Many organizations who already have a solid business model in place, tend to focus all their energy on how to continue growing in a sustainable way whilst avoiding any issues or distractions along the way.
It is unfortunately a crude reality that late payments affect business growth, and should it get very bad, even put companies at financial risk. Organizations tend to be built with a huge prominence on what will make them successful and often do not have the means or perhaps the experience to develop a strong receivables management unit, as in most cases, it is not a core part of the business.
Companies therefore resort to having just the basics in place. Whilst the business is still small they are able to handle a few payment delays from a small range of clients, but as they grow, they find themselves overrun, the fragile process they have in place collapses, additional resources are needed, liquidity is affected and the attention shifts from the goal of taking the business to the next level, to putting significant effort and money into collecting back their hard earned money.
How to avoid such a situation?
You could carry on sending out these old fashioned collection letters that have been around since the 1980’s or you could even invest large amounts of money into hiring an IT team to develop your own modern day collections software. Or you could just outsource this service to the experts that already have a modern and digital collections strategy in place.
There are several players on the market that offer a comprehensive, easy to use service that can assist you with this essential part of your business. These modern collections services usually have a developed platform available where the end customer can self-service by making payments, requesting to split payments, and accessing all relevant information about their outstanding invoice. They also have a powerful digital communication strategy with AI that uses behavior economics to create the best user experience and ensure a quick and easy receivables management process.
So, Who are these experts?
A company such as Pactum possesses all the previously mentioned features and does so also in whitelabel solutions so that the end customer still feels the attachment and loyalty to your business. We are at the forefront of this industry having at our disposal modern software powered by a strong AI tool that enables us to adapt our strategy to consumers preferences and thus improving their Cx.
The benefits of outsourcing the receivable management part of your business will translate into an improved customer experience, a healthier cash flow, leaner structure and enable you to focus your efforts and resources into growing your business further.