I am a client - creditor, I have unpaid invoices. Why should I include VIRTEO in the process?
1. Your net recovery result will improve, whether you work with one or many collection partners.
2. Your will get insights that were not possible before and get data that will help you decide on your overall credit management strategy.
3. You will be able to make sure that socially acceptable practices are applied and that your brand reputation is not harmed.
4. You avoid liability risks with GDPR and other privacy requirements
Is VIRTEO the only platform of its kind?
VIRTEO is -up to now- unique in its kind. Of course, other players exists who will try to convince you otherwise. But there is no other neutral end-to-end platform with a relevant community. This has to do with the required investments, which run into millions of euros and the fact that most existing parties only focus on debt collection partners or internal debtor management.
Some other parties offer credit management applications allowing you to transfer case files to collection partners. There are no other multi-channel end-to-end integrated platforms in which a community of collection agencies, lawyers and court bailiffs actually work.
How are cases distributed to my debt collection partners (if I have more then one) ?
It remains at all times the client (creditor, applicant) who determines to which debt collection partner(s) a case is assigned. If there are more, the distribution is usually based on a combination of postal code and your selection of accredited debt collection partners. However, it is possible to include KPI’s like the extent to which a partner fulfils agreements (timings and procedures, avoiding unnecessary costs) in the distribution criteria.
Why is the cash cycle shorter?
Wether you work with one or more debt collection partners, in a traditional system they will all need to forward cases to other partners at some point. This has several reasons; collection agencies have no judicial power whatsoever, so they will need to forward many cases to judicial officers and lawyers. Judicial officers have limited territorial authority, so they need to forward cases that are outside their location. For profit reasons all these actors will try to avoid or postpone forwarding. In the end, some cases will even be forwarded several times. In all, a lot of time is lost.
In VIRTEO no cases are forwarded to other parties in the different phases of the debt collection process. Each party is working on the same data. This data is always updated in real time. Proximity is key in obtaining good recovery results and keeping costs in control, so cases automatically go to the partner that is geographically the closest to the debtor. This also considerably increases the probability that the debtor is known with the collection partner, which of course increase efficiency and a tailored approach.
Furthermore, third party accounts of are linked to the platform, so payments received by your collection partner are immediately visible to you.
The combination of these effects add up to days or even weeks of time gain. The shorter turnaround time has a considerable impact on the average net recovery rate.
Why are the total costs lower?
First of all, because cases are no longer shifted through between collection partners, there are fewer parties involved, which automatically reduces the cost.
In addition, IT costs are considerably lower, both for you and the debt collection partner. Today, all these parties are working with a multitude of applications. All these applications do generally the same thing, yet they cover only part of the trajectory (internal, amicable, judicial, …). Together, all these applications represent a huge IT budget in development and maintenance.
This diversity also creates a challenge: credit managers and administrators have to log in different programs depending on who is in charge of the case, IT interfaces have to be set up separately with each collection partner, and so on. VIRTEO replaces all these applications with one end-to-end standard platform. As a result, costs can be divided among many more parties and you only have one management portal in which you can track all your service providers and cases.
Processes and data structures are standardized, allowing better data analyses and simplifying the reconciliation of incoming payments.
How does VIRTEO help improve the selection process of my debt collection partners?
History shows that selection procedures and criteria, even when carefully developed, often do not lead to the selection of candidates with the best price / quality ratio or with the highest net recovery rate.
With VIRTEO, candidate service providers can no longer manipulate your RFP or procurement terms with so-called bottom quotes on sub-parts of the process, to obtain the assignment at the expense of a true good end result.
VIRTEO allows you to define and measure SLAs that map the actual end result of the entire process and make them perfectly comparable to opponents or challengers.
In addition, you will provide opportunities to candidates who focus on their core business and the quality of their service to qualify with you. The VIRTEO platform allows you to focus the selection criteria on the core service quality rather than on on the technical IT capabilities and volume history of the suppliers.
What are the costs of VIRTEO for us?
