings  ;
  • implement a  balanced recovery strategy in Morocco.

2. Collection strategy: anticipate late payment

An  anticipatory , transversal and sustainable  recovery strategy optimizes the recovery of receivables  ahead of the due date, even before unpaid debt  becomes apparent. This is pre-covering.

Managing  customer risk  involves several actions:

  • study of the solvency of prospects and customers;
  • negotiation of  dissuasive commercial clauses  ;
  • quality control of the  invoicing process  ;
  • early management of disputes .

Far from deteriorating  customer relations , getting customers used to a sales process that is both firm and open to dialogue will in fact project the image of a good manager and serious partner. Trying to facilitate compliance with the schedule in advance is a solution that is too often neglected.

In the event of  proven payment default  , the  recovery strategy in Morocco  aims to obtain a payment commitment  from the defaulting customer, without sacrificing the  commercial relationship .

3. Gradual recovery strategy: from amicable recovery to legal recovery

The pre-litigation phase aims to understand and resolve the reasons for  non-payment  :

  • management of possible disputes;
  • establishment of a  payment schedule  ;
  • etc.

The final stage of amicable recovery after  telephone and written reminders  and any visits, will be the  formal notice .

Finally, if no solution emerges, the company will engage in a legal recovery process. Due to their cost, so-called long procedures will nevertheless only concern large debts.

Certain accelerated avenues of action, such as an order for payment , will be possible for debts not giving rise to any serious dispute, that is to say whose existence is incontestable. These legal actions will aim to obtain from the judge an  enforceable payment title  which must itself be followed up by a bailiff.

4. Recovery strategy and outsourcing of customer risk management

The company can decide to outsource  customer risk management  to different players:

And this, from the  amicable recovery phase  or during the legal phase. Outsourcing recovery  will prove particularly interesting in the case of  foreign debtors .

Alternative solutions such as the  mobilization of receivables  will make it possible to  transfer the customer risk  associated with a receivable to a third party, while optimizing its cash flow.

Factoring also constitutes an essential short-term financing solution for certain companies.

Although  invoicing software  allows you to  track the payment of your invoices and customer reminders  , they are insufficient when a  payment is unpaid . In this case it is necessary to resort to a finance and accounting solution  or a collection agency . In the first case, you will be completely independent in recovering your  debts, your invoices, or your unpaid rent . In the event of difficulty, specialized lawyers control the legal stages to speed up the proceedings.

Contact us here for more information about this software.

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