A few months ago, VVM Debt Recovery Specialists, a Johannesburg-based debt recovery company with more than three decades of operating experience, found itself facing a challenge familiar to many of the job seekers it engages with daily. Like young professional struggling to gain experience because they lack a track record, the company found itself desperately needing to prove it could operate at a larger scale before securing the funding required to reach that next level.
The company required substantial funding to take on three new contracts that would expand its call centre from 600 to 800 employees, but banks were reluctant to finance the growth without evidence that the business had already been operating successfully at that scale.
VVM specialises in recovering outstanding debt on behalf of several corporate and mid-sized credit providers, primarily retailers and telecommunications companies, as well as businesses such as gyms. With a strong focus on credit rehabilitation, much of its work involves contacting defaulters and slow-paying customers through its call centre, helping clients recover outstanding amounts while assisting consumers in restoring their financial standing.
“The banks typically look at your last 12 months of trading performance,” explains VVM CEO Lior Woznica. However, with the debt recovery industry still recovering from the effects of the Covid-19 pandemic, which severely impacted many debtors’ ability to repay, VVM’s recent trading history was not strong enough to satisfy traditional lenders. Adding to the perceived risk was Lior’s ongoing acquisition of the company from its founder, who was retiring.
Fortunately, Lior found a financier whose approach closely mirrored VVM’s own philosophy toward job seekers. As a matter of policy, VVM recruits unemployed young people and trains them as call-centre operators and other skilled professionals. Rather than focusing solely on prior experience, the company looks for potential and the willingness to learn.
Business Partners Limited adopted a similar outlook, according to Lior, the financier focused on the company’s future growth prospects rather than relying exclusively on its recent performance. Business Partners Limited approved funding through a five-year term loan, enabling VVM to proceed with its expansion plans.
Expanding a call centre is a capital-intensive undertaking. The company’s premises had to be reconfigured to accommodate an additional 200 employees, while new desks, computers and other infrastructure needed to be installed. However, a significant portion of the investment was directed towards recruiting and onboarding 200 young people entering the workforce for the first time.
Tabetha van der Walt, VVM’s chief of staff and co-shareholder, recalls that on one interview day the queue of applicants stretched around the building. Each successful candidate undergoes intensive training at the company’s in-house training centre. New call-centre operators do not become productive immediately, meaning that part of the expansion finance was needed as working capital to cover salaries while employees gained the skills and experience required to perform effectively.
Lior and Tabetha are particularly proud of VVM’s culture of development and empowerment. Only two members of the management team were hired externally. The rest progressed into leadership roles after starting in entry-level positions. One billing administrator, who now holds a diploma in Financial Management, began her career at VVM as a cleaner, says Tabetha.
Lior’s own journey reflects the opportunities the company creates. Having joined the company 29 years ago, just five years after it was founded, he has witnessed its growth from fewer than 50 call-centre operators to the current workforce of 800 employees.
Looking ahead he believes the debt recovery industry has turned a corner and that VVM is well positioned to continue growing in a controlled and sustainable manner. That growth will create opportunities for hundreds more young South Africans seeking someone willing to look beyond their lack of experience and recognise their potential.
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