Debt collection : automate your process to reduce your expenses
Debt collections remain one of the capital issues for companies. They represent on average 40%1 of the total assets of a company. However, despite the challenges, debt collection management is often a source of stress and time wasted in still largely automated formalities.
Optimize your expenses thanks to the automation of receivables
Le 15 January 2021
All sectors of activity can face the difficulties of setting up an effective management of debt collection, however, the sectors of housing, insurance, leasing, energy and Telecom are particularly sensitive. to this problem.
This is why, aware of these difficulties, CentralPay has developed a payment solution dedicated to the collection of invoices allowing to unify and automate the payment process, from the issuance of the invoice to its collection.
Recovery and the housing sector
In the housing industry and mainly as lessors, monitoring rent collections and various charges requires a great deal of time and resources (human, material, financial). Multiple stages follow one another : referencing of due charges, monitoring of payments, management of reminders and customer communication, collection and financial reconciliation…
To better manage “bad payers” in all their forms, the condominium associations, owners and lessors have set up often manual and tedious collection processes, thus complicating their organization: writing and sending of paper reminders, monitoring of these. reminders, checking the status of payments…
In addition, the means and methods of payment are generally limited (limitation of the means of payment accepted, limitation in the methods of payment (laborious or non-existent staggering), lack of automation in the event of failure, adding to the difficulty of the recovery process. Companies offering more flexibility and automation significantly shorten their payment terms and detect bad payers more quickly.
The challenges of the recovery process for specialized companies, insurance companies and companies in the B2C commercial sector
For companies issuing a large number of invoices, the problem is essentially the same: reducing processing costs and the human resources allocated to payment of invoices. Any business that generates invoices will one day face the question of how to optimize the management of its payments.
A company with a high DSO (Days Sales Outstanding) will see its cash flow strongly impacted. It is therefore essential to enable them to reduce the average payment period for customers as much as possible.
However, customer relationship management related to debt collection is expensive and tedious. Still few companies have really switched to digital payment and most of the stages of the debt collection process are still handled manually:
- Customer relationship management related to the payment of invoices
- Management of statuses and payment monitoring linked to the collection of invoices
- Management of failures and alternative recovery scenarios
- Reconciliation of banking transactions in the ERP or the quote tool, invoicing, cash management
This complicates the management of payments, especially since the main accepted payment methods are checks and transfers, which are complicated to process and pose certain difficulties in bank reconciliations (unreferenced incoming transfer). Credit card payments are rarely offered as more and more companies are in favor of using them for low or medium volume payments.
In addition, the diversification of sales channels (online from a form, checks received by post, payments by remote transfers), add a difficulty to the bank reconciliation stage.
The CentralPay solutions
The vocation of CentralPay is to provide a complete payment system that allows you to automate the customer relationship related to bill payment, to limit the constraints due to collection, and to facilitate the payment of your customers. Digitizing invoice processing reduces costs by 25 to 50% compared to manual processing. Our Push & Pay solution digitizes your claims without dehumanizing them, and allows you to focus your time and income on growing your business.
Push & Pay allows you in particular :
- Associate payment links with your invoices, and send them by Email and SMS : you digitize your payment requests and send them to your customers by email and SMS with an optimized deliverability rate.
- Send bulk payment requests using an import file : you send many payment requests easily by importing the spreadsheet of your invoices to pay.
- Give your customers the possibility to pay as they wish : by card, transfer, direct debit, in several installments or with several cards.
- Optimize and automate your customer communications related to payment : you edit email and sms templates in advance and then program the sending and reminder scenarios.
CentralPay facilitates your accounting reconciliation, each payment request includes a unique reference that you define and all your customer payments are sent back in a single interface, regardless of the payment medium.
Payment requests can be sent from our online portal that we make available to you but can also be integrated directly into your ERP or management tool. This integration allows you to further push the principles of automating the management of your payments. CentralPay directly informs your ERP of the receipted payment of an invoice. Whatever your use model, you benefit from comprehensive accounting exports and monthly financial reports. All your payments are now managed in real time.
Do you want to know more about the CentralPay expertise? Contact our teams.