The debt recovery process is extremely important for any business. Bad debt can be devastating and have a huge impact on cash flow. Successful business need to harness a focused debt collection strategy, which helps them maximise their resources, reduce costs and save time. Here we outline some tips to maximise debt recovery efficiency:
1. Collections Management
A comprehensive collection system is vital to keeping your company solvent. Advanced debt management systems, which include adaptable workflow generators, automated payment options, and decision engines, result in a more effective and customer-centred collections process. Recovery rates increase and costs are reduced.
2. Efficiently Monitor Unpaid Debt
It’s important for you to know when customers who’ve gone into arrears become solvent. The right debt collection strategy should focus on monitoring your debtor’s accounts, thereby ascertaining their ability to pay. If their financial situation has improved, you should be alerted to collect the unpaid debt.
Prioritization is an important part of any conversation around efficiency. And never is this more true than with debt collection. If you can identify those accounts with the highest payment potential, your collection efforts will improve. Lateral’s advanced decision engine tools gift you with a complete system, which prioritizes on your behalf, boosting your debt recovery efforts.
4. Optimize debt recovery through an omnichannel experience
You will see great efficiency savings by integrating all your channels in what’s called an “omnichannel” approach. Letters, calls and text messages can all be automated, the best communication methods are selected by the software, they meet industry standards, and results are delivered.
5. Utilize AI (Artificial Intelligence)
Machine learning, the underlying process that makes AI systems work, is designed to assess data and predict outcomes. And these are vital tools when attempting to maximize efficiency in the debt recovery process. Worldwide, 30% of all companies will be using AI in at least one of their sales processes by 2020. Artificial intelligence can enable improved, customer-centric collections, leveraging data to provide a bespoke contact and treatment strategy for each debtor.