There is no license or transaction fee for the client/creditor. If you have an existing process to transfer cases, and we can connect to it, there are no start-up costs. Only if extensive integration is requested, or additional customized consultancy, we may ask for a one-off setup fee. Of course this would be agreed in advance.
VIRTEO’s businessmodel is based on a flat transactional fee paid by the service providers.
How is it possible that I can also see all incurred debtor costs in VIRTEO?
Because the complete amicable and judicial process is performed within the VIRTEO platform. Centrally managed models and processes and linked nominee accounts not only allow you to compare how much your debt collection partners charge you, but also to what extent they charge the debtor with costs.
You can then evaluate if this is in line with your guidelines and wtih your company’s social responsibility policy.
Can I define and edit the process myself?
Yes, the entire process is determined by case templates in which the full time line and various actions are established. Furthermore, you can handle different case templates depending on the type of case, or to measure the result of an extra step, for example.
Who is VIRTEO?
VIRTEO was founded 4 years ago and is a Belgian company with its headquarters in Mechelen. Currently Virteo counts 17 staff members. VIRTEO is a FinTech company, creating value in specific financial/legal sectors through technology and process innovation.
The focus is on innovating processes for debt collection, debt management, management of nominee accounts and so forth, as well as data privacy compliancy, new banking technologies such as PSD2 and several other domains.
Next to our main shareholder PMV (Participatiemaatschappij Vlaanderen), Ark Angels Activator Fund, Sherpa Invest and the management are part of the shareholders.
Is the new IOS procedure applied in B2B?
The new IOS procedure in B2B has many advantages, and shall of course be applied wherever possible. However, this procedure is easy for the debtor to stop by contest, in which case the traditional procedure can still be applied.
Contrary to the perception that some collection lawyers try to create, the IOS procedure can be applied by any Lawyer or any Court Bailiff.
Why do all these bailiffs, lawyers, collection agencies agree to work with VIRTEO?
They realize they are able to better profile themselves to their clients. They firmly believe they provide real quality work and they count on VIRTEO to make this visible to their client in a neutral manner. They can concentrate on their core tasks and keep their IT costs lower and variable, based on their actual activity.
Can I work with my existing lawyers, bailiffs and debt collection agencies?
That is possible, insofar as they are willing to endorse the compliancy requirements and the transparency we offer to clients. If they are not yet known to us, we will contact them and usually they are quite happy with the invitation to work with us.
I work with one party or a few centralizing parties, what could Virteo mean to us?
The concept of centralising parties is increasingly outdated. The disadvantages of such a structure (no transparency, loss of time in the process, conflicting interests, too many intermediaries, too much overheads, etc.) are great, and the reasons why this approach was often chosen in the past are no longer relevant thanks to the combination of technology and associations.
In consultation with the centralising parties you work with, we can examine how the added value of their centralising role can be maintained and how the disadvantages can be avoided.
Is there a minimum volume?
Basically there is no minimum volume. Some advantages like the reporting and the dashboards are present from the first file on, other added values become, of course, more relevant from a certain point.
When is VIRTEO relevant to my organization?
You have a lot of work or difficulties in calculating your real net debt collection.
You need to benchmark, compare, different service providers
You are not sure if your data is and remains safe, and you are concerned about GDPR
You work with multiple debt collection partners or your debt collection partners sometimes forward cases themselves
You want more integration to work faster and easier but your IT service has no time or budget
You would like your internal case managers to have more and faster insight into cases and maintain better control
You need to put out a call for a tender and you want to include the most recent insights
You are not satisfied with the achieved net recovery result, or you think it could be better
You want to be able to build a business case to determine whether selling your outstanding invoices would be a good option and at what price.
You think it’s time for something new.
What is GDPR? And what is VIRTEO's approach to address it?
The General Data Protection Regulation (GDPR) is a set of rules to protect the data of European citizens. These regulations will come into effect in May 2018 and include a large range of data privacy obligations and the way in which you can exchange data with subcontractors (such as debt collection partners) and the way they can handle this data.
