7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013 http://slidepdf.com/reader/full/effective-credit-control-by-tajir-souhail-during-icompetences-frr2013 1/13 Effective Credit Control VIVA Telecom Bahrain – An STC Company Presented by: Tahir Sohail
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Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013
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7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013
Bahrain consists of 33 islands in the Persian Gulf (ArabianGulf). The islands are mostly desert, and most of thepopulation lives in or near Manama, the capital. It is connectedto Saudi Arabia by the 26-kilometer (16-mile) King FahdCauseway. Since independence from Britain in 1971, there hasbeen conflict between the ruling Sunni tribe and the Shiitemajority. A new constitution in 2002 provided for an elected
parliament and gave women the right to vote and stand ascandidates. Economy is majorly based on Petroleumproducts.
7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013
• STC Bahrain (VIVA) was established in the Kingdom of Bahrain on February 2009.
• Saudi Telecom Company owns 100% of its BHD 75 million share capital which is equivalent toapproximately $ 198.75 million at the exchange rate as of that date.
• The company operates in the field of mobile services, international telecommunications,broadband and other related services in the Bahraini market, and commenced its commercialoperations on March 3, 2010.
• In 2012, the company made operating revenues of $263 Million which was 21% higher compared
to 2011 revenues of $ 207 Million.• VIVA Bahrain is regarded as a bench mark in STC companies due to highest ever gross adds
and net profit attained in such a short period.
7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013
In VIVA, along with the traditional checks, we strive to “profile customers” at point of sale and at back office and assocbetter credit management. Some of the checks implemented are:
Point of Sale Checks: Back Office Checks:
360 DegreeCustomer
View
Represents Pre-sale Checks
OccupationCheck
throughCPR reader
CustomerSite Visit
for SME
Deliverynote
signaturefor SME
BadPayeeList
PaymentMethods
NoContactFlagging
Accountlinkingon CPR
M
PaymentBehavior
Monitoring
Account
Aging
BrPr
Mon
Near Realtime roamingmonitoring
NoContactFlagging
7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013
Financial Claim Managementin relation to Partner Fraud
Fundamental Question – If a partner employee commits fraud, is it our problem or the partners?
To determine this,let’s look at the following:
If above are not clear and formally documented, can a counter claim come? Are our losses covered?Some other important elements to look at:1. Company reputation2. Engagement model with partner3. Do we have a replacement if things go south? What will the impact be on sales?
4. Is partner a sister concern?
Contract Type
Quality Assurance
Business Rules
Customer Documentation
IT Systems
Policy/ procedures
• Liabilities are clearly defined• Claw back conditions exists
• Sits with operator• Sits with partner
• Agreed and signed
• Timelines when communicated
•Is readily available•Who is responsible to maintain
•Employs controls•If not, whose liability
• Defined clearly for all scenarios
• Vague
7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013
Conflict of interest (Commercial vs. Finance): From purely financial perspective, DSO and inventory days are targeted to be as low as possible. From commercial perscutting down on your DSO (debtor days) or increasing your DPO (creditor days) are not necessarily good long-term sol
Smart management of cash flow cycle, including tighter business processes and better credit management, is essential. Tany organization to be effective, great care must be taken to balance the financial and commercial needs and businessesthe relationship with suppliers from being just suppliers to partners and ultimately to being promoters of the business.
Factoring @ VIVA
1. Early Payment Discounts – Encouraging customers to pay early. Discounts up to 5% of billed amount
2. Selling Portfolio – Majorly being employed for older debt where the portfolio is sold to a collections agency and com50% of collected value.
3. Credit Analysis for SME’s & Corporate clients – Trade references, background check is performed by collection ageoperators, MOI]
4. Invoice discounting – Being used for “not so old debt, only recent year” where portfolio is given to an outside agen
receipt and payment is done on 30% of collected value. Portfolio remains VIVA’s property.
7/28/2019 Effective Credit Control - By Tajir Souhail - During iCompetences FRR2013