PUBLIC SECTOR BUSINESS UNIT 7 – 8 February 2013 SALGA LIMPOPO FINANCE WEEK Back to Basics.

PUBLIC SECTOR BUSINESS UNIT 7 – 8 February 2013

SALGA LIMPOPOFINANCE WEEK “Back to Basics”

PUBLIC SECTOR BUSINESS UNIT

Discussion Points

1

•Business Overview

2

•Overview of Limpopo

3

•Municipality Challenges

4

•How to get back to basics

5•Q

uestions


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+


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.


MBD Credit Solutions Clients

Telecommunications

Retail

Commercial

Financial Services

Subscription Services

Public Sector


Footprint and Infrastructure

9 Call Centres

1500 fully equipped seats

Technology, Secure Data & IT

Cheetah

Dedicated Attorney Firm

2500 Employees

Customised Revenue Strategies

Modelling & Risk Strategy Team


Municipality Debt Breakdown

Name of Municipality

Overall Debtors Book (‘000)

Ba-Phalaborwa 445,270

Polokwane 401,234

Mogalakwena 319,750

Thulamela 278,343

Lepelle-Nkumpi 215,665

Greater Tzaneen 156,674

Thabazimbi 141,436

Bela Bela 104,243

Makhado 100,000

Lephalale 99,264

Name of Municipality

Overall Debtors Book (‘000)

Greater Giyani 73,070

Greater Tubatse 70,807

Modimolle 59,409

Greater Letaba 51,130

Musina 42,393

Molemole 37,619

Mookgopong 37,405

Elias Motsoaledi 36,532

Ephraim Mogale 33,820

Aganang, Mutale, Maruleng, BloubergFetakgomo, Makhuduthamaga

70,076

Approximately R3.3 billion

24 Municipalities

• 5 District

• 25 Local

Based on AG Report 01 Aug 2012 / Latest Annual Reports


Municipality Challenges

Meter Services Management

Data Cleansing , Stand Verification & ID Verification

Meter Audits & Installation

BillingCredit Control

Collection Software Systems

Debt Collection

Customer Care & Query

Resolution

Call Centre Management & Infrastructure

Business Process

Revenue Strategies


How to get back to basics

Hosting & Administration

of Accounts

Call Centre Setup

Pre Legal Collections

Legal Collections

DebtAcquisition / Restructuring

BPO Solutions

Cheetah ARM System

ARM – Account Receivables Management

Pre Billing Services




of Accounts

Call Centre Setup


Legal Collections




• Meter Services• Readings & Cut-Off

• Meter Audits & Installation

• Stand Verification




of Accounts

Call Centre Setup


Legal Collections



Hosting & Administration of Accounts

• Complete Suite of Communication Channels• Automated Voice Message, SMS, MMS, Letters, Emails, USSD

• Billing & Statements

• Account Management• Customer Care




of Accounts

Call Centre Setup


Legal Collections



Setting up of Call Centres

• Collections Call Centre

• Customer Care / Query Resolution Call Centre

• Collections Software

• Training & Management




of Accounts

Call Centre Setup


Legal Collections



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


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




of Accounts

Call Centre Setup


Legal Collections



Legal Collections

• Preferred relationship with Munnik Basson Dagama Inc.

• Specialist in legal collections

• Capital Data the – specialist in administration order and debt review




of Accounts

Call Centre Setup


Legal Collections



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.


Debt Acquisition / Restructuring


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 R10 billion– Total accounts 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


QUESTIONS


IMPROVING YOUR REVENUE IS OUR BUSINESS

Date post:	29-Mar-2015
Category:	Documents
Upload:	noemi-bruington
View:	214 times
Download:	0 times

PUBLIC SECTOR BUSINESS UNIT 7 – 8 February 2013 SALGA LIMPOPO FINANCE WEEK Back to Basics.

Documents