MBD Credit Solutions Limpopo Finance Week

Report
SALGA LIMPOPO
FINANCE WEEK
“Back to Basics”
7 – 8 February
PUBLIC SECTOR
BUSINESS2013
UNIT
Discussion Points
PUBLIC SECTOR BUSINESS UNIT
Introduction
MBD Credit Solutions is the leading
independent
provider
of
credit
management solutions in Southern
Africa, specifically focusing on the
collection of accounts receivables
encompassing the entire credit cycle
using call centre based and legal
collections.
MBDCS has 12 years’ experience in
the accounts receivable management
field. MBDCS services a wide range of
large clients from the private and all
levels of public sector.
•
•
Membership: NCR, Council of Debt
Collectors, Law Society, ADRA, ICM, CPA,
ACA International
Global Credit Ratings – SQ2+
PUBLIC SECTOR BUSINESS UNIT
About the Public Sector Business
Unit
National, Provincial and Local Government has a key
role to play in meeting the service delivery needs of the
people of South Africa. In order for this to occur, a good
sustainable financial model is needed, which include good
revenue management and debt collection at all
municipal levels.
MBD Credit Solutions has recognised that the public sector
operates within a complex regulatory framework and
requires unique revenue management solutions and
strategies to meet its broader mandate of service delivery.
The dedicated Public Sector Business Unit was
established by MBD Credit Solutions to address the specific
needs of the Public Sector market.
PUBLIC SECTOR BUSINESS UNIT
MBD Credit Solutions Clients
Financial Services
Public Sector
Retail
Telecommunications
Subscription Services
Commercial
PUBLIC SECTOR BUSINESS UNIT
Footprint and Infrastructure
PUBLIC SECTOR BUSINESS UNIT
Municipality Debt Breakdown
Name of
Municipality
Overall Debtors
Book (‘000)
Name of
Municipality
Overall Debtors
Book (‘000)
Ba-Phalaborwa
445,270
Greater Giyani
73,070
Polokwane
401,234
Greater Tubatse
70,807
Mogalakwena
319,750
Modimolle
59,409
Thulamela
278,343
Greater Letaba
51,130
Lepelle-Nkumpi
215,665
Musina
42,393
Greater Tzaneen
156,674
Molemole
37,619
24 Municipalities
Thabazimbi
141,436
Mookgopong
37,405
•
5 District
Bela Bela
104,243
Elias Motsoaledi
36,532
•
25 Local
Makhado
100,000
Ephraim Mogale
33,820
Lephalale
99,264
Aganang, Mutale, Maruleng, Blouberg
Fetakgomo, Makhuduthamaga
70,076
Approximately R3.3 billion
Based on AG Report 01 Aug 2012 / Latest Annual Reports
PUBLIC SECTOR BUSINESS UNIT
Municipality Challenges
Meter Services
Management
Customer Care &
Query Resolution
Call Centre
Management &
Infrastructure
Data Cleansing ,
Stand Verification
& ID Verification
Debt Collection
Business Process
Meter Audits &
Installation
Collection
Software Systems
Revenue
Strategies
Billing
Credit Control
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
BPO Solutions
Cheetah ARM System
ARM – Account Receivables Management
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
Pre Billing Services
• Meter Services
• Readings & Cut-Off
• Meter Audits & Installation
• Stand Verification
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
Hosting & Administration of Accounts
• Complete Suite of Communication Channels
• Automated Voice Message, SMS, MMS, Letters, Emails, USSD
• Billing & Statements
• Account Management
• Customer Care
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
Setting up of Call Centres
• Collections Call Centre
• Customer Care / Query Resolution Call Centre
• Collections Software
• Training & Management
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
Pre-Legal Collections
• Early Stage Collections – less than 90 days in arrears
• Late Stage Collection – 90 days and above in arrears
• Collection of all Municipal Services
• Collection of Traffic Fines
• Segmentation & Debtor Profiling
• Query Resolution & Customer Care
PUBLIC SECTOR BUSINESS UNIT
Commission Rate
•
Commission Rates are at 15% (negotiable based on municipality size,
volumes, etc.)
•
On arrear accounts that have been handed over
•
No collection, no commission basis
•
No additional fees unless debtor moves over to legal process where
undefended pricing may be applicable
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
Legal Collections
• Preferred relationship with Munnik Basson Dagama Inc.
• Specialist in legal collections
• Capital Data the – specialist in administration order and debt
review
PUBLIC SECTOR BUSINESS UNIT
How to get back to basics
Pre Billing
Services
Hosting &
Administration
of Accounts
Call Centre
Setup
Pre Legal
Collections
Legal
Collections
Debt
Acquisition /
Restructuring
MBD Credit Solutions has over the last 10 years refined the valuation of debt
acquisition portfolios to a fine art. Having concluded in excess of 100
transactions in the private sector, MBD Credit Solutions has obtained detailed
insight into the do’s and don’ts of debt acquisition. MBD Credit Solutions’
valuation techniques and contractual terms and conditions take this
experience into account.
PUBLIC SECTOR BUSINESS UNIT
Debt Acquisition / Restructuring
DATA EXTRACTION
RECEIPT OF DATA
ANALYSIS AND VALUATION OF THE DEBTORS BOOK
UPFRONT VALUE AND COMMISSION RATE ASSIGNED TO DEBTORS BOOK
AGREEMENT WITH PUBLIC SECTOR CLIENT
PAY UPFRONT INSTRUMENT ON SIGNATURE DATE
RIGHT TO COLLECT ON BOOK ON CONTINGENCY BASIS WITH COMMISSION SPLIT
PUBLIC SECTOR BUSINESS UNIT
Values and Number of Accounts
•
MBD Credit Solutions has concluded transactions across a wide
range of asset classes including in-store retail credit cards, bank
credit cards, personal loans, asset shortfall loans, cellular
contracts, and distressed mortgage portfolios.
– Total face value
– Total accounts
•
R10 billion
2 million accounts
MBD Credit Solutions utilises the capacity of the Transaction
Capital (MBDCS’ parent company) Debt Capital Markets team to
arrange favourable securitisation terms, rates and covenants and
ensure long term operational funding. Transaction Capital has also
recently listed on the JSE, ensuring further capital and funding
available to MBD Credit Solutions
PUBLIC SECTOR BUSINESS UNIT
QUESTIONS
PUBLIC SECTOR BUSINESS UNIT
IMPROVING YOUR REVENUE IS
OUR BUSINESS
PUBLIC SECTOR BUSINESS UNIT

similar documents