Case Studies

Successful Debt Collection Case Study in Uganda

Cedar Financial

A Long-Standing Debt Gets Recovered through Innovation and Empathy in Uganda

How do you effectively recover debt from a customer in a country that’s already going through economic turmoil – without souring hard-earned customer relationships or risking client satisfaction?

The Difficulty of Debt Recovery in Uganda’s Debt-Ridden Economy

Uganda, a prominent East African nation, faces severe economic hurdles. The country is burdened with rising debt levels, driven by massive infrastructure investments, persistent revenue shortfalls, and compounded by external economic shocks and high inflation.

Recovering debt from an individual in Uganda presented a significant challenge for us. These factors create a complex environment for debt recovery, making it especially difficult to collect amounts owed from debtors living under such strained economic conditions.

But We Overcame the Odds –

“Cedar Financial recovered $12,927.40 from a debtor located in Uganda.”

Here’s how:

Debtor Location: Uganda, Africa
Industry: Commercial Collections
Domain: Financial Institution
Amount Recovered: $12,927.40
Debt Assigned Date: February 2024

WHAT WAS THE DEBT CONTEXT?

Early this year, we were contacted by a well-reputable financial institution to recover a debt from an individual in Uganda.

CHALLENGES FACED

Economic Constraints – The debtor’s financial struggles were typical in many African regions, making debt recovery challenging.
Traditional Methods – Standard debt collection strategies seemed inadequate given the debtor’s limited financial resources.

CEDAR’S CUSTOMIZED APPROACHES

Our commercial debt collectors developed intuitive strategies by conducting in-depth research on the debtor’s finances and the local economic context. After thorough analysis, they suggested the following approaches:

Understanding the Context – Our collectors didn’t just see numbers; they saw a person facing genuine financial difficulties.
Creative Solutions – Instead of using conventional methods, we proposed a unique approach tailored to the debtor’s situation.

WHAT INNOVATIVE STRATEGY DID WE EMPLOY?

Upon researching and occasionally meetings with the debtor, we recognized her financial limitations. Our collector diligently tried to persuade her to settle the outstanding amount with means that were accessible to her. We took two important steps:

Asset Utilization – Recognizing that the debtor owned a plot of land, our collector suggested selling this asset to settle the debt.
Effective Negotiation – We engaged in respectful and strategic negotiations to convince the debtor that selling the land was a viable solution.

This initiative demonstrated the collector’s understanding of the debtor’s circumstances and provided a feasible resolution that aligned with her available resources.

CEDAR FINANCIAL VS TRADITIONAL AGENCIES

Unlike traditional agencies, Cedar Financial did not use threats or aggressive tactics, ensuring a positive and respectful outcome for all parties involved.

Traditional Methods – Often involve aggressive tactics and show little regard for the debtor’s personal circumstances.
Cedar Financial’s Method – Emphasized creating a win-win situation by thoroughly understanding and accommodating the debtor’s limitations.

WHAT WERE THE RESULTS OF OUR APPROACH?

What we Achieved

Due to the collector’s persistent efforts, the debtor managed to sell her plot of land and clear the outstanding debt.

End Barrier – The debtor encountered issues at the business center, but our client showed professionalism by facilitating the payment and guiding the debtor to deposit funds into their dollar account.

Achievements

Successful Sale – The debtor sold the plot of land and cleared the outstanding debt of $12,927.40.

Client Satisfaction –Despite some logistical hurdles, our client was impressed with the professional and customer-focused approach we maintained throughout.

HOW LONG DID THE PROCESS TAKE?

Quick Resolution: From the initial case placement in February 2024 to the final payment before August, the entire process was concluded in just a few months. This rapid turnaround highlights our efficiency and effectiveness.

CORE LEARNINGS

Empathy and Strategy: Cedar Financial’s success lies in our ability to understand and adapt to each unique situation.

Maintaining Relationships: We proved that recovering from debt is possible while preserving positive customer relationships.

WHAT’S THE TAKEWAY?

This case study illustrates how Cedar Financial’s innovative strategies and deep understanding of international collections led to a successful debt recovery. Our ability to turn complex challenges into triumphs sets us apart in the industry.

Positive Resolutions, Beneficial Results

2024 is going strong for Cedar Financial as we recover difficult accounts with more innovative yet flexible approaches. Our debt collectors are facing challenges but coming up with customized solutions to address them.

Our approach in Uganda demonstrates our commitment to both our clients and their customers. The debtor was relieved, and the client was appeased.

Cedar Financial – Putting People First