Unlike collection agencies, which typically begin to negotiate settlements immediately based on percentages of the money owed, Invotex researches the transaction history between a company and its customers to better understand the origins and evidence of the dispute in order to more effectively argue for maximum collection amounts. Our research assists us in identifying the most efficient ways to collect. In such instances, Invotex adopts a fiduciary obligation to maximize the client’s interest, much as an attorney advocates as effectively as possible on behalf of his/her client.
In the case of loan workouts, Invotex is retained as a third party to ensure that the cash collected is correctly applied to specific items of collateral. Further, if a creditor discontinues operations, Invotex steps in to collect receivables or sell off inventory. Unlike an auctioneer, Invotex initially attempts to understand how inventory would be sold under usual circumstances and then orchestrates non-distressed sales or a return of inventory to suppliers.
General services relating to troubled loans include:
- Control of cash to assure that collected funds are devoted to satisfy the obligation to the lender
- Development and implementation of procedures to control the billing and collection cycles
- Books and records inspection
- Employee conversations and interviews to understand how the loan has been administered
- Evaluation of company’s financial condition
- Cash requirement forecasting
- Collection realization estimates
- Operating expense containment
- Realization of assets under guarantee agreements
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