Receivables management Solutions
Accounts receivables are typically one of a company's largest and most visible assets on the balance sheet. Managing such a large asset is an activity of paramount importance, as poor receivables management may hinder cash flow and cause the company to incur bad debt expense. Companies should consider following a set of best practices when managing their receivables.
Even if you have a profitable business yet you have a lot of outstanding debt, most likely in a year or two, you will not have enough cash to fund you operation. That is why you need a professional company to handle your credit and collections. Receivables Management is our specialty. It is not only about collecting a debt, it is about having a system in place to make sure that your receivables don't turn into a debt to be collected.
Collections masters offers many services other than debt recovery, we offer factoring and purchase order financing.
A professional collection service such as collections masters can assist you in collecting accounts that remain delinquent. we have a vast knowledge of collection techniques, technology and compliance issues. Using a our service will save time and likely yield better results than you can achieve on your own.
When accounts reach 90 to 120 days past due, it's time to consider placing them with a collection agency. If you wait over a year it is unlikely you will get paid, but possible. If you are letting something sit on your books and grow older without actively pursuing it, it is worth it to give it to a collection agency. It's not going to get collected if you keep it, and the percentage you will pay the agency will be well worth it.
When you sell “on account,” you create accounts receivable—i.e. revenue earned, but not yet collected in cash. Most business owners understand the difference between cash and accounts receivable, but there are subtle differences in managing the two that many businesses slip up on. . Profitability and cash flow are two very different things. There are many profitable companies are strangled by negative cash flow.
As an account ages, the chances of collecting decreases dramatically. It’s expensive to carry accounts that you will not be able to collect using your resources. It sometimes becomes a better use of your company’s time and resources to concentrate on other aspects of your business.
Trade credit insurance, business credit insurance, or credit insurance is an insurance policy and a risk management product offered by private insurance companies to business entities wishing to protect their accounts receivable from loss due to bad debt such as late payments or bankruptcy.
Factoring is a business process in which a business gets paid on its accounts receivable, or invoices, by a third party financial company known as a “factor.” This is done so that the business can receive cash more immediately. The factor will extend the payment terms to the customer. Factoring Helps reduce the cash flow cycle.
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