Risk Of Ignoring Debt Collection Software
BEST DEBT COLLECTION SOFTWARE TO AUTOMATE
For finance executives who accept that automation and simplification are essential for long-term success and stability, relinquishing manual processes for debt management carries huge appeal. Yet, many continue to rely on inefficient and potentially outdated methods to collect customers who are overdue on payments. For those that are unaware of the progress made in order-to-cash software, they fail to recognize the risks associated with not investing in modern debt collection technology.
Data EntryTo begin, manual data entry is significant, often unforeseen, cost of not utilizing software in the debt management process. Enterprises must allocate resources to extract customer and financial data from disparate systems into an organized spreadsheet in the absence of unified platform. This task is labor intensive, which can be problematic for businesses who lack resources and does little to alleviate high-volume debt collection.
Low Visibility and Disorganized DataAdditionally, outsourcing data entry carries its own cost and permanency considerations. Third-parties may not have access to necessary information, need to be trained periodically, and ultimately may not stay up-to-date on the organizations operational changes. Furthermore, without software, debt managers have limited visibility into their portfolio and lack the ability to connect multiple pieces of information simultaneously. Therefore, it becomes increasingly more challenging to get an accurate presentation of the business? financial standing.
Non-Adherence to Creditor LawsBy neglecting to invest in technology, it becomes nearly impossible to adhere to creditor compliance laws when collecting on past-due payments. As new regulations come into effect, enterprises must permit various channels of communication, provide notifications to debtors, and most critically, secure data. These are mere tedious actions that can veer many managers away from collecting the owed money.
Opportunity Cost of Increased RiskWhat is most concerning about the decision to forgo software for debt collection is the increased risk of non-recovery on payments. By manually attempting to manage delinquencies, debt managers often underperform and take on additional financial and legal exposure. Therefore, the opportunity cost of not employing software lies in the potential losses that could have been prevented.
It is clear that the promotion of automation is essential for any enterprise that expects to maximize the effectiveness and efficiency of its debt collection strategy. Automation yields cost advantages, compliance protection, and the ability to rapidly view and analyze the payments loss cycle. Therefore, finance executives must not dismiss the value of order-to-cash software in light of their finance operations.
