Friday, October 30, 2009

Accounts Receivable Management

Third Party Accounts Receivable Management

Many businesses battle with debtors who do not pay their accounts on time and a useful solution for handling such difficulties is to use a third party debt management agency which specializes in accounts receivable management. By entrusting this aspect of business to professionals who specialize in this field, businesses can experience greater success in their debt collection endeavors than if they were to attempt to handle debt management using internal resources.

Cost-Effective Accounts Receivable Management

While some debt collection agencies rip clients off and charge large retainers even when there are not active collection processes in progress, it is possible to find an agency offering accounts receivable management based on a commission system, whereby a commission of a fixed percentage is charged on all collections. This works out as cost-effective, as the occasional unsuccessful collection attempt will not cost the agency’s client anything and will thus not worsen the financial situation. A collection agency offering litigation assistance can also be of use when debtors do not settle payment and legal action is required.