Whether you’re a small and medium-sized business (SMB) or a large enterprise there’s one thing all companies agree on. Collecting unpaid debt isn’t enjoyable. However, it’s a fact of life, and in the wake of the pandemic unpaid debt is on the rise. Consumers and businesses are struggling to pay their bills, so much so that governments like the US have stepped in with short-term solutions like the Paycheck Protection Program (PPP) designed to help keep small-business afloat. Unfortunately, there’s a surge in payment delinquency that is sweeping the world. Now more than ever, having a debt management and collections system in place is critical to helping businesses survive.
Why Debt Management Is Important
A debt management and collections system helps businesses increase their cash flow, improve operational efficiency and boost collector productivity. Let’s break it down to three primary areas that use the system.
- Company: To improve cash flow, companies need to understand the accounts at risk, total amount of revenue past due and aging balances. All while having the ability to act on those factors with minimal involvement.
- Collection Manager: To improve operational efficiency, companies need to track collectors’ progress. This ensures that collection processes and strategies are consistently applied.
- Collectors: To boost collector productivity, companies need tools that prioritize accounts that need attention, automate notifications and alerts and streamline interactions with customers.
By adding technology to streamline the debt management and collections process, companies are able to improve cash flow, reduce collection cycles and improve the customer experience.
Simplify Collections Management
You need a better way to manage collections. One that will minimize bad debt write-offs, enhance employee productivity, and improve customer satisfaction. With the right debt management and collections system (one that combines billing, dunning and collections in a single solution) you’re able to proactively manage collections, reduce days sales outstanding (DSO), and improve your cash flow.
CollectionsCloud from BillingPlatform is an automated software solution that does just that. To illustrate how CollectionsCloud can automate the collections processes, let’s follow a typical collections case.
- A customer account is 7 days past due. At this point, a trigger is automatically generated to send an email reminder.
- An additional week has gone by without payment. The account is now 14 days in arrears, generating a second trigger for a call to be made to the customer.
- The customer agrees to make the minimum payment due within the next 5 days, and the promise to pay details are noted on the customer’s account.
- The promise to pay date has come and gone, with no payment made. At this point two triggers are generated, one to suspend the account and another to send a second email notice.
- Three days later payment is made, which initiates another trigger to resume service.
With CollectionsCloud, you gain more control over outstanding invoices. The Collector Dashboard provides a comprehensive view of outstanding accounts including a prioritized list of accounts that require attention. For customers who are delinquent, collection strategies can either be fully automated or have a mix of automated and manual strategies. Strategies can also be tailored to customer segments based on predefined parameters. Then performed at predetermined intervals after an account enters collections.
Without an automated debt management and collections system, tracking past due accounts is one of the most time-intensive activities collectors face. And as with most manual activities, prone to errors. Errors that if unresolved can have a negative effect on your profitability.
The Power Of An Automated Debt Management And Collections System
Given the complexities of the receivables process, including accounts at risk, past due payments, or losing track of aging balances; manual processes can (and do) result in revenue loss, decreased productivity, and customer discontent.
Isn’t it time to automate your collections processes? With BillingPlatform, you have total financial control to run your business with greater efficiency, accuracy and control. Talk to our team today and learn more about how CollectionsCloud gives you the power to automate collections, dunning, notifications, and much more.