Frequently Asked Questions
If you have more questions, don't hesitate to contact us
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What makes Schel special?
Simple. Our system. Over 30 years we have developed an efficient and effective process that utilizes our proprietary software which allows us to address our clients individual accounts receivable needs in a comprehensive and efficient manner.
Our system discloses problem accounts early, allowing our members to assess and address their slow-paying accounts proactively rather than reactively.
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What is the Schel Management business model?
Schel assists its clients at an early stage in the accounts receivable management process to:
- assist in the timely receipt of A/R’s
- encourage potential problem customers to pay Schel’s clients FIRST
- identify and address problem accounts before:
- more credit is advanced
- those accounts become uncollectable
Schel provides a pre-paid and cost-effective membership option that provides its members with proactive management of their accounts receivable as opposed to the traditional model of waiting until accounts are virtually uncollectable before addressing them.
The Schel system is designed to streamline your existing system so that your staff is not putting time and effort into areas that our system can take care of with greater effectiveness. We take the guesswork out of that time frame when you aren’t certain if your invoices are being purposefully ignored or your goodwill as the ‘vendor’ is being taken advantage of. It is during this period that phone calls and correspondence that have already proven ineffective are biting into your operating costs. This is also the period where customer relations begin to corrode as patience wears thin and respect is infringed upon.
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How does Schel Management's business model work?
Schel’s member’s outstanding accounts receivable are politely addressed at an early stage by our office. You take advantage of the customer’s knowledge that a third party involved, creating a situation where the customer is aware that you are prepared to put resources behind the collection of their account. This approach allows us to get your point across while maintaining a completely courteous dialogue.
Our proprietary software tracks and diarizes your accounts for follow up as needed. Our correspondence, including legal demands if necessary, has shown great success in moving our client’s invoices from the bottom of the debtor’s pile to the top.
If this process does not result in payment or contact between you and your debtor, then you have identified a problem account and have likely done so before other existing creditors have. At that point, your business can make an informed decision as to how to proceed with the account when time is often of the essence.
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At what point would I send my client's file to Schel Management?
Our unique cost structure allows our clients unlimited access to our services at a fraction of the cost of other ‘collection’ options. We recommend that members submit their accounts to us after their attempts at communication have been ignored two times (and no later than 90 days past due). This is the point when there has been a breakdown in the client/customer relationship. Our specialized third party intervention is very effective at this stage.
We at Schel recognize that companies have varying practices for their accounts receivable timeframes. Our ‘twice ignored’ protocol takes these variations into account. Rather than choosing an arbitrary number of days, we find monitoring the flow or absence of communication to be the most effective way to determine the mindset of your customer.
That said, our system is versatile enough to tailor it to your needs and the needs of clients with whom you have payment arrangements that fall outside of the recommended protocol.
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Why involve Schel at an early stage? I don't want to send my valuable customers to collections and risk our business relationship!
Over 30 years we have developed our system with the goal of preserving your customer relations.
It is fundamental to the Schel system that your customers be treated professionally and with respect. Success in a credit department is dependant on maintaining communication with your customers, and having consistent recourse should that communication break down.
The staff at Schel Management does not make harassing phone calls. We believe that professionalism and courtesy are paramount to the preservation of your customer relations and we insist upon it from all of our employees. We offer our members a respected and authoritative voice in their accounts receivable department that will frequently achieve results when your customer fails to respond to the efforts of your in-house team.
Our early involvement accomplishes two things. Firstly, it encourages debtors with cash flow problems to pay you first. Secondly, it quickly and unequivocally identifies accounts receivable problems, allowing you to address them before other creditors of that debtor.
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How does Schel address problem accounts once identified?
If your initial in-house efforts, and then our process garner no response from your debtor, you clearly have identified a problem account and Schel generally recommends proceeding directly to litigation, providing there are no obvious factors that would impede the process (receivership, no contact information, etc.). Court proceedings are the most effective demand available and are frequently less cost-prohibitive than one might expect.
Our long-term association with experienced civil debt lawyers results in the efficient and cost-effective use of legal resources to obtain payment and utilize the Court collection processes BEFORE your debtor’s other creditors. While collection success cannot be guaranteed, early judgment creditors are the ones most likely to succeed in collection.
