Considering Outsourcing all or Part of Your Collections Management?

Here are some reasons to do so -

  • Payables, payroll and other business functions are routinely outsourced at a recurring expense. So why not the receivable process?
  • 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 debts.
  • 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 client’s company.   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 procedures.
  • 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 company.
  • 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 certification.
  • 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 choose.
  • Any and all reports which detail disputes, should be forwarded to you as they occur.. not only on a monthly basis.
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