11.21.2020 | Posted by Erik
6 Top Reasons for Outsourcing Receivables
Should you consider outsourcing receivables? There are many reasons why an increasing number of companies decide to outsource their A/R. Let’s take a look.
Why Do Companies Outsource Their A/R?
While sales and accounting are core parts of most companies, “chasing down invoices” isn’t often a core value. Many organizations simply don’t have the staff, resources, or desire to focus on collection.
As a result, past due invoices pile up, and it becomes more challenging to keep the business running. Some of the main reasons a company might decide on outsourcing receivables include:
- No dedicated in-house staff for collections
- In-house A/R staff is unreliable, and keeping the position(s) filled has been tough and costly
- Increasing number of past-due invoices
- Lenders are getting involved
- Staff is unmotivated to do collection work
- No time for collection because of business development efforts
The more invoices go past due, the harder your cash flow will be hit – and eventually, that can pose some big problems. Outsourcing receivables is one option that presents many benefits.
What Are the Benefits of Outsourcing Receivables?
The most important part of outsourcing receivables lies in hiring the right company, but more on that in a bit. Once you’ve hired a competent A/R company, the benefits are clear.
- You’ll see improved cash flow because more invoices are paid on time. A/R companies’ sole job is getting their clients’ invoices paid. Instead of worrying about collections, you can focus on growing your business.
- Your customer service and processes will be enhanced and more consistent by outsourcing receivables. If you don’t have personnel dedicated to A/R, switching to an outsourced A/R partner can make a huge difference. Standardized processes result in a more reliable and predictable experience for your customers.
- Aging is clean, and you don’t have to worry about answering to your lender or management. Past due invoices become a thing of the past and you’re the hero for finding the solution.
- You don’t have to worry about hiring, firing, or training A/R staff ever again.
How to Get Started with Outsourcing Receivables
If you’re thinking about outsourcing your A/R, it’s important to go with a company you can trust. An effective outsourcing receivables partner picks up the phone and treats your customers well. That’s what we do best.
Axim is not a collection agency. Our business model revolves around customer service and long-term relationships, which is why we operate on a flat monthly rate with no contingency fees. We value the customer experience and can work with you to accomplish your goals.