Buck4India: Another time a Lenin makes a revolution, this time in the receivables management domain
The history of the collection of debt has been as long as the concept of debt and is older than the money itself. It existed in the earlier systems based on barter trade. It goes back to the time of ancient civilizations, in Sumer in circa 3000 BC. By the time of middle ages, the rule of law prevailed, and courts became the arbitrator in settling debt-related disputes. During the initial decades of the 20th century, especially during the Great Depression large financial institutions in western markets relied upon foreclosure to collect outstanding mortgage debts. The rise of financial institutions also enabled the sunrise of the debt collection agencies as an industry. The stereotype of a debt collector is some guy with chains and a cut-off shirt, but the evolution of debt recovery as industry transformed its outlook. The polite, respectful agents of different debt collection agencies are dialing tens of thousands of defaulters every hour and chasing down late car payments, overdue credit card debt and lapsed installment loans. Although the process of debt collection from B2B corporate clients is much different from the consumer collection, ultimately it rests on the primary principle of the ability to pay.
In the corporate sector, sales always linked with haute targets due to high pressure in sales. So, people into sales are generally focused only on selling, and they are least bothered to collect the payment. Sometimes in order to achieve the set targets, sales teams often end up giving false commitments to the customers or sometimes products are dumped to the customer and again they commit to sell the goods on behalf of their customers. So, when customers realize the commitments were fake, they put the payment of the company on hold, sometimes customer intentionally delays the payment which becomes a matter of dispute and makes drastic impacts on the company's working capital. This obstacle in the cash flow can lead the firm to bankruptcy. So, Lenin Jose and his team thought of incepting a receivables management agency Buck For India which will assist companies to collect their bad debtors and save them from bankruptcy.
In the early decades of the twentieth century, there was a Lenin who changed the course of history by establishing the Soviet Union. Here is another dynamic Lenin ready to disrupt the debt collection sector using technology and significant fast collection services. The CEO magazine's editorial team recently caught up with Lenin Jose, the CEO, and Co-founder of Buck For India. Lenin elaborated on some salient features of his personal life and the organization. Here are the edited excerpts.
Inside the Organisation
'Since my childhood, I have had dreamt of becoming an entrepreneur or in a child's imagination wanted to have my own business. Selling has always been my passion, as sales provide a good opportunity to make more money and it also requires skills to convincing the customer. Adverse situations and tough always motivated me, so I started my career by selling insurances, cars, mobile phones, and other consumer goods. In between that period, I started several businesses where failure came to me overwhelmingly as customers don't pay on time and payments getting converting into bad debtors. So, I went back to sales job and after learning from failures, and mistakes I started this venture, to help other companies and save them from cash crunch issues and it worked,' says Lenin.
Area of Expertise
We improve organization's cashflow performance by recovering their bad debtors as well as current invoices payments within the credit period from Pan India. By hiring us our clients can expand their business to pan India without fearing the risk of payments getting due or non collectability. The biggest advantage to our clients gets from us is that they get pan India collection team members from us if they hiring their own manpower for this they will have to bear fixed cost of salaries and other expense whether they perform or not again company will have to incur loss, by hiring clients have to only pay me once the payment is collected and banked to their accounts or as on when they require our team is readily available . As on date we have office across 11 cites with 110 Collectors. Our real-time reporting system and advance Mis reports help our clients to keep the real-time track of their collections, as on date we are providing our services to 94 Indian and 30 MNC clients from Germany,USA, and Poland. Our TFD and PFS model assures the highest level of service to the client. Our (PFS)"pay for success" model ensure service delivery to the achievement of measurable outcomes and only get paid for our successful collections. We have developed a clear understanding of the issues faced by our clients. We build customized and effective solutions and deliver them within the agreed timeline. Once we take control of the assignment then our client teams are free to focus on their core work which can boost up clients revenue rather chasing for overdue debtors explained Lenin.
Some excerpts from the Personal life
Everyone has a different meaning of success and failures. Lenin says, ' if I am able to generate more job opportunity in the market for jobless people and empower them to become successful and achieve their dreams he would consider this as his success .' Lenin is a risk taker as it motivates him to challenge his caliber. He finds helping his team to achieve more than they ever dreamed possible is the most rewarding part of leading people. Responsibility plays the part of the most motivating factor in Lenin's life. He says, 'a lot of people's livelihood is associated with you, your one wrong decision can lead them into trouble, and a good decision can change their life.'
'I start my day with some morning exercises, reading newspapers and spending little bit of time with my family members. After reaching office I meet my core team members to check the daily activity. If there are issues, then I to resolve the issues in the first half, the second half is meant mostly for business development or a product Development purposes. In the evening I again meet my core team to review the day's progress,' says Lenin.
I encourage my team members to take independent decisions by giving them more autonomy to take some risky decisions even in the cases of monetary loss. If we lose, we learn if we win, we gain. I prefer a democratic approach to Entrepreneurship, for me, it is all about learning from mistakes. No one can take the right decisions every time, if my decision goes wrong then I learn from my mistakes and try way out to make it right. I don't believe in quitting, no matter how miserable is the failure. Due to the work pressure, I regret not able to spend time with my family and work-hours are longer than others, it is difficult to get a bare minimum six hours sleep. I would name my autobiography How Signature turned into autography. I am a travel buff, but my favorite places are London, Zurich, and Dubai. I love spending my time planning new business models and playing with my little daughters and reading Economies times. I want to improve my decision taken ability and patience. My advice for budding entrepreneurs is 'Be ready to face the hardship challenge, whatever problems challenges.' At present I am focusing to increase our bandwidth to tier-two and three cities and take Buck4India to cross 500 happy clients in next 1 yrs.