Debt collection software transforms your monthly 3-day ‘find the spreadsheet, update it so it’s accurate(ish) and then try and contact everyone..nicely’ collections trauma into an effective, instant and reliable mechanism for managing debt recovery.
Debt collection software manages your entire debt collection process. It starts with your database and a list of overdue invoices. It then matches money coming into those invoices and if an invoice remains unpaid for a specified amount of time, the ‘debt collection’ process begins.
And this is all done automatically. (Hurrah!).
What exactly is the debt collection process?
#ShowMeTheMoney. There are 3 key elements of an effective collections process which we discuss in this post. The exact steps in the debt collections process may vary across software packages and preferred business processes, but could look something like this:
- 3 Weeks in advance: Invoice with a payment due date
- 10 Days after due date: Email reminder with a copy of the invoice/statement
- 5 Days later: SMS reminder
- 5 Days later: Final written warning and a reminder to the Collection Agent to give the customer a personal phone call
- 5 Days later: Services are suspended until payment is made
Imagine how much easier your life would be if all of that happened automatically?
Of course, there are other features included too:
- Ageing reports covering 30 - 90+ days, for key staff members: Easy to view and/or automatically send to specified people
- SMS and email templates for various reminders: Great! Designed once and used repeatedly
4 Reasons you should use debt collection software:
- More Effective Prioritisation. Don’t waste time on smaller, low value debtors. Data that’s accurate, searchable and centrally located means you have all the correct data at your fingertips; making prioritisation possible and effective. Simply pull a report (at any stage) based on various criteria such as value of outstanding debt or the age of the debt and maximise the effectiveness of your limited time (even if you have a massive customer database).
- Instant, Accurate Data. With automated debt recovery software, the data in front of you is real-time and accurate. Guaranteed. No double checking required, just reliable information you can count on, and report to management with.
- Scalable and Flexible. Good debt collection software has the ability to adapt to the changes within your business. It is scalable and grows with you, and is flexible enough to adjust with your ever evolving processes.
- Automation of Manual Tasks. The best part about software is its ability to automate manual tasks and processes. Smaller repetitive tasks are taken care of automatically and you are notified as soon as an intervention or approval is required.