Actual

LLC Paus Konsults wins nomination Supergazele. [03.11.2011]

For several years now LLC Paus Konsults is included into Gazeles (Gazelle Companies) Top compiled by „Dienas Bizness” and „Lursoft IT” as one of companies with the highest growth rate in Latvia. After assessment of performance of Latvian companies in 2010 LLC Paus Konsults received nomination Supergazele and has the second place in the Supergazele top compiled by „Dienas Bizness” and „Lursoft IT”.

Many global business media and Dienas Bizness label high-growth companies Gazelle Companies.

Dienas bizness compiles the list of Gazeles traditionally in cooperation with the company Lursoft IT, which collates data submitted to the LR Register of Enterprises by companies. According Gazeles criteria the list compiled by Lursoft IT is submitted for verification to the State Revenue Service thus ensuring eligibility of companies on the list for the status of a respectable company. The list is also verified by Dienas bizness industry journalists.

The list of Supergazeles is comprised of companies operating in very diverse industries, which proves that fast growth over a period of several years is not possible by mounting a moving train; a company must be a farsighted engine itself leading its rolling stock. Industries on the list are represented by agricultural produce manufacturers, debt collectors, peat extraction companies, forest managers, merchants and also representatives of very specific industries.

Growth of turnover of debt recovery company Paus Konsults has reached 1 296%. During these years the company has become one of the two leaders in debt recovery market with a turnover of 1,6 million lats, moreover, the company's market share by the number of cases submitted for debt recovery has reached approximately 46%. „Since the end of the last year the company has worked more actively on selling the company's services and already we see the return. Strategy is very important to succeed,” states LLC Paus Konsults Legal department director Aija Zirne, anticipating continuation of the company's operations' positive trends this year as well.

LLC Lursoft IT board member Daiga Kiopa: „The number of Supergazeles in 2010 has decreased compared to 2009, currently there are 13 companies, the last year -16. We are especially proud of the results of Supergazeles, their persistence and continuous development because nine domestic companies have got onto the list, i.e. companies operating with 100% Latvian capital.”

Explanatory information
In order to be included into the list of high-growth companies Gazeles list, the company has to be eligible according to the following criteria:

continuous growth of turnover over the last three years (2008– 2010);
turnover in 2008exceeded 100 thousand lats;
the company has positive equity;
the company worked with profit in 2010;

In order to be included into the list of high-growth companies Gazeles, the company has to be eligible according to all Gazeles criteria three years in a row with one special condition - growth of turnover over each three years has been at least 100%

Money needed to start the heating season [13.09.2011]

Public utilities service providers pay more attention to the problem of debtors putting into practice more forward-looking, more efficient methods to recover debts that provide results sooner and are more cost efficient than litigation.

LLC Rīgas namu pārvaldnieks intends to borrow 4,5 million lats to start heating apartment houses in Riga.

The company has announced a tender to rise funding, informs the largest manager of dwelling houses LLC Rīgas namu pārvaldnieks chairman of the board Ervins Straupe (Ervīns Straupe). He also admits that the total amount of debt in Riga at the end of the season had reached the amount of 20 million lats. „As of now we work on structuring debts by amounts and payment terms. We do not single out specifically heating debts. If we pay Rīgas Siltums, the customers are indebted to us.

Debtors are concerned with covering public utilities debts first and only afterwards other outstanding debt obligations, has observed the board member of debt recovery company Paus Konsults Baiba Priedite (Baiba Priedīte).

„Those who actually cannot pay go to municipality and request social assistance. We have customers who have lost their jobs just now, but in their case the debt usually does not amount to three, four thousand lats, instead it could be two or three hundred lats. There are different customers, some of them make use of the offered opportunities, some don’t, „ tells E.Straupe. As he told us the „average dissatisfied” customer of the company is that same customer with a debt amounting to several thousand lats and often those debtors ask to extinguish the penalty and promise to pay. Though actually such a debt indicates that the person has made no payments over a longer period of time and has not looked into possibilities to settle the debt.

