New Service Reduces Backloading Bad Debt Risk

Online, December 17, 2010 (Newswire.com) - Backload Protect allows greater protection for firms trading with customers overseas under 'backloading' deals, where the truck goes out full and then loads up with more goods to bring back to the UK for the return journey.

These deals expose hauliers to credit risks, because they don't have a relationship with their client and often source business through a third party, for example an agency. And they often overlook obtaining credit information on overseas companies as it can be expensive.

Octempo's new service allows them to reduce their exposure, by outsourcing the credit checking of the foreign customer, the credit control follow-up, and if needed, the debt recovery to foreign nationals who understand international business cultures and have direct experience of working in the haulage industry.

Octempo MD Julian Llewellyn said: "Hauliers are coming under increased pressure through falling demand, increased competition, higher fuel prices and shrinking margins.

"Being hit by a bad debt in this environment can have serious implications.

"We launched Backload Protect on the back of supporting our haulage clients, for example an £18m turnover haulier who generates 20% of their business through backloading on trips to Southern Europe.

"Much of their work comes through an agency so they don't know the actual customer, so it makes sense for them to have extra protection against potential bad debts.

"On margins of 5%, a bad debt of just £5000 would put massive pressure on them as they would need to bring in another £100000 of invoiced sales to overcome the loss."

Bosses claim Backload Protect is a flexible option because it can be used on a pay-as-you-go basis only when the firm is looking for backload business.

It is also cost effective as firms can avoid annual subscriptions on credit information and also gain access to Octempo's overseas skills and experience, at a fraction of the cost of providing similar in house.

Further information is available at www.Octempo.com/hauliers.aspx.

Media enquiries should be directed to Richard Swancott Associates on 01782 472035 or [email protected].

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