Collection software: what are the advantages? – Silicon

Debt collection is one of the main focuses of a company’s policy, regardless of its turnover and its workforce. To recover funds held by certain customers, collection software is the best tool. What are the advantages ?

What is recovery software?

the recovery software is a tool or computer program that automates collection procedures, i.e. accounting and management of unpaid bills. It integrates with existing accounting and invoicing systems, and allows them to personalize payer profile data (via Artificial Intelligence). It has several new features (the collection diary, for example) and is a valuable aid for managing disputes. It also defines credit rules, guarantees the financial health of companies and secures their cash flow.

A word of advice: don’t forget that unpaid bills and late payments are one of the causes of business failure.

What are the benefits of collection software?

Collections software offers multiple benefits to the business. Check them out below.

Reduction of payment times

A trick to solve the problems of non-payments is to make an online payment system available to customers. The collection software embeds this functionality, which reduces payment times. Indeed, some customers do not support the weight of debt on their conscience and prefer to free themselves from the first reminder message. Obviously, others settle them only after being called several times.

The reduction of unpaid bills

Even if the company offers a reliable and quality service, it will sometimes face dishonest customers. The collection software is able to identify and categorize them, and to offer personalized automatic reminders. These are presented as reminders to people at risk and encourage them to honor their commitments. They also allow the company to considerably reduce its insolvencies (the problems of unpaid debts are generally linked to insufficient liquidity). Ideal for improving cash flow.

The time saving

Recovery is a relatively long and tedious task. The software automates it and saves time for the company. Thus, employees focus only on specific reminders or attend to other occupations. From now on, no more delays or omissions in the management of receivables.

The effectiveness of tracking follow-up messages

The software ensures effective and optimal recovery monitoring. It automatically sends follow-up messages to customers with outstanding payments. He also schedules interviews and phone calls with them, and analyzes their situations according to the amounts to be paid and the payment dates (data essential to the accounting department).

Until customers settle their debts, the software will remind them on a regular basis. And the company will not assign an employee to this mission.

Savings on the price of receivables management

In the event of non-payment, the consequences on cash flow are significant. How to cure it ? Recovery software is the tool par excellence. It allows the company to manage its recovery itself and thus save tens of thousands of euros (indeed, it will no longer need to contact a specialized company to do this).

Data aggregation

The recovery software bundles different data and makes it easily accessible:

  • the actions: the company records the reminders already made, the methods used for the reminders, the reminder programs, etc.
  • customers: the company saves their information (accounts, potential disputes, outstanding amounts, payment notes, etc.);
  • receivables: the company mentions the nature of the payments, the promises, the amounts, etc.

Improving the image of the company

Thanks to the collection software, the company makes fewer errors in its credit management. It also avoids certain blunders: for example, sending debt recovery messages to non-concerned people. To improve its image.

To guarantee the development of a company’s activities, optimal management of its cash flow is essential. For this, the use of recovery software is the ideal solution. This tool is suitable for both large structures and SMEs, and protects them from possible dramatic situations. No more chasing customer payments.

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Collection software: what are the advantages? – Silicon

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