Microfinance Organizations

Recovery of Overdue Debt from Individuals

Microfinance Organizations are often faced with a problem of non-payment of the principal debt and interest on provided microloans, as well as untimely payments by borrowers. To create a private debt-collecting service, time and significant financial investments are required, whereas a complete-cycle collection agency has a technical platform, a developed branch network and professional employees, for whom the collection of debt is the principal activity. As of today, we work with more than 50 microfinancial organizations.

Our solutions will help you to:

  • Get maximum debt collection efficiency in the market
  • Focus on principal activities
  • Reduce share of overdue debt in your loan portfolio
  • Improve financial results
  • Reduce effort for work with problematic assets using your own resources
  • Minimize reputation risks through collection of debt on behalf of your company

How We Work

We outline two principal methods of work: agency model and portfolio purchase (acquisition of rights of claim regarding provided microloans).

The agency scheme work presupposes

  • Work with any size of portfolio
  • Work in the whole territory of the Russian Federation
  • Client-approved duration of work with a portfolio (with further prolongation or transfer to the legal proceedings stage)
  • The commission fee depends on the collected debt
  • Regular delivery of activity reports

Advantages of outsourcing:

  • Skilled, regularly educated specialists
  • Use of versatile portfolio management strategies
  • Use of optimal methodology of collecting bad debt, based on our data, accumulated in Russia, and advanced information technologies
  • Significant reduction of costs for personnel, infrastructure, IT
  • Minimization of investment risks, related to extension of the existing infrastructure

Debt Purchase

We offer services of purchasing overdue debt portfolios with a concurrent writing them off the balance of the microfinancial organization. Optimal portfolio size upon purchase — from 3,000 accounts.

Options of work with a portfolio using assignment of claim scheme:

Option 1. Prompt writing-off of non-performing loans from the balance
National Recovery Service buys a portfolio of overdue debt, which emerged as a result of the microfinancial organization’s activities, at a minimum price for the portfolio. In this case the level of price is determined based on historically accumulated data on work with similar debt portfolios.

Option 2. Repurchase of perspective portfolio with a preliminary test
National Recovery Service accepts a test portfolio for service, and works with it for 3 months. As a result of our work we determine the quality of the portfolio, which is getting ready to be sold by a microfinancial organization, and announce the price at which we are ready to acquire the portfolio. This approach takes a little more time, but it gives an opportunity to identify the fairest value of a portfolio.

Option 3. Repurchase of portfolio with back payment
The portfolio is purchased for the minimum price with an obligation to pay a certain interest to the microfinancial organization from the amount of collections from the portfolio within an agreed period of work after the return of investments, used for purchasing the portfolio. As a result, the amount received by a microfinancial organization from the National Recovery Service will meet the initial expectations as of the moment the portfolio is sold.

Prompt Resolution of Issues

Our Services

  • Reminder on the necessity of payment through sending of notification letters, SMS, phone calls
  • Allocation of a separate and free for debtors phone line (8 800) – for obtaining of current information on the amount of debt, grounds for accrual and terms of payment in a convenient form
  • Work with debtors regarding debt collection:
  • Check of relevance
  • Sending of notifications on debt, SMS messages
  • Calls and visits to debtors
  • Legal support of court proceedings (writ proceedings, action proceedings)
  • Coordination of work of bailiffs at the stage of enforcement proceedings

NRS offers

Staff – Well trained and highly motivated

NRS’s DPA competitive advantages:

Deep approach to portfolio due diligence (files, contacts etc.)