Lately LLC Paus Konsults cooperation partners' numbers have increased due to influx of public utilities and house-management service providers, confirms B. Priedite. „This year we concluded cooperation agreements on use of debt collection services with 56 enterprises operating in areas related to provision of public utilities and house-management services. The number significantly increased in 2011. Public utilities service providers pay more attention to the problem of debtors putting into practice more forward-looking, more efficient methods to recover debts, which provide results sooner and are more cost efficient than litigation.” Although, she says, service providers submit the debtors for collection late, when the debt has accumulated and the debtor could already have left the indicated address. Submitting a debt for collection in a timely manner makes its recovery 40% more efficient than recovery of a debt submitted for collection after a long period of accumulation, stresses B. Priedite.

B. Priedite recommends to begin the work with debtors in a timely manner. „Undeniably we presently also face many house-managers who accumulate the debts until they reach a certain amount and only then start to think about acting on non-payers, but our experience proves that at the moment the amount of the debt has reached some hundreds of lats the debtor has already lost desire, motivation and ability to start repaying it.”

State and municipal authorities lately publicize many different ideas on possible course of actions in the present difficult situation with public utilities debts - publicizing information on debtors, creation of a common public utilities payments debtors' data base, bringing massive cases against the debtors before court. But along B.Priedite these ideas are hard to implement and ineffective, but litigation is time-consuming. The most effective way would be immediate submission of public utilities payments' debts for collection, but in cases when a debtor either with malicious intent or due to other reason is not ready to fulfil his obligations, bring the case before the court.

SOURCE: Money needed to start the heating season/Dienas Bizness 13.09.2011. No. 165 (4093) – page 13

Paus Konsults still dominates the debt recovery market [15.08.2011]

The aggregate turnover of TOP 10 debt recovery companies decreased by 12% and amounted to 4,99 million LVL during the last year. One of the companies showing growth is Paus Konsults, which increased its profit sixfold as a result of raising its turnover by 30% during the last year.

In 2010 the debt collectors have shown very diverse results - some have been able to increase their turnover; others in their turn have not been able to maintain their previous amount of business. The aggregate turnover of TOP 10 debt recovery companies decreased by 12% amounting to 4,99 million lats during the last year. One of the companies showing growth is Paus Konsults, which increased its profit sixfold as a result of raising its turnover by 30% during the last year.

Data summarized by Latvian-of-Court Debts Recovery Association shows that the total number of submitted cases in the last year went down by 5,4%, the amount - by 3,9%, and the results of companies in the industry have to be viewed in connection with the negative trends in development of the industry.

Presently we can surely say that two companies dominate the industry: Creditreform Latvija and Paus Konsults. The turnover of Paus Konsults during the last years has shown constant growth, the company has also gained the status of a high-growth company assigned by Dienas bizness in cooperation with Lursoft - Gazele. In 2010 scope of the company's activities grew by a third, which allowed reaching a turnover of 1,6 millions of lats. LLC Paus Konsults Legal department director Aija Zirne (Aija Zirne) predicts that positive trends in the company's operation will keep up this year as well.

According to information publicly voiced by the association of the industry and the market leaders it is possible to make out companies' scope of business based on the number of submitted cases and respectively - the probable market shares. Last year members of the Association have received in total 419 thousand cases. As comparison Creditrefom Latvija received 115 thousand cases, which constitutes a decrease by 36%, Paus Konsults on the other hand has received 194 thousand cases, thus the number of cases submitted to the company has increased by 28%, which allows us to conclude that market share of both industry leaders by the number of cases constitutes a little more that 70%.

Analysis of debt proportion by different industries according to Paus Konsults Legal department director Aija Zirne (Aija Zirne) shows that:” debts in baking sector are decreasing, but the number of debts in the non-bank creditors' sector and for public utilities is increasing. Moreover, it seems that public utilities service providers do not use debt recovery to its full capacity.

