RealPay: The Proactive Approach Towards Effective Cash Flow Management and Less Bad Debt

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 24, 2012 -- As the aftermath of the downturn in the economic performance plays itself out consumer pressure will remain a reality in the short to medium term. The period 2008 to 2009 saw a significant increase in arrears and unpaid school fees resulting in increased bad debt. Therefore, a focus on cash flow management remains a priority to educational institutions in safeguarding bottom line performance. For this purpose ensuring that school fees are paid on time remains a key focus

area. This focus will also minimize bad debt and avoid the financial as well as the psychological impact of bad debt
and bad debt collection both on the institution as well as the parent.

The national payments environment evolved significantly in the past decade allowing innovative solutions supporting convenient and effective payment collections to be developed and introduced. The RealPay solution has been successfully introduced into this market and already assisted various institutions in managing cash flows efficiently. The RealPay system operates in the early debit order stream and is governed by the South African Reserve Bank.

The system allows you, the school and its finance department the following:

• Immediate payment collection – School fees are collected from the obliged payee’s bank account immediately after the national salary pay run therefore collection is presented at an optimal time when funds are available in the account;

• Tracking of accounts – an excellent functionality where an account is “flagged” for a chosen number of days. Should funds not be available at the first presentment, subsequent collection attempts are presented for the chosen number of tracking days;

• Convenience – Once the school fee payments have been agreed and contracted, future dated payments can be loaded and success rates easily monitored via real time reporting on the RealPay website.

The efficiency of the Realpay solution is reflected in the testimony received from Mr. Barend Erasmus principal of Edendale Independent School:

“Edendale Independent School consists of a High School and a Primary School. The school's creation and the history go as far back as 1906. The Primary School as it starts today is 16 years old and the High School is 8 years old. We have an enrollment of approximately 500 children. By applying RealPay, the school’s collection rate significantly improved. The reporting system is user friendly and enables more effective monthly collections and follow-up of outstanding school fees. It's definitely a product that every private school should consider” says Mr. Erasmus.

In addition to the above elements the system through its flexibility can be effectively and easily applied in collecting arrear accounts. This is a soft collection approach allowing the school to make payment arrangements with parents and thereby
avoiding the legal collection route.

For more information contact John Janse van Rensburg on 083 234 9880 / 012 664 4104 or e-mail your enquiry to
john@realpay.co.za