Securing renewal payments from our Clients in 2023
Annually and in every country on the planet, multi-national Clients’ companies are legally required to i) pay Government license fees and ii) submit a legal annual return to the Government and iii) submit a corporation tax return and iv) prepare financial statements. Healy Consultants Group charges renewal fees for these professional services. Our in-house Accounting and Tax Department project manages these annual tasks.
If multi-national Clients no longer need their company, they stop responding to our emails. They don’t want to pay our renewal fees. The Clients’ don’t want to timely accurately and completely discharge their legal, accounting, audit and tax obligations. This exposes Healy Consultants Group to litigation, financial and reputation risk.
Because of the above, Governments blame Healy Consultants Group and impose fines on us and summons us to Court; all because the Client refuses to pay our renewal fees and complete their statutory obligations.
Ignoring their annual statutory obligations is not acceptable to Healy Consultants Group. We need to hunt these Clients’ down and force them to cooperate with us.
How do I contact uncooperative multi-national Clients'?
No. Search? Why? Action? 1. Review all the historic email communication with this Client. Speak to the CRO who closed the sale.
Find names and numbers and email addresses of all persons associated with Client.
Ring and email all of these people.
2. Review the signed engagement letter.
Find names and numbers and email addresses of all persons associated with Client.
Ring and email all of these people.
3. Review the business web site of the Client.
Find names and numbers and email addresses of all key persons mentioned on the business website.
Ring and email all of these people.
Leave a message on their company blog.
4. Do a Google search of Client and his companies.
To find out his latest contact details.
Ring and email all of the contact details found.
5. For all persons identified, check their social media platforms including LinkedIn and Facebook etc.
To let them know HC is looking for them for outstanding fees.
Leave them a nasty message!
Why am I requested to help with renewal collection?
- Renewal sales represent around 50% of Healy Consultants Group’s total sales. Timely, complete renewals collection is, therefore, key to paying the salaries of Healy Consultants Group staff and the fees of our suppliers.
- On average, Sharon prepares 35 renewal invoices a month. Out of this number, i) 5% of Clients settle the renewal invoice within one week ii) 30% settle the same within 1 month iii) 65% do not timely settle the invoice, requiring follow-ups from Healy Consultants Group.
- Clients are more likely to timely settle an invoice emailed by somebody they know, usually the Client Relationship Officer (CRO) who supplied them company numbers and corporate bank account numbers. They care less if the invoice is sent by somebody they do not know, for example Sharon.
- Sharon is the busiest staff member at Healy Consultants Group and her weekly and daily tasks include i) preparing and sending out renewal invoices ii) paying suppliers and staff and iii) taking care of the in-house accounting and tax filings of Healy Consultants Group companies.
- Because of all of the above, please supply all the assistance Sharon needs to chase Clients for settlement of their renewal invoices.
What happens if Healy Consultants Group timely secures payments for the renewal invoices of our Clients?
- Our Accounting and Tax Department team immediately starts project managing the renewal and tax and accounting filing obligations for our Clients’ entities.
- Our Clients have more time to supply complete accurate financial information for their financial statements and corporate tax returns.
- Our ATD Department has more time to prepare quality financial statements and other deliverables for our Clients.
- There is a lower risk of late or omitted filing, and consequently less risk of a government fine or Court Summons against our Clients, Healy Consultants Group and/or our professional passive nominee shareholders and directors.
- The completion of accounting and tax filings takes place smoothly, without stress or business inconvenience for all parties involved.
- Healy Consultants Group generates sufficient income to pay the monthly staff salaries.
- Our Clients are happy and will renew next year with Healy Consultants Group.
- The staff who contributed to closing the renewal sales can receive a renewal bonus, after approvals are granted by Sharon, their line CEO and our Business Owner Aidan Healy.
The renewal collection process
- Three months before incorporation anniversary date, Sharon will prepare our Client’s company’s renewal invoice and either her or a CRO will send the renewal invoice to the Client. See the current renewal email template email in this Dropbox folder.
- Every two weeks, until the renewal invoice is settled, the Client will receive a friendly email reminder. The templates for these friendly reminders can be found in this Dropbox folder.
- In the event the Client has not settled the invoice by the due date, the follow-up process will gradually escalate:
- Follow-ups will gradually use a firmer tone, reminding our Clients that not timely settling renewal fees exposes them and our Firm to legal and litigation risks. See this Dropbox folder for the template emails to use.
- We will gradually copy i) all shareholders, directors and bank signatories as per our signed engagement letter ii) the contact details listed on our Client’s business website, business cards and corporate documents then iii) the government of the country where the entity is registered and of the country of residency of our Clients.
- We will also gradually contact our Clients through alternative channels including i) Facebook ii) Linkedln iii) Twitter iv) WhatsApp / WeChat v) online Google reviews of the Client’s business and so on. While remaining professional and courteous, the messages will clearly convey that our Firm sent countless reminders to our Client and that timely co-operation with us will protect all parties against legal and litigation risks.
- In the unlikely event that the above does not suffice, Healy Consultants Group will i) resign from the corporate structure (as director and company secretary) ii) inform local and global governments that the Client is not cooperating with us, with the Client in copy iii) request our suppliers to do the same iv) engage a debt collector.
- More details on our internal renewal procedures can be found on this webpage and this one.
Case Studies
No. Problem Most likely explanation Solution 1. The Client is not answering my calls and my emails. The Client is no longer using these contact details or has left this Client’s company. - Search for alternative contact details in the engagement letter.
- Search for alternative contact details online.
- Contact directors, shareholders or UBOs directly.
- Check the email thread to source additional contacts.
- Leave contact details on social media and email Client.
2. The Client tells me he is unable to pay my fees because of cash flow issues. The Client is facing financial challenges, so let’s help him as much as we can. Offer him an instalment plan (to be approved by Sharon or a CEO). 3. The Client wants a discount. The Client is trying to secure a discount. - Remind the Client that our renewal fees (year 2 fees) were transparently given to him before he engaged our Firm; and
- Remind our Client that, if the renewal engagement is completed faster and easier than expected, we will refund some fees at engagement completion.
4. The Client declines to pay because a bank closed the corporate bank account of the business or he is not satisfied with his corporate bank account. The Client is facing banking challenges. - Remind our Client of our guaranteed bank account approval policy; and
- A CRO to source a new banking solution; but
- Our Client to settle renewal fees, without waiting for securing a new bank account.
5. The Client wants to transfer out to a low-cost competitor. The Client is looking to minimise overheads; or he is unsatisfied with Healy Consultants Group standard of services. Ask your line CEO to ring the Client to discuss problems and solutions. Bonus for renewal collection
- Each quarter, Sharon will share i) a list of long outstanding renewals and ii) bonuses payable for their collection.
- If a staff member manages to settle long outstanding renewals, he/she can claim a bonus based on the criteria below:
- 100% of the invoice value is settled by the Client.
- There is a margin of at least US$2,500.
- Updated DD documents have been collected from the Client, and the Client File Checklist is signed off.
- Updated DD documents have been collected from the supplier, and the supplier File Checklist is signed off.
- If multiple persons contributed to close the renewal sale, the bonus is shared between them.