SOURCE: Debt recovery market leaders emerge., Dienas Bizness 15.08.2011, Nr.144(4072)/ page 1, 4

LLC Paus Konsults - leader of the debt recovery market [01.03.2011]

LLC Paus Konsults dominates the debt recovery market from private persons with approximately 60% share of the said market

In the magazine „Latvia's largest companies TOP 500 2011” Dienas Bizness in cooperation with Lursoft published:*

„More than 70 companies operate in debt recovery industry, around 400 people are employed, the industry is represented by foreign – mainly Scandinavian companies, and by companies founded by local owners, but only a little more than ten of them play a significant role.„

According to data summarized by Latvian-of-Court Debts Recovery Association – the debt recovery market from private persons is dominated by Paus Konsults with an approximate share of market - 60%.

All-in-all Latvian-of-Court Debts Recovery Association's member companies have been submitted debts in amount of more than 150 million lats in 2010, thus relieving the courts by collection of debts (debt recovery without bringing an action before court).

* TOP 500 is the only edition in Latvia carrying out unbiased assessment of companies based on their financial results laid out by industries and by key financial parameters during the respective period (profit, longterm investments a.o.) for 14 years

SOURCE: D.Skreja. Redivision of market takes place / Dienas Bizness in cooperation with LURSOFT / Latvia’s largest companies TOP 500 2011/ 2011 -page 111

16,2 % of companies’ owners and executives delay payments [17.02.2010]

Credit management company SIA Paus Konsults and the developers of legal entities’ database Firmas.lv have conducted a study to found out how many owners and executives of companies registered in Latvia’s Commercial Register have problems with their personal credit payments. The results of the study show an increasing number of company owners with unsettled debts in the database.

The study used information from database Firmas.lv, which, in turn, contains data from the Enterprise Register, and its entries were compared with the information on delayed payments from debtors’ database Risk.lv of SIA Paus Konsults.

There are private individuals behind each company. They are its owners and managers who, like any other natural person, may have a positive or negative credit history. When Latvia’s economic situation dramatically improved, many of them started business. It was a good time for building, trade and delivering various services, as banks were supportive of and offered various packages to those starting a new business: cash loans, consumer loans, overdrafts, credit lines etc. Yet already at that time many credit institutions were cautious enough and asked the loans being issued to legal entities to be guaranteed by companies’ owners and executives. Now, in economic crisis, when companies are unable to meet their obligations to creditors, these individuals are to assume liability for the loans they have guaranteed.

The results of the study show this is the main reason why many owners and executives of companies have found themselves in the debtors’ database now. Still, it cannot be denied that many entrepreneurs show a negligent attitude to settling their personal liabilities, and these cases also make statistics.

From now on customers of Paus Konsults using the database of Firmas.lv will be able to check the credit history of owners and executives of their partner companies and receive information about their unsettled obligations.

Only 6% fully aware of consequences of not fulfilling credit liabilities [15.04.2009]

Paus Konsults and GfK Baltic have carried out an opinion poll to find out the awareness of Latvians about consequences of not fulfilling credit liabilities, which has highlighted significant contradictions. According to the poll results, 70% of respondents believe that they are aware of what are the consequences of not fulfilling credit liabilities. Yet a deeper study has shown that only 6% of respondents can name all actual consequences of not fulfilling mortgage loan, car leasing and short-term loan obligations. A majority of respondents does not know that mortgage loan and car leasing liabilities are not limited by the value of collateral. The most light-minded attitude was shown towards short-term credit liabilities – residents are not aware of the fact that consequences of not fulfilling credit liabilities are similar to those of long-term loans.

The consequences of not fulfilling short-term credit liabilities is what the respondents are worst informed about. Only 15% of them have ticked all possible consequences of not fulfilling credit liabilities in given answers. 16% of respondents are fully aware of the consequences of not fulfilling mortgage loan liabilities, and 19% – about the consequences of not fulfilling car leasing liabilities. The opinion poll shows that 58% of respondents know that consequences of not fulfilling liabilities are the same for both long-term and short-term loans, but 38% believe that consequences of not fulfilling liabilities of a mortgage loan are more serious.

