DMG Commercial Credit Consulting

Collecting what clients are owed without tying up staff

DMG Commercial Credit Consulting works on the unpaid invoices and receivables that squeeze a business's cash flow. Its founding idea is that credit problems cause a great deal of worry for owners, who must keep moving forward while money they are owed sits outstanding. The firm offers to take that work on for businesses that either have no credit department or prefer not to run one, at a fraction of the cost of a full-time employee.

Collection calls, demand notices and enforcement

Chasing debtors directly is presented as slow and wearing work, often full of excuses and broken promises. The firm's collection specialists are described as experienced and equipped to handle common avoidance tactics. It also issues demand notices in its own name, and the firm says the letter tells the debtor that the account has been placed with it for collection. Where a judgment is obtained, the firm says it can enforce it through wage garnishment, seizure of assets or bank accounts, and liens.

Credit checks and written credit policy

Before extending credit, a client can use the firm's credit searches to see whether a company or individual has a poor payment history or outstanding judgments. The firm says those results help an owner make a better-informed decision on creditworthiness. Its full credit management service also covers accounts receivable management, debt collection, writing credit policies, developing and reviewing credit application forms, and recommending changes that reduce risk, time and expense.

Why clients use an outside credit function

The firm argues that waiting makes collection harder, and that an overdue balance is worth less the longer it sits. Outsourcing lets a client keep its relationships with customers while a specialist does the chasing. The firm presents moving money from receivables into cash as the result it aims for, and it says it takes a proactive, persistent approach to get there.

Scope of the credit service

Clients who hand over their credit work can expect the firm to review the whole credit process with them, from the first credit application through to collection. The firm says it makes recommendations in the client's interests, weighing risk against cost and the staff time a business would otherwise spend on collections.