Debt Collection & Dunning in circuly: circuly x Debtist Integration.
circuly has partnered with Debtist to offer automated collection of unpaid invoices natively within circuly.
In this article:
- Introduction - circuly x Debtist integration
- Problem, solution and benefits
- Process Overview: How does debt collection work with Debtist
- Set up Overview: How to enable and set up the debt collection feature
- Overview of the Debt Collection tab: Post-Activation and Data Population
- Pricing
Introduction - circuly x Debtist integration
Our new debt collection feature (powered by Debtist) enables you to recover lost revenue easily and professionally, thus improving your bottom-line cash flow while eliminating the need to allocate additional time or human resources to manage unpaid invoices.
The native integration ensures that you have a full and detailed overview within circuly of all your unpaid payments that Debtist is currently handling.
Additionally, our native debt collection integration eliminates the need for maintaining and checking two different systems and ensure that you have all the information you need in one system, that is circuly. The two systems speak with each other seamlessly to provide you a smooth and consistent user experience and clean data for bookkeeping purposes.
Problem, Solution & Benefit
Problem
Subscription-based business models have an increased exposure to payment failure due to the recurring nature of the business. Effective and efficient dunning and debt collection is needed at all costs but can often be messy, frustrating and time-consuming.
Additionally, since Inkasso processes typically operate offline, they result in unsynchronised data and cumbersome post-collection tasks, like manually entering information into bookkeeping systems and other needed platforms.
Solution
circuly has partnered with Debtist to offer debt collection natively within circuly so that you can save your time, nerves, internal resources and lost revenue.
About Debtist
Debtist is an end-to-end debt collection solution specialising in resolving outstanding debts and unpaid invoices on your behalf professionally.
Benefit
Automated & professional debt collection maximises revenue recovery.
- Automated processes eliminate manual workload and errors.
- Expert communication and professional expertise eliminate misunderstandings and maintain consistent communication with your customers.
- Automated synchronisation of data between circuly and Debtist keeps data clean and ready for bookkeeping.
- Available within circuly in an easy-to-understand dashboard that eliminates the need to work in two systems.
How does the debt collection process work
Once you have enabled the integration and completed the setup, all unpaid invoices will be transferred to the Debt Collection tab for collection by Debtist as soon as the maximum number of payment retrials have been made. Debtist then works fully automated to bring the unpaid invoices to a resolution.
Given below are the detailed steps:
Step 1: Regular payment collection.
circuly collects recurring payments according to the defined schedule. If the payment is successfully collected, you’ll see its status marked as “settled." If it fails, you’ll see its status marked as “failed.”
Step 2: Payment retrial and email communication.
When a payment fails, the circuly system retries the failed payment according to your payment retrial settings and sends the “payment failure” email.
IMPORTANT: In the circuly operations backend, you can define how many times a payment should be retried, what should be the time interval between each attempt and if the customer should be informed on each attempt or only on the final attempt.
Step 3: Maximum payment retrial attempts made.
As soon as circuly has made the last payment retrial attempt and if the payment still has the “failed” status, the payment and the connected invoice are transferred to the Debt Collection tab.
Step 4: Prejudicial debt collection by Debtist
When an invoice is transferred to the debt collection tab, it is also transferred to Debtist for debt collection. Debtist then starts with the pre-judicial collection process via email and/or letter and other communication channels to obtain the particle or full payment.
Step 5: Judicial debt collection by debtist
If the payment is still outstanding, Debtist begins judicial proceedings. At this stage, Debtist may get in touch with you if additional charges are to be incurred.
IMPORTANT: Debtist will always get in touch with you before proceeding with any step that incurs additional charges for you.
Step 6: Debt Collected
If the payment is successfully collected, the status will change to “debt collected”.
See the image below for a process overview
How to enable and set up debt collection in your circular operations backend
There are two steps to enabling and setting up the debt collection feature:
- Send the activation request and create a Debtist account.
- Debt collection settings: Choose how you'd like to handle unpaid invoices for debt collection: automated or manual handover.
IMPORTANT: After you send the activation request, the debt collection feature will be activated on the 1st day of the month following your request.
For example, if you submit the activation request on August 15th, the debt collection feature will be automatically activated for your account on September 1st.
Send the activation request
- In the left navigation bar, go to the Debt Collection tab
- Click on the button that says ACTIVATE DEBT COLLECTION.
A popup box will open where you can see the pricing list from Debtist and. The pricing list outlines the debt collection charges from Debtist for different countries.
Additionally, you can read the privacy policy and terms & conditions.
Click on the NEXT button to trigger the activation request and to start creating your Debtist account.
Create a Debtist Account
- In the Create your Debtist account window, add your details and click on the SUBMIT button.
What is the Max. Payment Plan Option?
When setting up your Debtist account, you can choose how your customers will repay their debt—either as a single payment or in multiple installments.
- To require a one-time payment, simply enter "1" in the input field.
- If you'd prefer to offer your debtors a flexible payment plan, enter the number of installments you're willing to accept, such as "2", "3", "4", and so on.
This option gives you control over how repayments are structured to suit both your needs and those of your customers.
The debt collection feature will be activated on the 1st day of the month following your request. For example, if you submit the activation request on August 15th, the debt collection feature will be automatically activated for your account on September 1st.
Debt collection settings
In your circuly Operations Backend, head over to the Settings tab > Invoice & payment > Scroll down to DEBT COLLECTION to configure the settings associated with debt collection.
- Auto claim: enable the switch if you want to hand over the unpaid invoices when a payment fails automatically and has been retried x number of times (payment retrial settings) to Debtist for debt collection.
- Delay by: set the number of days the circuly system should wait when a failed and retried payment is handed over for debt collection to Debtist.
Overview of the Debt Collection tab: Post-Activation and Data Population
In the beginning the Debt Collection tab will be empty (see image below).
You will see data as soon a payment has been retried by the circuly system as per your payment retrial settings and transferred to Debtist for Debt Collection. When there are some claims and invoices under the process of debt collection, this is how the Debt Collection tab will appear (see image)
Pricing
A fixed fee of 49€ will be charged monthly upon activation for everything, including the integration + implementation + continued debt collection-*
*Additional costs may apply based on the region of debt collection. Additional costs are incurred ONLY IF the debt is successfully collected. There are no costs if the debt is not collected, that is if the claim is unsuccessful.
Additional costs based on region
DACH - no additional costs
Europe (excluding DACH) - 20% of the success claim
Outside Europe - 30% of the success claim