Nowadays changes in status and situation of business entities are taking place more frequently and more extensively than ever before. Given the difficult economic situation and especially problematic liquidity position it is very important to remain promptly informed about the changes that relate to your business partners. Timely availability of relevant information is essential to take appropriate business decisions. For this purpose Pro Kolekt has developed a service of "Monitoring," which is an upgrade of the usual credit reports. When you read a credit report produced on the basis of the balance of last year you are looking at history. In present times we know that history cannot and should not be the ground for making business decisions.

Service of monitoring involves monitoring the activities of your business partners throughout the year and keeps you informed of any changes in status and credit worthiness of the monitored company. Monitoring includes daily delivery of information over a period of 1 year.

Information collected are submitted electronically and include information about the changes of the company name, business address, ownership and management structure, bank accounts and other changes that could affect the operations of the observed company. In addition, information about the insolvency procedures is presented as well as information on whether a company is in a debt collection procedure.

Some examples will give you a better picture ...

A company which shows beautiful results for the end of last year could be sold later to an unknown "investor" who begins exploiting the good name of this company for his "free" purchases and the previous owners have established the same business under a new company. If suppliers will watch only the balance sheets quite some time will pass before they find out that it is not expected to receive payment for goods or services rendered from this buyer.
The lesson: Be aware of any changes in the ownership of the companies with which you cooperate.

Company "Debtor Ltd." which continually shows problems with settling its obligations changes its name to "Investments Ltd." and moves its headquarters elsewhere. After a few months a procedure of automatic cancelation from the court registry is introduced against the company “Investments Ltd.” Creditors with unpaid claims are still searching and collecting information about the company "Debtor Ltd." but the real debtor has already hidden and the creditors can say goodbye to their money. The company "Investment d.o.o.” makes also a good first impression in the new city and in short time uses another opportunity to make some “free” purchases and damages even more suppliers.
The lesson: Pay attention to any changes in company’s names and addresses. It may be a harmless change but it also might be a debtor hiding with bad intentions.

Customers often find themselves in the "vicious circle of non-payment." When Pro Kolekt receives the order for collection of a debt against a certain company this could indicate that the debtor has serious liquidity problems. Often the first debt collection order is followed by many more and such a debtor can become totally insolvent in a year or two. Those suppliers who have such a debtor in monitoring procedure at Pro Kolekt are duly informed about previous mentioned events and consequently pay more attention to repayment of debtor’s obligations and are more cautious with further supplies.
The lesson: Service of monitoring will give you an early warning of developments in the company, so a reasonable action can be undertaken in time.