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We have our own follow-up notices, why would we use yours?
There are several reasons to consider outsourcing aspects of your accounts receivable departments:
- When our members use the Schel process, they use a tool that shows their debtors they have invested in support for their collections and that their accounts are not to be ignored.
- By separating the collection function from the business-customer relationship, our members find that:
- they are able to enhance their contact with their customers as they no longer have to directly address outstanding account issues;
- payments are made more quickly as the customer realizes he can’t simply rely on your goodwill/good nature to let things slide.
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How is Schel paid and what does it cover?
Schel charges its clients a membership fee which covers:
- unlimited access to our system. There is a *one time $10.00 administrative fee for each file submitted to cover postage and handling. No recovery fees are charged on monies collected by our members through this service.
- the support of our legally trained staff who are able provide your office with a wealth of information about your rights and options regarding the collection process, from early stages right through to litigation and enforcement.
- diarization services on submitted files to help keep your files on line and current
- preferred rates on litigation services
- access to our custom documentation (including our customized credit application) designed to offer our clients protection from the risks of granting credit. We are also happy to provide our clients a fee-based consultation and assessment of their existing credit granting process
* volume packages are available
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What payment options are available?
Annual Membership fee with our *guarantee* $1995.00
** fees apply to maximum of 50 accounts submitted per month
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What about legal costs?
Schel's staff is legally trained. Schel has long-term relationships with legal counsel, experienced in civil debt litigation. Our system and volume allow us to offer our members extremely cost-effective legal services. See Legal Costs.
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Aren't legal costs just throwing good money after bad?
In some cases that is true. However, Schel has found that through the early identification of problem accounts and obtaining early judgments our members achieve high rates of recovery with costs which are far lower than the traditional model of:
- paying 30 to 50% to traditional collection agencies, or
- incurring litigation costs as a final resort as opposed to a proactive measure, or
- not addressing problem accounts until they become uncollectable.
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I don't have a lot of problem accounts. Why would I invest in a membership?
Most businesses will benefit from outsourcing at least some aspects of their accounts receivable process to Schel, leaving its staff free to concentrate on invoicing in a timely manner (the lifeblood of any business), the important process of granting credit in the first place and to focus on client care and satisfaction. Indeed, we have found that many of our members have been able to enhance their client relationships by removing the collection of accounts as an aspect of their direct relationship with their clients.
Our support services are of value to businesses of all sizes, and our website interface creates a simple and quick method of file submission. Once a file is submitted, our staff will help keep it on track through diarized reminders at your request- we will check in to see if a cheque has cleared or even remind you that the window of opportunity to file a lien is coming to an end. We are happy to help keep your files on-track and current.
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If we involve Schel early, doesn't that mean we will be sending in some files that may have paid regardless of your involvement?
Probably. But remember, no recovery fees are charged on those accounts and our postage and handling charges are costs your business would incur in any event.
Our communications are designed not to offend your good customers. They are designed to identify quickly and at an early stage which of your late paying accounts are going to turn into problem accounts. That is invaluable knowledge in keeping your cash flow current.
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How can you offer these services without a recovery fee? You can’t offer something for nothing!
Schel Management has developed a proprietary software program and systems that allow us to handle a large volume of files with low overhead. As we have specialized in accounts receivable management for over 30 years, we have streamlined and developed our processes to offer a broad spectrum of services that are available to our members. If you would like more details on the range of services available to our clients, please feel free to contact us!
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What is the difference between a member and a non-member?
A member of the Schel Management System has unlimited access to our accounts receivable management system with no recovery fees for funds recovered through that process. This allows our members to implement our services earlier in the collection process, when proactive steps have the greatest impact. Members also have access to a wide range of services and support that are designed to increase the effectiveness of their credit department.
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What services are available to non-members?
Non-members may use our services on a file by file basis. Funds recovered with our pre-litigation services are subject to a sliding scale recovery fee, as follows:
- Up to $1000 30%
- Up to $5000 25%
- Up to $10,000 20%
- Up to $20,000 15%
- Up to $50,000 30%
- Up to $100,000 10%
- Over $100,000 negotiable
We are proud to offer very competitive recovery rates and our same professional standards of service to our non-member clients.
