Having a simple system for debt recovery is vital for every organisation. The old days of paper bills and manual collections are over. Modern tools offer a way for companies to track payments, follow up on unpaid bills, send reminders, handle disputes, and ensure transparency at all times. For customers, benefits include easier ways to pay and reduce or manage debt before it becomes a major problem.
Used as part of an integrated digital communications platform, automated communication solutions for debt recovery offer many benefits to your business.
The longer accounts remain unpaid, the harder it becomes to recover the debt from the customer. This can damage business relationships. In the case of disputes, automated communication tools can simplify the process, assisting collection agencies and reducing resources and time spent on resolution. Generic bill reminders and manual invoices and reminders are often ignored and it becomes harder for collectors and companies to track communication. Being unable to collect debt successfully can make it harder to pay employee salaries and manage other resource costs. Not managing debt collection proactively, may even cause some businesses to be at risk of bankruptcy or closure.
With the right tools available, you can streamline your recovery, dispute, and overall management. Keep reading to find out how automated digital communication solutions for debt recovery can help you streamline your business and save you time and money.
Streamlining Your Debt Recovery Processes With Automated Communications Solutions
Without automation, the process will be far harder. The biggest advantages offered by a digital communications solution for debt recovery are as follows:
Payments can be done faster
Outdated methods of billing can quickly lead to payment delays. The easier you make it for customers to pay, the more likely they are to pay on time. Companies that have not yet embraced automated systems will often struggle to collect unpaid invoices. This results in lost income and in some cases, it can also have an effect on customer demand – especially in the e-commerce space when product orders have been placed without purchase. Automated collection tools allow you to streamline payments, making it easier for customers to pay in their preferred methods. You will also be able to ensure a higher level of transparency, with a clear track record of all bills sent and paid.
Disputes can be managed more effectively and quickly
Automated collection tools help you manage debt disputes effectively. As these tools provide a high level of transparency at all stages of invoicing and payment, it is easier to have a clear trail of transactions. This can reduce the risk of customers claiming to have paid payments when they have not done so. A big challenge for businesses and collections agencies is that disputes are often integrated into the collection process in a way that can cause confusion. These two are closely related. Automating both of these processes ensures a much better chance of proper integration with minimal confusion for finance departments. Disputes need to be identified and treated in a way that adheres to strict policies. The aim of both collection and dispute management is to ensure that bills are paid. Sending bills in advance of payment due dates can greatly help to reduce the chance of payment disputes that stand in the way of prompt payments. Taking a preventative recovery approach allows disputes to be quickly detected so that they can be resolved as soon as possible. This will speed up collection and payments significantly.
Billing processes can be improved for greater efficiency
A big benefit of automated debt collection tools is that they allow finance teams to focus on the myriad other tasks they have to do each day without wasting time. The time it can take for employees to manually follow up and manage overdue bills can quickly take up a lot of resources. Rather than trying to keep track of payments and wasting resources keeping on track of late payments, disputes, and other issues, these functions can be managed automatically. This increases overall productivity and efficiency within finance departments. It also simplifies processes for debt collectors, whether in-house or outsourced. There is less room for human error, too, which adds even more advantage to overworked teams trying to manage multiple tasks each day.
Improve customer service
Automated collection tools can greatly improve customer service and satisfaction as well. For customers, having fast, simple ways to pay will take away a lot of time and effort spent on managing bills. Features such as payment reminders and easy-pay options all help improve customer relationships. Making it harder for customers to pay quickly leads to frustration. Manual bill management can also be extremely frustrating, especially if bills are not correct or updated when payments have been made. Issues such as duplicate bills, incorrect billing information, incorrect bill amounts, and other problems further jeopardise your reputation. The easier you make it for customers to pay and manage their bills, the better your relationships will be and the more likely you are to get paid.
Only send reminders for bills that are past their due date
Another way that automated debt collection tools can prevent poor customer relationships is how you manage bill reminders. Outdated, non-integrated systems may end up sending reminders right after the initial bill has been sent. Others may not send reminders at all. Timing is everything when it comes to payment reminders. Sending reminders to customers who have paid their bills already can be problematic, causing issues with customers as well as finance departments. Bills may not be labeled as paid and customers may end up having trouble trying to dispute such issues. This also wastes a great deal of time. Manually trying to keep track of reminders is no small feat. An automated tool takes the stress out of the process, with set triggers that sent reminders at the right time based on actions such as non-payments.
Grapevine Interactive offers a comprehensive digital communications solution that handles all areas of customer communication. This includes debt recovery and management, marketing automation, IT functions, and various other areas of communication.
Get in touch with us today to speak to a consultant and we will show you how our automated debt recovery tools help your business.