Our consultants are committed to three principles that together maximize positive cash flow from the recovery and resolution of delinquent accounts.
Principle 1 - Use a Third Party
Over 40 years of experience in collections has proven that the impact of third party intervention is critical in motivating debtors to pay. Sending statements time and time again or repeatedly calling customer without success wastes time, is extremely frustrating, and ultimately does not get you paid. Think about it, what would YOU do if you received a communication from a collection agency. Would you treat it differently than the pile of bills on your desk? Most likely you would, and the same principle applies to your debtors.
Principle 2 - Don't Let Accounts Receivable Age
Government statistics show that the longer receivables age, the harder they are to collect. In other words, unlike fine wine, receivables depreciate with age. In fact, the government estimates that after 60 days, a receivable loses .5% of its value every single day.So if your customers/patients are ignoring your attempts to collect, why send statement after statement, phone call after phone call with no result? Don't throw money away by allowing your receivables to age.
Principle 3 - Treat All Debts Equally
It is well known that many percentage-based collection agencies pay more attention to the high-balance debts than the smaller ones. It's purely economics. If a collection agency charges 30% "commission" and you submit a $100 debt to them, they will make only $30 if they collect. Ask yourself, how much work would you do to collect a debt where you would only make $30 if successful? Percentage-based collection agencies usually work the higher-balance accounts and virtually ignore the lower balances. This common practice is called "skimming". The collection agency services offered by BottomLine Consulting do NOT take percentages. They work every account equally for a flat fee. So if your overdue balance is $100 or $10,000 your fee is the same, and your account will be worked in exactly the same way as the high-balance ones.
Click here to see how these principles can help you maximize and accelerate cash flow, trim receivables, and allow your business to grow without adding administrative staff.