There are obligations in terms of ”privacy by design”, general precautionary principles and the obligation to report when data is lost. Fact is that forwarding data to debt collectors and forwarding data by debt collection partners between each other – what is constantly happening nowadays – may not or may not fully comply with these rules. Fines can amount to 4% of the client’s worldwide turnover. VIRTEO structurally resolves this; as recent application, privacy by design is already embedded at its core level and with the platform concept, data is no longer forwarded between service providers.
What if we want to stop working with VIRTEO after a while?
Often, it is difficult or costly to retreat from a collaborative partnership. Suppliers often create a lock-in situation. VIRTEO has a completely different DNA: we stand for open systems.
The exit procedure is there right from the start, to show you our commitment, and the fact that we need nor like vendor lock-in situations.
Can we combine VIRTEO with other channels?
Sure you can.
Can we use VIRTEO for our internal dunning process?
This was originally not foreseen. However, we have many requests from clients / customers to provide the option to manage the internal (pre-collection) process in the same environment.
A number of basic options have already been provided for this purpose and this will be expanded further in the future. If you would like to have a specific functionality, talk to us and we will try to embed that.
Can we do a test with VIRTEO without impact on our processes?
We always try to minimize the impact at the start of the collaboration. We will therefore copy your existing process as much as possible. Once everything is under control, you can start experimenting with the additional possibilities and data VIRTEO offers you.
What about IT integration? Should I involve my IT department?
Usually we can get in on your existing flow and begin with that. This provides you with the tools to evaluate the benefits and decide whether further integration is desirable.
In case you you already work with a partner like UnifiedPost, Twikey, Group Joos, Ipex and others, we can also make use of that integration and no new link is required.
We know that most IT departments are very busy and have existing priorities, so we keep things simple and easy to implement. We can work with all kinds of integrations, from a simple SFTP connection to advanced bi-directional integrations based on webservices and our API.
We will draw up an RFI/RFP or terms of reference.
We can provide you with an overview of the possibilities and our experience without any obligation. This may help you to determine or refine the criteria you will use in your RFI or RFP to rank candidates.
Will VIRTEO provide training?
We provide 2 types of training: a training for those who manage and allocate cases. They will learn how to manage the portal, how to consult all the details of a case, how they can intervene , which reports they can generate, etc. Depending on the number of participants, this training takes about 1 to 2 hours, and is usually given on-site. Another training focuses on individuals who perform analyses, make periodic reports, check whether SLAs are respected and so forth.
This training focusses on the use of a BI tool. Depending on the level and number of participants, this training takes a few hours to half a day.
Can you provide us with a list of affiliated service providers?
We are not a marketplace and we never simply provide a list. Service providers such as bailiffs, lawyers and debt collection agencies have specializations, a geographical scope, some are individually affiliated, some work from within an association, some both individually and in association …
Based on your profile and your wishes, we can provide an overview of the players that match these criteria. Furthermore, we can of course check and inform you whether you existing partners are already familiar with VIRTEO. If that is not the case, we can contact and invite them.
We do not interfere with the choice of service provider, this completely remains your domain. However, we do provide the tools and data to help you make this choice and the evaluation afterwards.
What is the reason of VIRTEO's partnership with Twikey, UnifiedPost, Ipex and others?
We can link with these parties, which means that a direct integration with your back-end systems is not required or simplified. If you already work with partners such as UnifiedPost, Twikey, Ipex and others, we can for example use our link with them to obtain invoice details.
How VIRTEO helps preventing or detecting fraud or abuse?
By (big) data analysis. Because data is now uniform over all service providers, analyses and benchmarks can be performed, and deviating results become visible. The third party accounts used by your service providers are linked, which means incoming payments will automatically be visible. Excessive charges charged to debtors are also visible and measurable. All this, of course, also has a preventive effect.
If you are interested in this matter, check the chapter “What do schoolteachers and sumo wrestlers have in common?” in Levitt & Dubners bestseller “Freakonomics”.
How do I assign files to my debt collection partners?
You determine the allocation rules and we implement these rules in VIRTEO, the distribution is then automatically applied. You can for example determine that cases are allocated on the basis of the debtor’s postal code, or you can determine types according to the case type (B2B/B2C), size of claim, or combinations of these. At all times you have the possibility to intervene manually.