The most frequently mentioned consequences of not fulfilling mortgage loan liabilities are: damaged credit history (83%), alienation of the real estate (80%), as well as that the guarantor is also liable for the loan (70%). Only 60% of respondents are aware of the fact that they will have to continue repaying the loan even after the real estate is alienated. The most frequently mentioned consequences of not fulfilling car leasing liabilities are alienation of the vehicle (84%) and damaged credit history (78%). Much fewer people are informed about the fact that they will have to continue repaying the loan after the car is alienated (56%) and the guarantor is also liable for the loan (56%). Only one of every four respondents knows that his/her real estate may be alienated unless he/she pays the car leasing.

As for the consequences of not fulfilling short-term credit liabilities, a majority of respondents (80%) mention damaged credit history. Much fewer people are aware of the fact that for not fulfilling their credit liabilities they can lose their real estate (only 19%), movable property (27%) or their guarantor may be asked to repay the loan (44%). Moreover, 10% were unable to answer the question about not fulfilling short-term liabilities.

Paus Konsults to start co-operation with AS Latvenergo [27.10.2008]

Paus Konsults has a won a tender for the right to recover debts from debtors of AS Latvenergo. Co-operation with one of Latvia’s biggest companies is evidence to more than 10 years of successful and professional operations of Paus Konsults in the field of debt collection.

Average Latvian debtor: 40 years old man with a debt of LVL 500 [18.04.2008]

An average Latvian debtor is a 40-year old man with a debt of 500 lati and living in one of Latvia’s regions, according to data of credit management company Paus Konsults, which has developed the debtor’s social demographic portrait. Despite constant improvement of debt collection process, the number of debt collection cases continues growing and debt collection becomes increasingly complicated.

The study about debtor’s social demographic portrait has been conducted to find out the real situation. The results of the study show that 57% of all debtors are men and 43% are women. 49% of debtors are at the age of 26-49 years and 31% are at the age of 18-25 years. 72.3% of all the debtors included in the database are living in Latvia’s regions and only 27.7% in Riga. Except Riga and Riga district, most of debtors are living in Liepaja and Liepaja district – 6.2%, Jelgava and Jelgava district – 5.5%, Daugavpils and Daugavpils district – 5.3%, Ventspils, Talsi, Ogre and other districts – 3.1%. The share of debtors in other districts of Latvia is below 3%. A majority of debtors, 82%, are working in private sector. 12% of debtors are employed in public sector and 6% are pensioners. 43.9% of debtors owe less than 100 lati, 42.6% – from 101 to 500 lati. A majority of debts are due for consumer goods and services. 0.9% of debtors owe from 5,001 to 100, 000 lati.

Paus Konsults offers new service – person’s credit rating [18.03.2008]

A person’s credit rating provides the creditor with information on the solvency of the potential credit recipient and potential risks of lending money to this person.

The credit rating is calculated using 24 criteria.Persons’ credit ratings are developed using information about the debtor provided by our partners, as well as obtained by credit management company Paus Konsults in the process of recovering debts. The credit rating is calculated using 24 criteria, for example, whether the debt was repaid by the debtor or a third party, whether the debtor has an addiction to alcohol, drugs, gambling, whether the debtor has adomicile, what is his/her personal attitude etc.

Paus Konsults wins debt collection tender of AS SEB Unibanka [18.03.2008]

Credit management company Paus Konsults won a debt collection tender organised by one of Latvia’s major banks, AS SEB Unibanka.

It means that from now on debtors of SEB Unibanka (delayed payments for credit cards, credits, leasing, overdraft services etc.) will be entered in data base Risk.lv, which will thus include information about payments of debtors of all major Latvian banks and financial institutions, as well as companies and public service providers from various sectors of economy.