Outsourcing accounts receivable is an efficient and cost-effective way to make sure a company is receiving payments it is owed. Below are some of the way outsourcing collections can help improve your business dealings.
There are a surprising number of costs involved with collections. Workers’
pay, paper and printing for letters, skip tracing databases, analytics software, certifications, and other necessary materials and technology to remain knowledgeable and compliant with regulations can quickly add up. Outsourcing allows you to remove these costs, and although you will still pay a fee to the third party company, these are usually outweighed by the money saved by not collecting on your own.
Make sure to do your research when choosing an agency and look for your best option. Sending out a RFP to different online databases can maximize your exposure and allow you to find an agency that will meet your company’s needs at the lowest rate.
You want to bring in the maximum amount of cash your company is owed, and what better way to do that than to work with people who do it for a living? Using the resources of a collections agency can increase your company’s revenue significantly by collecting on more accounts in a shorter cycle.
Agencies have their own tools and databases that allow them to analyze clients’ portfolios through things like skip tracing efforts, debt settlement scrubs, debt management companies, and geographic information – all efforts in compliance with industry laws and regulations. This makes it easier to distinguish whether or not an account is likely to respond with payment.
Credit Control’s use of our proprietary business intelligence (BI) platform allows us to dissect large sections of data into smaller, more meaningful data sets. This allows us to quickly identify anomalies and trends in portfolios, resulting in more dollars collected at a higher velocity.
The use of an outside company for your collections gives you a staff capable of dedicating 100% of their time and efforts towards collecting on past-due accounts. With full attention being given to this process, you maintain a shorter collections cycle, reducing the amount of time spent collecting on a delinquent account. It also frees up your own employees to focus on the job they were hired for, so your internal resources are being used to their full potential.
Another benefit of an outside company working your accounts receivable is they are already familiar with the processes and policies needed for this kind of job, removing the need to spend time learning. At Credit Control, we have a full team of experts trained on the laws and regulations of various industries including credit card, healthcare, student loans, city and municipalities, commercial, mortgage, and telecommunications. Whatever your collections needs, we have a team ready and willing to help in a compliant manner.
Increased Collection Rates
If you have employees who are untrained on how to collect accounts receivable, your company could be losing out on potential payers. Companies like Credit Control, whose sole focus is on receivable management services, can increase the rate of payments because this is our core competency. Where your business has other areas of importance to think about, we are able to give full attention to collections, making us more efficient.
Credit Control utilizes a state-of-the-art voice analytics software platform, which records 100% of our calls and reviews for compliance to all pertinent laws and regulations, adherence to client requirements, as well as probes for missed opportunities. Leveraging this technology gives our employees Voice-of-the-Customer analytical scoring feedback to continually improve their adherence to the strictest compliance protocols, performance, efficiency, and decision making skills. When combined with our BI platform mentioned earlier, one of the net results of these two technologies is greater netback in collections.
Asking clients for payment can sometimes cause tension for a company, but the benefit of outsourcing this task is the ability to distance yourself from seeming to be the bad guy if the individual is reluctant to pay. Third party collection efforts can leave your relationship with the consumer cordial and continuous.
Want to learn more? Contact Credit Control today to see how we can make your business’s collections more efficient.