Fortify your collection policy with technology to maximize the policy’s impact to see more money in your pocket.
Your collection policy sets forth all of the steps from sale through invoicing and collection efforts. Included are checks and balances to support the efforts including documents, calendared dates for follow up and further steps, scheduled calls, billing dates, correspondence, installment billings, payments, and more.
For many, some or a portion of the effort is manual. In order to ascertain who is in default or who should be on a no ship or which accounts need to be liened, someone needs to mine for the data.
The process of gathering the information is time consuming, leaving very little time for the business at hand whether it be sales or actual collection. Reliance is mistakenly placed on the employee to obtain the information rather than programming the system to give you what you need.
The need to proceed with a search or figure out a work around is not always voluntary. At least it does not seem that way. Off the shelf industry specific software can not anticipate all of your needs. Custom programming will be needed to get the job done time and time again.
While some will invest in custom programming to fortify their collection policy there are others that hesitate.
A simple cost benefit analysis should easily convince you of the need. In extreme cases, failure to support your policy with technology can cost you your business. You can easily continue to do business with non-payors, miss lien dates and more. The mere cost of employees needed to mine data may be unaffordable.
Even the very best collection policy without technology behind it will cause you to collect fewer receivables thereby decreasing cash collected. Failure to collect receivables within industry standards, will cause an inability to qualify for financing.
Why not fortify your collection policy with technology to insure you collect the most that you can?
If you need help designing a collection policy or need help getting paid, contact FFGN. We have the experience that pays….