When companies create their business plan they lay out how they intend to create, manufacturer, market, and sell their products and services. They go into great detail how they will get this accomplished and how they will match up and I’ll do the competition in their respective markets.
Many companies move forward with this detail business plan, gain financing, hire employees, and enthusiastically go into business. As they begin to build traction and a customer base, they find that even though the business plan is being followed to the letter, and the business is operating as the plan describes, the company is not meeting its financial projections.
The reason for this is because one very important aspect of running a business that new business owners often overlooked is the complexities of collecting money from clients, in a manner that allows the business owner to operate effectively. Collecting Revenue and a timely and efficient manner is a skill that most businesses don’t have and cannot master. Yet it is of vital importance that it is done exceptionally well, because without it being handled well, the company will find itself constantly with a cash shortage.
The best approach to take is to work closely with a company like receivables Performance Management who can craft a receivables management strategy that ensures the company will collect its money from customers in a timely and efficient way. Receivables Performance Management reviews each client’s revenue collection and management issues and then designs a specific plan to collect the outstanding revenue. They also design a strategy so that the company does not find itself constantly in a cash shortfall because of tardy payments by customers.
Many companies in the bankcard, financial, telecommunications, utilities, retail, healthcare, commercial, state & local government, small balance accounts and national legal services – (ACA Certified MAP attorneys) industries Utilize this services and receive substantial benefits.
Receivables are complicated area of any business. It represents Revenue that is owed to end on the books of the company, yet not currently collected. Companies will often have a separate receivables Department or have a department within the finance department that deals specifically with receivables. They will also have dedicated employees 1 dust and the nature of the business and its delicate elements, whereby they must be pushy because the company needs the capital, but often they cannot afford to lose the customer or client or get a bad reputation in the marketplace.
This is where Resources Performance Management It’s such a valuable resource for businesses. They provide the following critical services that in totality are aimed at helping the company clear its backlog of receivables efficiently.
- Telemarketing Services
- Customized Dunning Notice Services
- Outsourcing and Pre-Collection Services
- Early Age Reactivation Services
- Late Stage / Post Statute Services
- Small Balance Portfolio Services
- Inbound and Outbound Services
With the Strategic plan in place that focuses these valuable services, resources Performance Management becomes an effective tool for collecting and managing receivables.