Abstract:
The goal of this thesis is to illustrate methods which can increase receivables
collection efficiency. These attempts to increase efficiency will be done on example of
multination company which is operating on building equipment market. The model of
this company will be described in this thesis as a basic model to improve. In order to
improve efficiency, tools to measure it will be presented in sixth chapter. In last chapter
there will be methods which can be used to improve collection efficiency. These
methods and tools with be both measurable and not. As well, there will be examples,
calculations and explanations on how and in what way these methods can improve
collection effectiveness. In attempt to improve effectiveness of collections
there will be investigated two hypotheses:
Hypothesis 1: Setting a fine for overdue payments should be effective method to
increase collection efficiency.
Hypothesis 2: Increasing number of phone calls to debtors should improve
collection efficiency.
These hypotheses will be evaluated and their possible effect on collection
efficiency will be presented.