Advantages to Outsourcing your Accounts Receivables

There are so many advantages to outsourcing your accounts receivable. The most common perception is that it may be expensive and that your customers will be put off by a 3rd party approach. The reality is that it’s normally cheaper to outsource that for the task to be handled internally. Also in most instances the process is handled as a ‘white lable’ facility. This means that it’s invisible to your customers as all communications are handled in your company name. Here are some other advantages:

• A professional accounts receivable collection company is just that, a team of professionals, trained to be courteous and efficient, and organized specifically around the collection process. The result should be more calls in less time and for less money. More calls made courteously and in a timely manner always equals better cash flow and lower bad debt losses. It’s always a wise move to meet with the team that are going to be handling your accounts.
• The process of outsourcing should be seamless, in other words, most of the time your customers won’t realize you’ve hired someone from the outside to handle this for you. Calls can be made and answered in your name and all communication will carry your brand identity.
• Outsourcing allows you to focus on your core business and do what you do best while experienced and trained personnel that you can count on, handle this important task.
• Staying in close communication with your customers is vital to an effective collection system. Outsourcing your accounts receivable keeps that courteous and consistent contact with your customers occurring without tying up your time or your staff’s time, resulting in better cash flow and lower bad debt losses.
• Fees are typically less than hiring and maintaining a full time employee. Outsourcing eliminates the time consuming and costly process of recruiting, training, and managing an employee. No sick days, no benefits and no overhead.
• A good outsourcing company will collect your receivables by using skillful collection processes and techniques. They will understand your particular receivable and be well equipt to answer your customer’s needs.
• A good company will provide you with regular reports on the status of your accounts, so that you always know what’s going on and enabling you to better manage your business.

To sum up; a professional accounts receivable outsourcing company should provide collection services effectively, efficiently, without upsetting your customers and without the addition of expensive personnel, added office space or your time to manage them or the collection process. HCM make the statement regularly that theses turbulent and unpredictable times require new credit management strategies. Success does not evolve, it is created, so if you agree that now’s the time to raise the bar in your credit management, then outsourcing your accounts receivable may be the answer for you.