Outsourcing all or Part of Your Collections
some reasons to do so -
- Payables, payroll and other business functions
are routinely outsourced at a recurring
expense. So why not the receivable
- Unlike in-house staff that can be prone to watch
a clock and “let the job expand to the
time allotted”; an
outsource company does not get paid
unless they collect!
Further, the better A/R
management companies allow their
client’s access to their systems …
they know the client is watching which
is an additional incentive to “take
care of business”.
- A/R outsourcing significantly reduces overhead
expenses for letters, phone calls,
hiring and training.
- Provides a consistent and surgical approach by
A/R Experts thereby increasing the
amount and velocity of your cash.
- FTE’s become available for reallocation with
the organization so they can focus on
core business needs.
- A/R outsource professionals are properly and
continually trained in the latest
collection / resolution techniques.
- Management can be free to focus on the front end
credit extension / due diligence
process. In so doing, the quality of the
overall receivable portfolio can be
dramatically improved. The improved
quality will minimize the risk of bad
- Improved customer retention. People and companies
enjoy doing business with companies that
can resolve issues promptly and
efficiently. Credit professionals which
focus on the root cause analysis of
customer delinquency, thereby
contributing to the overall enhanced
customer service levels.
What to look
for in an Outsourcing Company -
- The outsourcer will be a reflection of their
A professional A/R management
company will have the capability to
promote and preserve your image.
- The agent should be able to manage your business
in accordance to your policy and
- The outsourcer should also have the ability to
provide their services transparent from
your customer. They should be able
respond as if they were part of your
- The A/R outsourcer should be Certified by the
Commercial Law League of America.
The CLLA certification requires the
agency to maintain the highest standards
of ethics and practices. The agencies
are required to be spot audited several
times a year to insure compliance to the
certification guidelines. Only 105 out
of over 4,000 agencies carry this
- Meaningful activity recaps reports generated on a
frequency acceptable to your
organization. Reports on disputes
are generated to you as they occur, by
phone, email or fax, which ever you
- Any and all reports which detail disputes, should
be forwarded to you as they occur.. not
only on a monthly basis.