Integrating Debt Recovery among SMEs with Negative Listing

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The idea of managing credit risk is not only through tougher credit control but also by providing reliable receivables management. We are exposed to credit risk when doing business and aggressive competition may sometimes make us more lenient in our credit control process. SMEs are getting more vigilant and recognize the importance of credit control and debt recovery to manage their cashflow challenges.

There is no right or wrong procedure in handling credit control as it depends on the nature of business that you are involved.

Increasingly, many SMEs are engaging negative listing as a debt recovery strategy. This is an alternative way to recover from debtors where the cost to recover through legal means is not justifiable or sufficient. As a result of negative listing, it encourages payment from the debtors who want and need to have their names removed from the lists to remain its reputation and credibility.

What is Negative Listing?

Negative List is part of an integral solution in recovering debt in SMEs' market. It is a list that will appear on credit bureau reports to show debtors who refuse to make payment. Once debtors have been listed in the Negative List, bad debt records will be visible to banks, financial institutions and other members. The method of exposing bad debt records asserts more pressure on debtors who refuse to make payment and take debts for granted.

Many companies are recognising negative listing as a valuable tool and strategy for credit controllers to recover bad debts without exercising or incurring high legal fees. Supporting companies and businesses to recover bad debts, DP Information Group makes the necessary arrangements to make known and explain to bad debtors the severity of negative listing and how it will affect their reputation and credibility. Therefore, many of the SMEs would decide to make payment to avoid gaining a bad business reputation.

If you would like to know more regarding Recovering Debts and Negative Listing among the SMEs, please contact smecb@dpgroup.com.sg.