Debt recovery carried out at an early stage, also known as accounts receivable management, is carried out to avoid debt becoming serious, treat customers fairly, and collect arrears at an earlier stage, no matter if they are commercial or consumer debts. According to a report published by the Department of Industry Innovation, Science, Research and Tertiary Education, the survival rate for small businesses after four years of operation is 59.7%. Unsurprisingly, accounts receivable and further cash flow issues play a crucial role in such a situation.
In a perfect world, every client would pay their bills within the specified terms. However, only a small proportion of businesses can pay on time, which can frustrate the suppliers and worry the business owners because it affects a company’s ongoing cash flow situation. Fortunately, there are specific techniques that businesses can use to help mitigate serious overdue.
Although accounts receivable seems to be a traditional in-house function, most small businesses may lack professionals or the relevant resources to collect debts in a quick and efficient way. Which may end up with more expensive formal debt collections, mediation or litigation. And make the delinquent debts an expensive problem that hurts your business’s operations. So within debt collection, there has been a movement in emphasis over the last several years towards prevention rather than treatment. Now, the objective is to treat customers properly, prevent debt before it becomes serious, and recover arrears as soon as possible.
There is still work to be done, even if many collections departments have recently undergone transformations thanks to the adoption of multi-channel, digital collections that improve client engagement and sharply cut operating expenses. Companies that use professional collections services save money on operating costs for each payment and relationship, which can help businesses collect payments sooner and more efficiently before problems arise.
Xservice Debt Collection, as a professional debt recovery agency, can help businesses identify which consumers are at risk of falling into arrears. Utilize data to analyse payment histories and forecast the likelihood that clients will miss a payment, and keep an eye on your customers' situations if they are reported in default by other creditors, are involved in litigation, external administration, liquidation, or have significant changes in the registration information.
Xservice Debt Collection provides services that are tailored to your clients' payment schedules, service schedules, and billing needs. Can help you increase early-stage payment rates and first-time resolution, send reminders for payments on time. We can help you cut down on costs incurred later in the collection cycle and follow regulatory recommendations. Do not hesitate to schedule a free consultation with our professional debt collectors if you are in Melbourne, Sydney, Brisbane or Perth, and are interested in early-stage debt collections.