Collecting payment from businesses for services offered or products sold is an essential part of maintaining consistent cash flow important for the overall success of the company.

The greatest challenge which most Indian companies face is the challenge of recovering bad debts. Studies reveal that on an average 40%-50% of services/products sold on credit never get paid on time and become turn bad debts. However, best efforts by the industries to recover these bad debts hardly pay off and only half of these have to written off by the end of the financial year.  Recreate Credit & Collections is India's leading company into Risk Management and B2B Collection services providing solution to clients for business and financial risk covering over worldwide locations.

 

“Accounts receivable management is the process of ensuring that customers pay their dues on time. Early calling helps the business to prevent themselves from running out of working capital at any point of time. It also prevents overdue payment or non-payment of the pending amounts of the customers”, says Vikas Malik, Founder and CEO, Recreate Credit & Collections.

Adds Malik, “our client relationship team tends to focus on building trust and understanding their needs. As per requirement, we provide valuable custom advice and suggestions on how to cover maximum risk and reduce overdue accounts receivables. Operations and backhand team takes the utmost responsibility of the smooth running of each and every client's accounts. As a Risk Management and B2B debt collection agency, we take care that all the correspondence from/to the clients are responded promptly and are directed to the right team.”

The Mission

“Our Focus is to build a relationship with our clients, treating them with respect and making them feel comfortable so that we can maximise our support by becoming a trusted partner. This includes responding promptly to their queries, anticipating their needs and being a good listener. We aim at coordinating the debt collection process. Our local presence and proficiency in the local language of the debtor's region maximizes the possibility of the debt amount we collect.”

SME WORLD in an email interaction with Vikas Malik:

What kinds of risks are involved in the India business ecosystem?

Every Risk related to non payment of dues. Credit Insurance provides cover over all your payments against credit issued in the market.

Risk management is fairly a new concept in India. How many are aware of the risk management services and what kind of enterprises turn towards risk management services?

This product was introduced in India about10 years ago, but as on date it's been used by almost 80% exporters with government undertaking company as ECGC. Now from the last 7 years because of comfortable foreign Investment Policy from the Government of India, many MNCs have entered the Indian market. Other than the exporters, only 10-12 % of the companies are aware out of which only 7-8%companies are using this product. Credit Insurance is a mandatory requirement in many countries. Since industrial culture is changing in India and because of MNCs huge investments, MNCs do expect a change in the security ecosystem as a mandatory requirement of Credit Insurance. The demand for this product is increasing as more and more companies look for Credit Insurance service providers.

Kindly tell us about Recreate Credit & Collections. When did it start and the response you received?

We are in the business since May 2015 with only one product of B2B Collections operating as KRRV consultants.  I decided to join and took over as Group CEO of Recreate Credit & Collections in Dec 2019. RCC is the only company which provides a complete package of financial services in India with all products under one roof to safeguard any companies' financial requirements and cash flow. We have received a huge and positive response from market especially MNCs for Credit Insurance, AR management and B2B Collections. We have more than 100 Clients already on board which including SMEs, MNCs, Banks, NBFC's and overseas clients from 7 countries.

What kind of businesses are in the 'risk' category and why?

Any business which offers services or sale on open credit. Credit given in the market always can disturb any companies' cash flow if not recovered on time.

How do you operate once your company is hired for managing recoveries?

RCC has a big team of tele callers and field officers PAN India . Our preference is to get our clients secured with our products like Channel financing / bill discounting from India's leading Banks / NBFC's, Credit Insurance , Group Medical Insurance, Invoice Verification, AR Management , B2B Collections and if required Legal Recoveries.

What is your vision for the next 5 years?

We can see a big scope in the product line in next 5 years as many MNCs are investing in India and all are habitual of our product line in their respective countries. RCC is the only company in India which provides all these products under one roof.

Do you have competitors?

As of now, RCC does not have any competitor. Yes, we do have competitors separately for each product.

What are the challenges involved and how do you combat these?

The only challenge is the awareness of the availability of all these products in India. Industries need education on the benefits of these products. We arrange meetings, seminars and many other group discussions with Industries to apprise them of the benefits of these products.

About Vikas Malik

A result oriented professional with 28 years of extensive experience in Credit Administration, Risk Management, Operations, Portfolio Management & Collections, Vikas is adept at appraising credit proposals, monitoring, supervising credit portfolio with timely review and analysis of feedback statements.

Started in 1992 as a supervisor in India's leading liquor Company, he went on to work in leading banks, collection management companies and multinational credit Insurance companies.

He is demonstrative in framing guidelines for risk control and checking segmentation of cases & briefing risk about dangerous segment of sourcing. He holds a successful track record in managing a network of banking / funds flow to maximize revenue, collection and handling delinquent customers. He has successfully handled collection operations of portfolio more than 80 MlnEUR  in a single year for South West Asia and Middle East. A team player with strong communication, interpersonal, relationship management and analytical skills, Vikas is deft in preparing periodical reports & MIS for monitoring business performance.