Debt Collection Softwares
Debt collection softwares are used to organize the daily job of collectors and to minimize the time spent on administrative and unproductive tasks so that they can dedicate working time to high-value tasks:
- accelerate cash receipts.
- negotiate with key customers in collaboration with business managers.
- identify and resolve quickly disputes that may prevent the payment.
- facilitate communication between departments with up to date data.
- involve employees of the company (sales manager, customers care ...) in debt collection and dispute resolution,
- measure performance (DSO, % of overdue, dispute resolution time ... etc.) on several perimeters (all AR or per customer or group of customers) and in real time.
|Productivity and efficiency gains can be high when the tool is used by a coherent organization.
The use of web technologies allows among others to improve a communication sometimes not obvious between financial department and business department and with other providers (credit insurers, financial information providers ... etc.).Several credit management softwares are available in the market. These software use for most of them web technologies with a business based on Saas model (software as a service). However, it may be possible to buy a licence with some of them.
The application and database are hosted on the provider's server. The tool is supplied with data from the company's information systems through secured interfaces (SSL...).
Users access the tool through a web browser (Internet explorer, Firefox, Chrome...etc.).
This SaaS model (Software as a Service) avoids the disadvantages of software "in board" (installations on each user station, payment of a license) and makes easier exchanges with other providers (credit insurance, financial information companies ... etc.). The software upgrades are no constraints for the user.
Key features of Credit Management softwaresThese tools offer attractive features to significantly improve the efficiency of credit Management and debt collection with, as example (not exhaustive):
Historically reserved for large companies because of their cost and relative heaviness of implementation, which has no common measure, however, with the implementation of ERP, the trend clearly is to lower prices and a simplified implementation. This trend makes accessible this type of software for all sizes of businesses.
New players have created solutions using flexible technologies that enable very fast set up and require less of human and financial resources.
Criteria for choosing the software: performance and relevance
Pitfalls to avoid:
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