Business challenge:

We don't have a thorough credit application.

Accountability response:

We have an extensive credit application that you can download for free.  You would pay between 5 and R15,000s if you went to a lawyer.  You can download it for free.

Business challenge:

Some clients don't want to or refuse to sign surety.

Accountability response:

As always, every negative is an opportunity.  This is an IDEAL opportunity to build customer relationship.  It is the ideal time to look the applying-for-credit client in the eyes and ask if they expect you to take the business risk of giving that specified amount of credit without signed surety.  Explain that your business could take a knock of a few thousand Rands but definitely not for that specific amount of credit applied for.  Ask if they would take the same risk on you.

 Is it vital to get signed surety so that if the business defaults on their payments, you are able to list the company AND the individual.  No more can the individual say that their company can't pay, but that person can finance their next vehicle or continue trading while neglecting their debt to you.

Business challenge:

Is it right to check anyone's credit activity at any time?

Accountability response:

Legally, you need their permission.  The most important goal of any business is to stay in business, which the authorities know.  One of the safest ways to ensure positive cash flow is to minimize bad debt.  The most objective way to prevent bad debt is to check a business entities credit record. At this stage there is a general awareness that credit checking gets done, so it is mostly not a problem.  Very occasionally an individual will get defensive, but that is exactly the client you don't want.  To be on the safe side, we do recommend that the business entity give consent to do credit searches.  Consent can also be verbally asked for and given as a means of ensuring transparency from both parties. 

Due to various factors clients use more and more credit and the credit limits get exceeded.  The credit limits slip.

Accountability response:

We nearly beg our clients to get signed surety and to refuse credit limit slippage.  When a client oversteps their credit limit, it is a perfect opportunity to get the client to sign the updated credit application with an increased credit limit -  and the ideal time to get signed surety.

I know of someone who was listed on the credit bureau incorrectly. Surely the system can be abused.

Accountability response:

Thank you very much.  As I say on my website €œThis is an ethically sensitive issue€.  Unfortunately the system can be abused and we have to trust our client that is will not be abused.  There are terms and conditions within which business entities can be listed and when people accept these terms and conditions (each time they use the Accountability website) we assume that the credit bureau will be used ethically.

Business challenge:

I don't have the time to implement another system.  My staff are already stretched to their maximum.

Accountability response:

The Accountability system is extremely easy to use and very little time is required on the internet to use our tool.  The most time consuming work is typing in the details of the bad payer.  Thereafter all transactions are a matter of clicks.  There is no software to download and the internet interface is self explanatory and easy to use.

Business challenge:

Clients ignore our final demand letters and some are even arrogant enough to say 'Sue me if you want'.

Accountability response:

Why would unethical clients respond to your final demand letters?  If you threaten to hand over the account to lawyers than they can wait for that next letter from the lawyer, they can then wait for a court date, they can then dispute the claim, they can then not pitch up in court and when they finally loose the case they can plead poverty and promise to pay R50 per month.

 With the process of list default payers on the credit bureau the warning letter stipulates a definite date on which they will be black listed.  This definite date is not negotiable and they will face the consequences if they don't pay before that specific date.  For that reason, our letters are often more effective than a lawyers letter.  One of our clients was delighted that he now has an online lawyer.

 The Accountability sticker, to be put on invoices and or statements, is a powerful awareness tool and makes bad payers think twice before they pay slowly.  The squeaky wheel gets oiled first, so a verbal warning and the sticker is a strong awareness tool €“ creating awareness that you are serious about business and getting paid on time.

Business challenge:

People don't mind being listed on the credit bureau.

Accountability response:

We cannot promise the world.  If a business entity has been listed 5 times, they couldn't care about being listed another time.  Or if the client is a cash only client they will not need a clear credit record.  In most situations, there is enough public knowledge that one does not want to be listed on the credit bureau.  In general, a business entity wants the flexibility to be able to get a business load, finance a vehicle, get a bond and be able to open a Vodacom contract.  There are enough nightmare stories of how people took weeks and months to get their name of the credit bureau.  In general, people do not want to be listed on the credit bureau.

Business challenge:

We can't do anything to bad payers, even if bad payers have signed an acknowledgement of debt and have promised to pay R50 per month.  They even default on that amount.

Accountability response:

With Accountability you now have a tool to keep them listed on the credit bureau while they finish paying of their outstanding debt.  You can even play good-cop-bad-cop and say that Accountability needs to keep you listed until you repay your outstanding amount.  This will prevent them from going on holiday with your money etc. etc.

Some of our clients have disappeared and the warning letters will not get to them.

Accountability response:

The credit law specifies that a written letter needs to be posted to their last know address.  Anything more than a posted letter to them is a kindness to them.  If they have moved away it is their unethical behavior and they need to face the results of their unethical behavior.  You still need  send the letters to the 'last known address' to ensure your legal compliance.  At some stage they will find out that they are listed by you and they will have to face the music, clear their names if they want credit of any kind.

