Collect Bad Debt

Ormita offers businesses a way to collect bad debt without the need for litigation.

Ormita allows the debtor to pay in products rather than cash and will supply the creditor with advertising or other goods and services in return.

This is useful for debts older than 120 days where the debtor is unable to pay in cash.

Who Needs This Solution

Creditors• Owed money more than

120 days overdue• Those who owe you are at

risk of not paying• Cost to collect overdue

money is high• Long-time to collect• Value of the debt may be

low or high• You need the debt repaid

now• Repossessing assets

means you will not receive full value

Debtors• Having difficulty repaying

debts• You cannot pay until

others pay you• You have products which,

if sold, could repay the debt but you are having a hard time finding more customers

• Interest and finance charges to borrow money costs a lot

• You want to fix your credit history

It is common for a debtor to have surplus stock but not surplus

cash!

Ormita can take Debtors products and give you

something else of value in return

Why do this?• You may not need the product that the debtor

sells• It may be difficult to re-sell the products

immediately for cash• If product re-sold it is usually at a discount• If the debtor could not sell the products for cash

then it is likely that the creditor may also not find a way to sell these products

www.ormita.com

This is an Indirect Exchange

HOW IT WORKS

Step 1

You lodge details of the debt with Ormita

Step 2

Ormita contacts the debtor

Step 3

Ormita receives product from the debtor instead of cash

Step 4

You now have a credit in your Ormita account which you can utilise to purchase other goods

and services in the Ormita network.

Step 5

You do not need to receive the same goods as the Debtor has provided to Ormita. You can

select from any other products or services in the Ormita network.

Congratulations !!

You have just converted a bad debt into goods and services that you need!

BENEFITS

Overview of Benefits

• Fixes the problem of very overdue cash• Receive value rapidly• Quicker than litigation• Maximizes the value of what is returned• Reduces costs (collection, legal fees,

interest)• Reduces risk (unpaid bills, business

cash-flow being affected)

Fixes Overdue Cash Problems

• Collect debt before it becomes too late!• Get in line before other creditors• Spend barter credit to buy what you need• Debtors pay with goods, making it easy• Use trade credits for advertising or

marketing• Opportunities to purchase internationally• Take action before it’s too late

Reduces the Cost of Collections

• Accepting payment now reduces the cost to collect outstanding money later

• Collection costs• Legal fees• Time• Consulting services• Interest• Need to borrow money to cover short-

term costs

Minimises Risk

• Reduces the risk of long-term debts being uncollectible

• Receive something of value now instead of later

• The older the debt the less chance that a debtor will repay

• Creditors may receive an asset, in hand, instead of a paper “promise”

Protects Your Profit

• No reduction in value of the debt versus what you recieve

• You turn an outstanding debt into an asset

• You have used a debt to buy things you need

• Cash is saved by the business because you have reduced your cash expenses without decreasing your purchases

PRESS COVERAGE