Driving Success, Generating Liquidity

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> Receivables Management Driving Success, Generating Liquidity > Debtor Management > Debt Collection > Bad Debt Insurance > Factoring

Build on proven competence and experience to get your money. Open receivables bind capital as they have to be financed. A high volume of receivables dilutes the key balance sheet figures and effectively poses a considerable risk of default. Consequently, the optimization of receivables management is increasingly becoming a critical success factor for companies. The following calculation shows just how much additional turnover is needed to compensate for bad debts. How much do bad debts really cost? Sales Return on sales Profit Bad debt loss rate (%) Bad debt losses ($) $1,000,000 2 % $20,000 0,5 % $5,000 Conclusion To make up for bad-debt losses of $5,000 with a 2% operating margin, a $250,000 (25%) increase in sales is needed. Creditreform offers a holistic, customer oriented and in particular efficient receivables management portfolio. Customers who use Creditreform s modular services not only protect their businesses, improve liquidity and reduce interest costs, but also have more time to spend focusing on their core activities. In close cooperation with its customers, Creditreform develops solutions optimally aligned with their business models unique situations, thereby maximizing the efficiency of its customers structural and procedural organization. Holistic, one-stop receivables management Functions Liquidity supply Crefo Factoring Safeguards Process support Degree of default Creditreform deptor management Within payment deadline Crefo credit insurance Pre-trial debt collection Creditreform debt collection Summons procedure (trial) Compulsory execution Payment default Title monitoring

> One-stop receivables management Creditreform offers a comprehensive, holistic, endto-end receivables management portfolio which, with its optimized process and system support, soon makes itself paid in the form of prompt and successful debt collection. Competent support from Day 1 Asserting your rights For Creditreform, receivables management doesn t start with the onset of debt collection, but already in debtor management, where we support your business processes with intelligent solutions and competent consulting. If a payment is not made on time, our summons service will automatically initiate a stringent dunning run. Ever conscious of the value of your customer relationships, the content, tone and communication channels are agreed with you for each process step beforehand. Should your customer still fail to pay despite the reminder, and with your consent, we ll continue to track your outstanding receivables in our Full Service Debt Collection program after expiry of the agreed payment deadlines. Should a debtor fail to respond to all our non-judicial efforts, we then agree with our customer on instituting judicial summons procedures including any necessary compulsory execution measures. Our mextensive know-how and many years experience in dealing with debtors and debt advisors position us to fully exploit your legal options. % / The longer the wait... the higher the costs! Increasing write-downs and charge-offs Increasing costs caused by higher collection overheads Probability of failure of the receivable More liquidity with the Creditreform summons procedureo Our non-judicial summons procedure has the main goal of realizing swift payment of your open receivables without damaging your customer relationships. In doing so, we decide jointly with our customers on the: individual approach to be taken choice of most promising course of action (written summons, phone collection etc.) efficient mix of measures chronological sequence of events and the frequency of contacts. Your success is our success Experience has shown: the sooner we take over a bad debt for collection, the better the chance of successful realization. It therefore makes sense to avoid a protracted summons phase and to exploit the potential of Creditreform s professional debt collection service as soon as possible. Our high success quota for non-judicial summonses speaks for itself. Days receivable 30 60 90 120 150 Time until debt-collection order Cost of collecting the receivable Professional compulsory execution with Creditreform After a receivable has been judicially recognised, compulsory execution measures are often needed to persuade the debtor to pay. New guidelines in 2013 resulted in greater diversity in compulsory execution, also making it considerably more complex. The rising cost of compulsory execution makes an up-front feasibility analysis increasingly prudent. Creditreform will assess the available options for you, determine which one offers you the most benefits, and also handle all correspondence with the bailiffs and courts. Days