Business challenge:

We don't have their ID numbers so we can't list them on the credit bureau.

Accountability response:

The first defaulters or warning letter does not need the ID or the Company registration letter.  When you list the default payer on the credit bureau you then definitely need the ID and Company registration letter.

Business challenge:

Some people don't react, full stop.  Even when people receive the 'You have been listed' letter, they don't respond.

Accountability response:

For the reasons mentioned, we say that we reduce bad debt.  Sharks will be sharks, but be assured that they will have consequences.  We have some of our clients being refused credit and then settling debt after 2 years.  If there is no response to your listing default payers, we suggest you do an Accountability consumer trace, use our lawyers and if need by, use a debt collector.

Business challenge:

Lawyers are a waste of time and money.

Accountability response:

Fair enough.  Lawyers put your file on the priority ranking of how much money there is to be made.  That is why we have partnerships with lawyers that specialize in debt collecting and that are willing to work on a loosely contingency basis.  (no collection, no fee).  Notice that we do not say, co collection, no pay, because they pass on any out of pocket expenses to you. Any expenses, such as postage or a sheriffs summons fee, any out of pocket expenses to them, they will pass on to you, but they do not get their fee if they do not collect any money for you.

Business challenge:

We feel bad that we need to harass our clients for money.

Accountability response:

The business owner needs to accept the paradigm and also install it into the staff, that once product is received or service delivered, it becomes your money.  You are now collecting your money.  They cannot do anything that they choose to do with your money.  Anything they do before they pay you is being done with your money.  This paradigm assists collection staff in being assertive to collect your money.

Business challenge:

Only a few of my bad payers call me back after they receive their defaulters / warning letter?

Accountability response:

There are only four reasons why people would not investigate a defaulters letter to prevent being listed on Trans Union credit Bureau and Accountability:

 Firstly, if a defaulter did not receive the warning letter, there would be no response.  The NCA (National Credit Act) requires that a hard copy letter be sent to the 'last known address'.  If the person gave you a fake address to start of with or they have moved since the adverse payment, it is their unethical behavior and they still need to face the consequences of their actions.  They need to be listed on Trans Union.  If they moved, ethically they should have informed their creditors of their new address. If the default payer does not receive your defaulters warning letter, you have adhered to the NCA requirement and they need to face the lifelong consequences of being listed on Trans Union.

 Secondly, if a person has that much money that they will never need the flexibility of credit in the future OR they do not knot the effect of being listed on Trans Union, they may ignore the letter.  Truly wealthy people do not normally make debt and most truly wealthy people do not want any 'mark' against their name, no matter what the mark is.

 Thirdly, if an individual and or their business entity is in such trouble that they really can't afford to pay anything, then the may out of embarrassment not contact you.  An ethical poor man will contact their debtor, even if it is to inform their creditor that they can't make the payment, however embarrassing.

 Fourthly, the default payer may think that this is just another warning letter which will not be followed up by the actual threat.  They may think that you and your business entity are such nice people that you would never list a person.

Business challenge:

I thought that a person could not be listed on Trans Union unless that person had a judgement against him/her.

Accountability response:

Firstly, there is a difference between en entity being listed as a defaulter and being listed as having a judgment against the entity.  You are right, the legal process has to run it's cycle and has to proceed the entity being 'listed' as having a judgement on their Trans Union report.  In the Accountability 'process' of being listed as a default payer, the legal process does not have to be followed.  The Accountability client has the business power / ability to list a default payer as a default payer on their Trans Union record.

Business challenge:

This sounds like too easy.  Can anyone list and un-list anyone?

Accountability response:

 You are right, the system is open to abuse, but we have to enter into a risk situation that we are dealing with ethical companies.  Two aspects are pertinent here.  Firstly, the law stipulates that only the business entity that lists an entity can 'unlist' that same entity.  For instance, if ABSA lists a bad payer, then only ABSA can remove them as a default payer.  This means that only ABSA can instruct Trans Union to remove the listing of the bad payer on Trans Union.  So, Accountability client have the ability to 'list' their default payers and only that specific Accountability that listed that particular debt can 'un-list' the entity from that particular debt.  An Accountability client cannot un-list a person for a default payment of another listing-enabled-business and not even for a default listing entered by another Accountability client.

Business challenge:

I am listed due to extenuous circumstances.  How do I 'clear' my name so that I can do business?  No business will give me credit and no bank will give me a business loan.  I am hitting my head against a well.  What do I do?

Accountability response:

If a bank has listed you, then only that bank can instruct Trans Union to 'un-list' you €“ remove you as a default payer of off Trans Union.  Alternatively, you can pay the default amount, get proof of full payment from the offended party and present it to Trans Union.  Trans Union  is then required to remove that default payment listing.

