Thursday, September 24, 2009

Accounts Receivable Management

Third-Party Accounts Receivable Management

Managing accounts receivable can be tricky when debtors do not pay promptly and are situated all over the country or even abroad. Third-party accounts receivable management can be useful for contacting debtors and setting collection processes in motion, and an experienced debt management agency can help you to get debtors to settle outstanding accounts without having to resort to an expensive court case. Simple face-to-face contact by a collection agent can be an effective as well as cost-effective debt collection solution.

Accounts Receivable Management Fee Structures

Some companies offering accounts receivable management will structure their fee so that you pay a set retainer every month – this is not ideal for you, as the amount of successful collections in a month will naturally vary. A company which charges a commission of a fixed percentage per successful collection will offer you a solution whereby you only pay when money is recovered, and this is a far more economical solution.