At Ideal Communications, We fully understand that your primary goal is to recover as much of the debts owed to you as possible. In pursuit of this goal, we may, in some cases, recommend negotiating with debtors to offer settlements that include a partial reduction of the original amount. To illustrate how this approach can benefit you in the long run:

First: A realistic assessment of your debt portfolio. When you entrust your debts to us, we conduct a comprehensive analysis to identify debts with a lower likelihood of full collection, whether due to the length of their due date, the debtors’ distressed financial situation, or even the increased legal costs of pursuing them.

Second: Focus on achieving immediate cash flow. Rather than investing significant time and resources trying to fully collect old or difficult-to-collect debts, it may make sense to accept a partial settlement. This allows you to receive immediate cash flow, even if it’s less than the original amount, rather than a long wait with little prospect of full collection.

Third: Minimize losses and avoid further costs. Pursuing bad debts for a prolonged period can lead to the accumulation of additional legal and administrative costs without guaranteeing full recovery. By accepting a settlement at a reasonable discount, you can reduce your losses and avoid these additional costs.

Fourth: Improve your financial metrics. Eliminating bad debts or those with a low probability of collection, even through a partial settlement, can improve your financial metrics and make your balance sheet stronger.

Fifth: Free up your resources to focus on core activities. Letting us handle negotiating settlements for difficult debts frees up your internal team’s resources to focus on your core activities and growing your business.

Our discount proposal process is thoughtful and transparent:

* Careful analysis of each case: We do not randomly propose discounts. Each case is evaluated individually based on the debtor’s specific circumstances and the likelihood of full collection.
* Experience-based recommendations: We provide our recommendations based on our extensive experience in the debt collection market and our knowledge of collection rates for similar debts.
* Clearly present scenarios: We clearly explain the different scenarios, including the expected amount of collection in the event of a settlement versus the potential amount of collection (taking into account costs and time) in the event of legal action.
* Obtaining Your Approval: We will never offer a reduction or agree to a settlement without your explicit consent. Our role is to provide advice and recommendations based on our experience.

Our shared goal is to achieve the best possible return on your debt portfolio. In some cases, accepting a deliberate reduction may be the most effective strategy to achieve this goal in the long term.

Do you have any questions about this aspect of our services or would like to discuss specific cases? We are here to ensure you make informed decisions that serve your organization’s best interests.