When the economy is strained, history shows that a significant increase in enrolment occurs, particularly in the Further Education sector, as people take the opportunity to re-train and prepare themselves for a more favourable financial outlook. This trend is expected to emerge once again.

This fact alone increases an institutions need for an efficient economic policy, as the upturn in numbers of students, will inevitably, increase the level of debt incurred due to non-payment of tuition fees and other liabilities.

By forming a partnership with a Debt Recovery specialist, an institution can significantly reduce this risk. Our advice is always to integrate an outsourced debt recovery provision as smoothly and as quickly as possible following your in-house credit control measures. One example could be to include your chosen debt recovery specialist's name within the body of your final letter to the student or debtor so that, not only does the student understand the consequences of non-payment, but also who will be engaging with them in the future.

Speed at which referrals are made are also essential. 'New' debt is certainly easier to collect than 'old' debt. A fast and efficient credit control policy, followed by a swift referral to your debt recovery partner is good financial practice and should ensure you are not missing out on the collection of recoverable debt.

In a time when some institutions are publishing their credit control rating in order to secure lower cost funding, there has never been a better time to ensure that credit management and sound economic policy is implemented. Adopting a well-organised strategy could mean the difference between writing off significant levels of debt and reducing the need for extra funding. By investing in a sound strategy, you should find that funds are more readily available and tutors' salaries will become more easily budgeted for.

Imagine if you were able to obtain income from a source not previously considered. Some institutions are now looking at previously written-off debt to realise more funds. You have six years from last contact in which to recover your debts by the use of legal action, but if legal action is not necessary, you might consider even older debt.

As students leave an institution, sometimes leaving debt behind, inevitably their lifestyle and status alters significantly. Unemployed become employed; tenants and lodgers become homeowners...these two factors alone increase the ability to recover debt significantly.

True, this will require some investment, but the prospect of finding another income stream would be seen as a good investment to any commercial operation. If there is a possibility of tapping into new funds for the sake of a small outlay, surely this is a must for any institution? You could be sitting on substantial funds and never know it!

Incasso are the experts at locating and negotiating the recovery of monies previously considered as non-recoverable. To find out how we are helping institutions to prepare themselves for increased volume and to tap into the income stream which could already be in existence, please contact Richard Powell.