What To Look For When Choosing An Accounts Receivable Management Company To Service Your Business
Posted on: 16 January 2019
Are you on the hunt to hire an accounts receivable management company to service your business? Here are a few things to look for when deciding which service provider to ultimately work with:
Straightforward Policies and Procedures
One important feature to look for when choosing an accounts receivable management company to hire to service your own business is straightforward policy and procedure guidelines. Without them, you won't know what to expect if a customer's payment is late or missed altogether, and you won't know when or how you can step in to make changes to your own policies and procedures while ensuring that they still comply with those of your accounts receivable team.
So make sure that the service provider you choose to hire has outlined all of their policies and procedures in writing so that you can go through them with your lawyer and ensure that you understand every aspect of their rules and regulations. This will help ensure that you don't end up having to deal with any billing nightmares or broken customer contracts as time goes on.
In-Depth Client Worthiness Evaluations
It's not enough for your accounts receivable team to manage the accounts that your business has already secured. The company you hire should also be able and willing to help you secure new accounts receivable contracts with customers by providing you with in-depth worthiness evaluations every time a customer applies for a contract. Your service provider should be able to:
Run credit reports
Find third-party aging reports
Check personal and business references
Determine the size of your debt burden, if any
If the customers you are extending credit to are business owners, your accounts receivable management team should also be able to do some investigative work and find out how well they manage the other credit accounts they maintain.
Effective Customer Support
There will be times when your accounts receivable customers will have questions or concerns about their contracts, and you might not be the best person to handle those customer interactions. Your accounts receivable team will know each of your customer's accounts well and should be able to answer any questions that arise as time goes on or at least know how to find out the answers to those questions.
Whether the accounts receivable team you decide to hire for your business is willing to take customer service calls directly or offer backup phone and email support to your in-house team, it's a good idea to make sure that they're as committed to servicing your customers as they are to servicing your business.Share