National services Process depth International services Full service debt collection Long-term monitoring Compulsory execution Judicial summons procedure Non-judicial debt collection Collection of titled receivables Compulsory execution Judicial collection Non-judicial debt collection Title recognition process Compulsory execution international Judicial summons procedure, international Non-judicial debt collection, international Full service debt collection, international Debtor management and summons service Commercial summons procedure Summons service, international Turn your old receivables into cash Titles alone are not yet cash! But even if a judgment cannot yet be enforced, all is not lost for your receivables. Titles remain valid for thirty years. Regardless of their age, Creditreform processes supposedly valueless receivables in its intensive long-term monitoring program. In doing so, we offer a comprehensive service from collecting the case files to reviewing and sorting the necessary documentation. If the debtor is either unwilling or unable to pay, elaborate and costly measures must often be taken. With long-term monitoring, Creditreform assumes the entire cost risk. Commission is only charged on success. Working for you around the globe Creditreform s international debt collection service supports your debt collection endeavors worldwide with a global network of regional offices, specialized partner organizations. These are conversant in the local language, business customs, legal system and country-specific possibilities for collecting outstanding debts. Our primary goal is to settle your open debts quickly and cost effectively using non-judicial measures. Should judicial measures be needed, these will be agreed with you beforehand. For Creditreform, processing an EU summons procedure is just as routine as handling a compulsory execution order obtained in Germany. Use our extensive international debt collection services to place your international success on a sound footing! The Creditreform Effect more cash in hand through intelligent knowledge networking We know your debtor and your debtor knows us; and our understanding of his solvency situation optimally positions us to choose the most promising debt collection strategy. At the same time, the debtor is also aware that an unpaid invoice can have a negative impact on his credit rating, generally resulting in a greater willingness to pay. This applies all the more when the rating agency and debt collector are under a single roof we call this synergy the Creditreform Effect. Cumulated in-payments Creditreform Commercial Information Debt collection strategy takes current credit rating into account Debtor Management Non-judicial Debt Collection Compulsory Execution Maximum total realization Maximum total realization Debt collection strategies effect debtor s credit rating Judicial Summons Procedure Long-term Monitoring The Creditreform Effect In-house receivables management Days receivable overdue Time

Every reason to choose Creditreform > Maximum quality standards Regardless of the stage in which you involve us in your late payments, our quality management ensures your debtor is addressed in the right tone. In this way, the risk of damage to your customer relationships can be discounted. Intelligent modules for optimizing your receivables management Receivables collection is a central but not the only module for professional receivables and liquidity management. Creditreform offers all these components in a perfectly dovetailed service portfolio. Protecting yourself against bad debts Creditreform s bad debt insurance is offered in cooperation with leading trade credit insurers and provides individual protection against distressed payments and losses caused by default. The option of assigning insured receivables to your bank additionally strengthens your negotiating position e.g. if you want to increase or prolong your current account borrowing limit. Immediate liquidity with Crefo Factoring For those looking for an alternative for increasing their liquidity scope, Crefo Factoring offers to purchase open receivables as soon as they are invoiced. The amount is credited immediately. Distressed receivables, too, can be turned into cash! By buying your distressed receivables, you not only receive additional cash in hand for receivables you had possibly already written off, but are also alleviated of the administrative overheads. Why not talk to us? > Excellent success quota thanks to optimized processes with integrated solvency data For each process step, we turn to Creditreform commercial information to establish the most effective measures to take against your debtor; in this way, we minimize your cost risk while maximize the prospects of success. > It couldn t be easier WebCollection Our Internet channel allows you to send us summonses and check their current status, 24 hours a day, 7 days a week. > Electronic data exchange reduces workload Electronic data import / export helps cut administrative overheads, especially when a large number of assignments is involved. > Successful as measured by your needs Our WebCollection and bespoke reporting services ensure transparency for in-payments and status updates at all times, thus forming the basis for measuring our success. Put us to the test! > Your partner directly onsite 129 regional offices across Germany ensure the availability of Creditreform s celebrated, personal and cordial consulting, somewhere near you, too. > Consulting and seminars We d be delighted to help you optimize your receivables management processes be it through problem analysis, individual consulting or specialist seminars for your employees.

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