Recovering Debt: Tools that Can Enhance Debt Collection

The current economic environment has triggered increasingly difficult challenges which have strained most organization’s resources and infrastructure. It is important for financial organizations to establish a debt collection strategy that will assist in reducing costs, maximize resources and save time. This is because it has become a priority for organizations to increase their cash flow, collector productivity and operational efficiency; the management process must also be streamlined.

Debt recovery tools are normally applied to increase collection of all delinquent debt. Furthermore, the debt recovery strategies involve organized plans of action that incorporate different collection tools that can be used by any organization to recover debt. Every organization has to meet statutory requirements within its credit policy. It is important to note that strategies for debt recovery can facilitate debt collection through offering a systematic, uniform procedure for collecting accounts.

Software for debt recovery is a system that is automated which is meant to be used by different organizations that recover debt. Software solutions like Tera CMS provide a collection process that is transparent in which a creditor can monitor the progress of the system throughout the recovery course. The solution provides an end to end approach to loan origination, with a holistic approach during the entire loan life cycle. It provides a structured work flow and supports multiple loan products with different origination channels. The solution easily integrates with other existing systems and offers a robust credit scoring engine and archiving for various loan application related documents.

Debt collection software like Tera CMS can assist an organization or any financial institution to become more organized and remain up-to-date with all the activities within an account. For instance, Tera CMS has the following features:

· Letters and Forms Management

Letters and forms are automatically generated in the system upon completion of certain task, e.g. loan approved or rejected. The solution integrates application data with pre-defined letter templates to automatically generate the letter. Letter templates can be prepared and easily changed in common word processors. Tera CMS forms help improve quality by reducing errors and better control by use of validation.

· Common Tables and Parameters

Tera CMS provides flexibility through a set of user-defined tables and parameters. Frequently changed variables are centrally kept in common tables and can only be modified by authorized users, thus ensuring control and enhancing security.

· Internal Credit Checking

The solution is designed to interface to the bank’s internal system thereby facilitating retrieval of existing customers’ information e.g. customer information file, credit card, loans system etc. When a user calls up the registration module and fills in the applicant’s details, the Tera CMS retrieves the customer information from the back-end system, if the applicant is an existing bank customer, and then populates this on the screen immediately. Information updated can also be uploaded to the back-end system.​

· Simple Application Status Enquiry

Tera CMS provides an integrated search criteria interface that allows users to make application enquiries. Using this feature, the solution provides information on which work step the application is pending at the moment, e.g. waiting for certain supporting document or waiting for loan approval.

In addition, the solution provides a work history and audit trail associated with each application. All the activities done on the application starting from when an application first enters the workflow until the end of processing are recorded thereby increasing transparency and accountability of the system.​

· Latest Technology

The System allows implementation of new business solutions faster by employing the latest software development approach of 3-tier architecture i.e. the graphical presentation, the application logic with the workflow engine and the database functions, all of which can separately run on different machines. The solution is Java based and works with any relational database management system which is JDBC compatible.​​

· Third party Integration

Tera CMS can easily be integrated with other third party applications for purposes such as credit rating and fraud analysis e.g. integration with CRB applications to get credit negative check. It easily integrates with other applications by synching the data from those applications and reusing it.​

· Comprehensive Reporting

Tera CMS provides a set of comprehensive reports such as loan progress reports, workflow statistics reports etc. In addition, the Tera CMS allows users a filter functionality that allows them to create reports that meet their own unique requirements. The solution can also work with third-party report writer tools to provide end-user definable reporting.

Recovery debt software can even provide preparation of negotiation plans, separating affordable monthly payments for each debtor. This can be very convenient option for a subject of debt, who cannot afford to settle the debt in full with one single payment. Depending on debtor’s monthly income and wage, the system will analyze and estimate the most convenient monthly monetary payment, which a subject of debt will be able to afford and clear the debt in full during a specific period of time