The only other way is to go to the creditor, acknowledge the debt and make installment payment arrangements, get a request to remove you from the offended party requesting Trans Union to remove the default payment record.  Creditors are typically fair minded when a business entity acknowledges debt, makes payment arrangements and requests to continue doing business.  This is especially true if the default payer will make timely payments and continue buying cash from that supplier.

Trans Union is an accredited information supplier and such open and honest communication deserves to have the credit world informed of such actions.  Such individuals should be rewarded for such honest and bold actions and not punished further.  Most fair-minded business owners can acknowledge 'extenuous circumstances' and are prepared to 'what goes around, come around', give and take happen to them.  Obviously there are business limits determined by each business owner, but most business owners are fairly good jugglers in terms of relationships, finances, etc.

Business challenge:

This Trans Union credit reporting is over rated and like many other information systems are outdated and useless.  What guarantees are there of accurate and recent information on Trans Union?

Accountability response:

Any database of information, is only as good as who updates it, how regularly it gets updates, how big and accurate the information input is and who extracts information from the database.  Trans Union is one of the two largest credit activity databases in South Africa.  The banks and most larger credit services all consult the credit activity reports before making business critical lending decisions.  Accountability now brings the power of major credit institutions to the SME level.

Business challenge:

This Accountability tool is just another admin process and I have had enough of admin.  I already have enough on my plate and don't time for another process. 

Accountability response:

Fair comment, until you understand the value add that we bring to your creditor chain.  Firstly, we have made it a paperless system as far as possible.  Searching Trans Union online, getting instant results, while a customer stands in front of you is a major benefit in making credit and incidental credit decisions.

In terms of the Accountability default payment, warning, listing and delisting process, there are four major benefits.  Firstly, we make it a paperless process.  Accountability does not need proof of your invoices etc.  You don't need another file to track your Accountability-defaulters process.  Secondly, we optimize the legally required notice period before listing for you, or you could say we project manage the warning / listing time process for you.  After the legally required 28 days, we send you an email asking you if you have been paid.  If not, log in, click on the defaulter, add the ID number etc. and you list the person as soon as possible for as soon as possible payment results.    Thirdly, we make the process a matter of clicks, not having to duplicate form information at each step of the process.  The Accountability listing process automatically completes forms B and C for you at the click of a mouse.  Finally, as a glance ('op die oog af') you can see the status quo of your whole outstanding debt book.  For each defaulter, the Accountability system displays a green tick in each clients Form A, B or C box, indicating exactly where each client is.

These are hidden benefits that only come to light if our clients realize the convenience and give it some thought.  It is no wonder that we get positive feedback about our system.

Business challenge:

I have sent out a warning letter to some clients and then they have paid me in full.  What do I do now?  Do I now need to un-list them?

Accountability response:

The 'Form A Non-Payment' online form generates the 'warning' letter being sent to your default payers.  At this stage you have not listed them yet, so if they pay you in full, you do not need to un-list them.  (Excuse my obvious statement, but you can't un-list them if you have not listed them yet).  To make sure that you don't list them in the future by accident or to clear up your 'at-a-glance' Accountability online listing process, you may want to use 'Form C Remove from Database' which costs you nothing.  The green tick will then obviously move to the box underneath Form C. 

Business challenge:

I am already a client of ITC.  Why should I use your services?

Accountability response:

May I say that Trans Union is our business partner and that we are not in competition to each other, our services rather compliment each other.

 Good question.  We would like to meet with you to discuss this matter.

Business challenge:

Who are you competitors?  How do I make an in informed cost-value business decision about Accountability?

Accountability response:

To be honest, there are no real competitors.  In life, like on the internet, no-one and everyone is competition.  Attention for time to get to know about the product, budget constraint, time to get trained on the system and time to maximize the ROI (return on investment) all compete against Accountability.  Our product is in a class of it's own, it is a niche market product and most business entities  need our value bundle at our price.

To get to a near satisfying answer:   CGI (Credit Guarantee Insurance) typically insures 80% of a companies debtor book.  The other 20% they don't touch.  Accountability enters into that 20%. We do not insure a companies 'book'.  Say no more.
 

Business challenge:

We use debt collectors.

Accountability response:

We know that we can save you money before you use debt collectors or lawyers because they both require a percentage AND because small amount often receive little or no attention.

Business challenge:

We have lawyers.

Accountability response:

Wonderful. We introduce our clients to our special-service lawyers if they need them.  If our client have a working relationship with lawyers, then we encourage them to continue that relationship.  Once again, we are sure that we can save you money by listing default payers on the credit bureau before you start the legal process.

Business challenge:

We use Credit Inform.

Accountability response:

Credit inform is a great product which costs many, many times more than our product.  Their silver, gold and platinum reports are for companies where money is no objects and where multi-millions of credit is required.  Their reports are very extensive and they even go so far as to call current suppliers to get reports of their applicants current credit and payment history.  More and more companies are reluctant to give such information, because it may jeopardize their own business.  Our product offering is for the small to medium business and has features that Credit Inform does not have.

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