The Benefits of Outsourcing Accounts Receivables Management
Are you looking for answers to the many questions around the right accounts receivables and collections service provider?
February 4, 2011 (PaymentsMarket.com) - As businesses grow and more people are making purchases online or through their mobile phones, the need for secure online payment options has become a necessity. So has the need for more efficient and effective collection and accounts receivables management. Managing any purchase, billing, charge backs and collections can be an arduous task when trying to do it all by yourself in-house. This is especially difficult when dealing in a card-not-present (CNP) environment or if you are trying to offer mobile commerce. The billing and collection options available for merchants offering single pay or recurring payments, trial and subscriptions are better than ever, but choosing the wrong service provider can have a negative effect to your bottom line if you’re not careful.
Retailers and direct marketers have significant investments in their marketing programs and customer acquisition and your billing and collections program should weed out the bad debt, from the rest to support a longer customer lifecycle.
If researching options to outsource your collections or receivables management, you should consider much more than price alone. Review your outsourced collection providers industry experience, approach to customer service, collection ratios and customer retention. These are all vital to growing your programs and assure your operations are supporting the marketing side of the program.
Effective collections and receivables management is a blend of art and science. Introducing the proper mix of technology and customized services will meet the needs of individual business, without adding higher cost or increased overhead. Whether you are a retailer, healthcare provider or in the direct response industry, you should take a look at the many options available to provide the most complete outsourced collections program possible.
According to Bob Graham, Senior Vice President of SKO Brenner American, one of the nation’s premier outsourced collections and accounts receivables management firms, “all parties benefit from a dedicated team whose sole purpose is to ensure that a high level of customer satisfaction is achieved, while accelerating cash flow and payments received for our partners.”
Program features to consider include pre-collection, invoicing, domestic and offshore call solutions, letter generation, management of bad addresses, database analysis, consulting services, cash applications and an overall holistic view of customer retention.
Samples of the types of services available from outsourced collection companies such as SKO Brenner include:
- Early-outs programs are where the receivables management provider to speak as a first-party representatives of the company’s collection department. This is one of the more effective approaches after an account has been defaulted within 45 days.
- Full service support allows the collections provider to explore all communication methods on behalf of the client. Whether its telephone, mail or online the company’s need for involvement in the collections process is significantly reduced and handled by the service provider.
- Contingency Collections, on the other hand, utilize a third-party approach for more difficult billing situations where accounts have exhausted a customer retention effort. In this case the consumer can be contacted as a third party.
- If a company is in a more regulated industry such as healthcare where HIPPA plays a role, then you must take extra care in choosing a partner to manage your medical receivables. When privacy and security is critical and compliance is required, then your service providers approach to compliance throughout their entire recovery program, including scripts are critical to your ability to maintain HIPPA compliance.
So when considering who to outsource your collections and receivables program to, be sure to look at the whole program, service, support and ability to maintain HIPPA compliance.
You can learn more about SKO Brenner and accounts receivables management solutions http://eleadsmanager.com/sko.