Octempo:RM News


Octempo:RM launches Back Load Protect

30 November 2010

Octempo:RM launches Back Load Protect

Credit management specialist Octempo RM is to continue lightening the load of bad debt risk for haulage firms with the launch of their new Back Load Protect service.

Back Load Protect allows greater protection for firms trading with customers overseas under ‘backloading’ deals, where the truck goes out full and then loads up with more goods to bring back to the UK for the return journey.

These deals expose hauliers to credit risks, because they don’t have a relationship with their client and often source business through a third party, for example an agency. And they often overlook obtaining credit information on overseas companies as it can be expensive.

Octempo’s new service allows them to reduce their exposure, by outsourcing the credit checking of the foreign customer, the credit control follow up, and if needed the debt recovery to a firm with a number of foreign nationals who have direct experience of the haulage industry and understand international business cultures. And with Back Load Protect you can pick and choose which element of the service you want.

Octempo MD Julian Llewellyn said: “Hauliers are coming under increased pressure through falling demand, increased competition, higher fuel prices and shrinking margins. Being hit by a bad debt in this environment can have serious implications.

“We launched Back Load Protect on the back of supporting our haulage clients. In particular we have an £18m turnover haulier client who generates 20% of their business through backloading on trips to Southern Europe.

“Much of their work comes through an agency so they don’t know the actual customer, so it makes sense for them to have extra protection against potential bad debts.

“On margins of 5%, a bad debt of just £5,000 would put massive pressure on them as they would need to bring in another £100,000 of invoiced sales to overcome the loss.”

Octempo’s haulage clients claim Back Load Protect is a flexible option because it can be used on a pay-as-you-go basis only when the firm is looking for back load business. It is also highly cost effective as you can avoid annual subscriptions on credit information and you gain access to Octempo’s overseas skills and experience at a fraction of the cost of providing similar in house.

Further information is available at www.Octempo.com/hauliers.aspx

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