Improving Collections Performance Through Leveraging Analytics | White Paper

Efficient AR (Accounts Receivables) management is an important area of focus for CFOs in the current economic climate. Improving collections performance leads to cash flow increase, reduction in bad debts and an improvement in the organization’s credit rating, which reduces the future cost of borrowing for the company. However, though many companies have invested in technology and personnel resources to boost collections efforts, their intense focus on a relatively small percentage of past due accounts, those with the highest balances, is neither efficient nor effective in achieving these objectives. Organizations should leverage analytics to get a deeper insight into their customers’ payment habits and develop a customized collections strategy to control aging payments.

2 Comments on "Improving Collections Performance Through Leveraging Analytics | White Paper"

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  1. Ted says:

    This is helpful for collections performance and in the packaging and marketing of debt to discounters and secondary agencies as well.

  2. Nikunj says:

    Collections and Risk management go hand in hand. Today most of the companies envisage risk after the sales have been done. That is the basic reason collection transformation goals are not realised. An effective collection system would use Risk an a key parameter in Collection Strategies to segment Accounts into Portfolio’s and at the same time use the same platform in a collaborative manner for sales guys to know the Account Status

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