Advance Receivables Management

Receivables management is arguably the most important part of any business in Australia.

Advance Receivables Management

A business can essentially lose everything with bad receivables management during the payment phase of the sales process.

Most businesses fail because of either:

  1. Loss of capital; and
  2. Loss of revenue / cashflow.

As your accountant has probably said to you a number of times, cash is king. It’s true.

What is the Benefit of Advance Receivables Management?

Advance receivables management directly helps your businesses profit because it reduces bad debt and increases cash flow. Your business will also have better liquidity for use for acquisitions or investments – growth and expansion or personal wealth creation.

Advance receivables management can boost your businesses professional image.

Advance receivables management involves a lot more than simply reminding customers to pay their invoices. It is also about attempting to identify the main reasons for that non-payment.

Advance receivables management is a process which includes:

Conducting reference checks

Doing credit checks and insolvency checks for new clients

Investigating customers on google and social media

Checking where and to whom the invoices are to be sent

Finding out whether customers operate a payment run different you your payment terms

Factoring the potential for payment delays

Understanding why the debtor may not pay their invoices

Investigating potential trade credit insurance options

Why Outsource Your Accounts Receivable?

There are a number of valid reasons why a business should outsource its accounts receivables, and the management of your debtors ledger. These can include:

I.

You can concentrate on bringing new work into the business, sales and marketing.

II.

It may be more economical to engage professional outsourced accounts receivable, rather than engaging an in-house staff for the job.

III.

You can account for Advance Debt Collection to conduct the work in your bills, thereby reducing or eliminating your actual out-of-pocket expenses.

IV.

You may see better results by engaging professional accounts receivables managers who do this every day.

V.

Our professional systems and processes allow us to contact your debtors are regular intervals. Keeping in touch with debtors is one of the key factors in getting them to pay.

Our focus is on you, your business, and your success. We grow as you grow.

Tips for Good Accounts Receivable Management

As a professional debt collection and accounts receivables management company, we see the problems with bad debts every day.

We have a number of tips for good accounts receivables management, they include:

  1. Have a proven and legally binding application process.
  2. Have clear and concise credit approval processes.
  3. Have effective billing and invoicing processes.
  4. Maintain accurate customer details and records.
  5. Use Advance Debt Collection for your accounts receivable process.

Cash is king! It is important that your accounts receivables processes reflect this.

We also see that our client’s systems fail, which may not have failed had they utilized the following improvements:

  1. Assess your accounts receivable on a regular basis.
  2. Automate your accounts receivables processes.
  3. Invoice your customers / clients electronically where possible.
  4. Consider shortening payment terms to increase cash flow.
  5. Create a sound dispute resolution process with your invoices.
  6. Create a proactive aged debt collections process.
  7. Prioritise the credit management in your business.
  8. Reduce or eliminate all obstacles to accepting payments.

If this sounds like a headache, then let us do it for you.

Advance Debt Collection™ offer the above services, so you can concentrate on running your business and leave the accounts receivables to us.