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5 Reasons for Using Offsite Accounts Receivable Services

by Erica Nelson on October 16, 2014

Offsite Accounts Receivable Services

Some companies may find value in using offsite accounts receivable services. All debt collection processes begin in a company’s account receivables department, an often under-appreciated branch of any size business that is responsible for keeping track of incoming revenue. Despite the best efforts of competent account receivables professionals to handle the collections aspect of their business, the demands of sustaining a successful collections system can overwhelm employees and lead to the business losing substantial amounts of revenue that could be more efficiently secured by offsite services.

5 Reasons for Using Offsite Accounts Receivable Services

1. Your Business is Suffering from Lack of Attention

As overdue accounts accumulate, companies tend to focus more on these debts instead of what is vital to the ongoing success of the business- its core competencies involving sales, marketing, and creative developments. Consequently, older, more difficult accounts owned by uncooperative customers are best left to offsite accounts receivable agencies skilled in “third party” methodology intended to motivate remittance of debts.

2. Collecting On Past Due Accounts is Complicated and Time-Consuming

The difficulty in collecting past due accounts involves more than just making phone calls to a delinquent payer. A professional accounts receivable agency employs the innovative, strategic, and ultimately fundamental techniques and methods meant to initiate closure to accounts blighted by nonpayment. Expert agencies leverage the creditor’s legal abilities to collect based on language included in the agreement or contract signed by the both parties. The amount of research necessary to launch and eventually conclude a past due account is not only costly and time consuming for a business, but may also be detrimental to the overall viability of the company.

3. Your Business Can’t Afford the Software Needed to Expedite Collections

Sophisticated computer software utilized by an offsite accounts receivable and collections agency is expensive and typically does not offer a positive ROI for businesses that invest in them. Third party agencies already have such software implemented into their system that allows them to efficiently merge and coordinate all accounts for the sole purpose of expediting recovery and resolution times.

4. You’re Spending Too Much Money On Trying to Collect On Past Due Accounts

The business has exhausted its internal endeavors to collect on debts past due and spent funds meant to finance operational aspects of the company. Expenditures needed to pursue debts increase exponentially as an overdue account ages. In other words, the likelihood of receiving payments on past due debts diminishes significantly over time.

5. An Offsite Accounts Receivable Agency is Licensed and Bonded

Bonding, insurance, and licensing requirements are already established by offsite agencies that abide by state and federal laws governing the collections industry. Regular training, monitoring, and compliance testing of these specialized agencies is required by law as well. Businesses attempting to collect on past due debts that are not compliant with legal maxims concerning this aspect of accounts receivable may find themselves involved in expensive litigation and reputation repair.

Bottom Line

Company resources are best spent focusing on consistently mobilizing and unifying all departments for the purpose of attracting and retaining customers and securing sales. Allowing a qualified, experienced offsite accounts receivable agency to manage delinquent accounts not only streamlines a company’s operations, but also contributes to sustaining its viability, reputation, and ability to experience consistently high revenue rates.

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