When your collection agency is up and running, the next step in the development is to improve the efficiency of collecting accounts receivables. As you research your options you will discover that there are a number of methods for improving collections that you can use. One of the easiest methods for judging them is to remember the phrase “Make it easy”. Making the job of collections easy for both you and the consumer will help you improve the process of collecting accounts receivables. Here are some suggestions for doing so efficiently.
1. Make payments easy for the consumer.
When consumers fail to make their payments it may not be because they are being belligerent. Sometimes consumers do not pay because making payments is difficult or easy to forget. For example, it is easy to miss a payment if the consumer is required to write a paper check every time. Here are some services you can offer that will make the payment process easy for the consumer.
- Payments via a mobile app. Many people, especially young people, are using mobile apps such as Google Wallet and Apple Pay to make purchases and pay bills. These apps act like a direct transfer from bank to bank; when the app is used, money is transferred directly from Google Wallet (or Apple Pay) directly to your account. The consumer gets immediate bill-payment and you get immediate revenue.
- Multiple payment methods. Providing a large number of payment options to the consumer makes their bill-paying easier. Offering credit card, debit card, Automated Clearing House (ACH) transfers, web portals and other online methods gives the consumer a variety of methods of payment and therefore ease of paying. When these methods are interchangeable and the consumer can make payments at anytime and even from a mobile device, the percentage of timely payments increase.
- Online debt negotiation. Some people find it uncomfortable to talk with a collections agent. This will not be an obstacle when you have a virtual debt negotiator online. The consumer can connect with the debt negotiator and work out a payment plan that is best for you and them. This removes any stigma and gives the consumer feelings of confidence that he/she can create a working plan to pay back the bills.
2. Make collections easy for you:
As long as you are making bill payment easy for the consumer, make it easy for you, too. Here are two suggestions that will lower labor costs while increasing revenue flow.
- Automatic recurring ACH payments. Recurring ACH payments can be set up so that periodic payments can be made automatically to your account through bank transfers. This helps you because it removes the labor component; once the payments are set up, you do not need to call the consumer again.
- Integrated billing and payment. Set up a series of emails that will present bills to the consumer and also give them the ability to pay those bills through the same email. Links from the email to your online payment portal will give the consumer an easy way to pay their bills the moment they receive the email. It will save you a lot of time because, again, your agents need not get involved.
So when you are collecting accounts receivables, remember that the watchword is “make it easy”. By making payments easy for both the consumer and you, you ensure a strong revenue flow with a significant lowering of costs.
BillingTree has the latest technology and the best programs in order to help their clients grow their businesses easily, quickly and within full compliance. To learn more about how BillingTree can help you, contact BillingTree or call us at 877-424-5587.