DEBT COLLECTION

PROPOSAL

Prepared for: MWANANCHI FINANCIAL SERVICES LTD

Prepared by: RECON COLLECTIONS LTD

©2019
 Table of Contents
1. COVER LETTER ............................................................................................................................................................... 3
2. EXECUTIVE SUMMARY ................................................................................................................................................... 4
3. PROPOSAL...................................................................................................................................................................... 5
4. METHODOLOGY ............................................................................................................................................................ 6
a. Phone Calls ................................................................................................................................................................. 6
b. Text Messages ............................................................................................................................................................ 6
c. Monitoring .................................................................................................................................................................. 7
d. Analytics ...................................................................................................................................................................... 7
5. PRICING .......................................................................................................................................................................... 7
6. TERMS AND CONDITIONS ............................................................................................................................................ 8

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 1. COVER LETTER

Dear Vincent,

Thank you for considering RECON COLLECTIONS LTD for your loan recovery needs.

We specialize in recovering debts that are past due or accounts that are in default for lending companies or
individuals. We started this because we realized that in the lending business, there is a growing number of
defaulters. Lenders find it cheaper to have a debt collector recover unpaid debts than to chase the clients
directly.

By us going after the clients who owe lenders, this allows the lenders continue growing their core business.
Also, the analysis that will be generated from our side will help in informing you about clients’ collection status,
hence help you decide who to give loans and who not to give from your clients list.

We believe our proposal provides a complete debt collection strategy that will culminate in highly successful
results for your business.

If you have any questions, please don’t hesitate to get in touch. My contact information is below.

Thank you,

Enock Omari,
Co-Founder & Director,
RECON COLLECTIONS LTD.
enock.omari13275@gmail.com
+254 711 718 499

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 2. EXECUTIVE SUMMARY

This proposal outlines a coordinated plan crafted with the intent of improving MWANANCHI FINANCIAL
SERVICES LTD’s recovery of debt.

By engaging clients with past due or defaulted loans, our team will demonstrate the ability to recover the debt
owed to MWANANCHI FINANCIAL SERVICES LTD., hence improve the revenue of the company and help the
company focus in growing its business.

Our clients are primarily creditors. We help them recover funds through:

a. Engaging defaulters directly and encourage them to pay the owed debt.
b. Monitoring.
c. Analytics.

While our competitors work to serve multiple industries, we specialize in the credit industry. Our Co-Founder
and Director, Reginah Nyakundi also has a background in debt collection, giving her a unique perspective on
the needs of the market.

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 3. PROPOSAL

RECON COLLECTIONS LTD offers debt collection services for the creditors industry. Our team ensures that all
debt owed to the creditors is paid by the debtors whose loans are past due or defaulted.

RECON COLLECTIONS LTD will work to identify the best ways to make the debtors repay owed funds by
engaging with them directly, discussing to find out why the debtors have not yet repaid their loans. This will
help us arrange with the debtors on when they will pay. We will then follow up to make sure the promised
payments have been done on the agreed dates.

We know that some creditors are also tasked with collecting debt in their own companies. With a background
in debt collection, RECON COLLECTIONS LTD understands the unique needs of your industry.

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 4. METHODOLOGY

The following are ways which we will be using in order to recover your owed funds more efficiently;

a. Phone Calls
b. Text Messages
c. Monitoring
d. Analytics

a. Phone Calls
This is one of the ways we will be using to contact the debtors. The calling frequency will depend on previous
discussions with the debtors. There are categories involved when making phone calls;

1. No Answer Calls – This occurs when we call the debtors, the call goes through but the debtor does not
answer. Once this is established, we make another call the following day (once a day) until the debtor
picks up.
2. Answered Calls – These are calls that the debtors pick up. Once this is established, our team discusses
with the debtors on when the debtor will make payment. All key agreements from the phone
conversations are recorded. If a debtor promises to pay on date X and does not pay, we will call them a
day after date X to find out why the payment was not done.

b. Text Messages
Text messages will be sent once a day to the debtors to remind them of the payment due.

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 c. Monitoring
It is important to regularly maintain contact with your clients in order to keep them engaged to increase
the probability of them repaying their loans. To make this easier, we will be using a software (KOLLECT)
which will be storing all information that clients give like promises when to pay. The software will also be
linked to your loans software (MICROFES) in order keep track on payments done.

d. Analytics
We will provide you with:

 Weekly and Monthly Analytics. Such as Client Collection Status for the past due and defaulted loans.
 Reporting. Summarizing various results and activities on a monthly basis.

5. PRICING

1. RECON COLLECTIONS LTD will charge a flat rate fee of 20% of the Amount Collected per Batch
received.
2. The Minimum Amount Collected which will be subjected to our flat rate will be
Ksh.……………………………………………
3. The Maximum Amount Collected will be Ksh. ………………………………………………………..
4. When we collect more than the set Maximum Amount, we will be entitled to bonus of 8% hence the
total rate becomes 28%.

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 6. TERMS AND CONDITIONS

Our terms and conditions are as follows;

1. We offer a No Collection/No Fee Policy which means that you pay absolutely nothing until we collect.
We will not charge a set-up fee or require any up-front money from you.
2. We will provide a comprehensive status report to you upon request.
3. We will provide a prompt accounting for any account upon request.
4. We will use its best effort to collect all monies assigned to it for collection.
5. We will utilize the most effective method for the transfer of accounts to us to make the process efficient
and easy.
6. We will perform due diligence monitoring of accounts assigned where there has been no activity
because debtor’s whereabouts are unknown by requesting a new credit history.

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