Critical Data to Help Collect Your Companies Delinquent Receivables
Current Accounts: $1.00
3-months Overdue: $.70
6-months Overdue: $.50
1- year Overdue: $.23
2- years Overdue: $.10
** Survey Results provided by the Commercial Collection Agency Association (CCAA)
Past due receivables can severely impact the trajectory of a business. To fight this uphill and never-ending battle a company must instate a strict policy when dealing with delinquencies. Creating an escalation process from both an internal and external standpoint cannot be overstated. Utilizing collection tools and analyzing weekly aging reports will highlight problem areas in your AR that need to be addressed and resolved. Businesses must draw a line in the sand when dealing with aged balances and be aware that as these debt age they will become harder and harder to collect.
Imagine a future where the credit and collections department can become an overall profit center for your business. With the creation of “Receivable Intelligence” this becomes a reality and contributes to your company’s top line.
At Global Hawk Resources (GHR) we utilize both collections and customer service techniques to uncover trends on sales that went unpaid.
This process consists of a two pronged approach to secure payment on delinquent receivables and retrieve “lost sales” data analytics. GHR can assist in your overall portfolio risk management. Utilizing predictive analytics we can help you focus on the actual “dollars-at-risk” to insure your company is optimizing the receivable management workflow.
We take a collaborative approach to the order-to-cash process and will work alongside your sales and finance operations team(s) to proactively assess risk and identify opportunities within the portfolio. Let Global Hawk Resources unlock your receivables potential. We are looking to foster a long-lasting relationship that assists in the recovery of bad debt and assist with winning back business for your company!
Cybersecurity has been a priority for business leaders for many years. Yet, despite investments in security controls, cyber-attacks keep coming. Each organization’s credit and collection department that implements outside help on collections needs to be aware of the risks and safeguards that must be followed to avoid data breaches and hacks. Your third party collection agency is an extension of your own organizations policies and procedures, which includes security postures and controls.
Here are some great questions to keep in mind when choosing a secure third party collection agency:
Does your third party collection agency conduct security audits?
Does your collection agency transmit credit card payments and other highly sensitive customer financial documentation thru a secured environments? If so, what is the encryption level?
Does your third party have an IMP in place?
What safeguards are in place to protect data processing system outages?
Where is the documentation housed at your third party site? Is it in 1980’s style physical file cabinets that sit at their office open to risk?
What is the patch management for your collection agencies infrastructure?
Are OWASP scans done regularly and can your third party collection agency provide these results? Do the scans track vulnerability and security hot spots?
Here at Global Hawk Resources, we have taken the steps necessary to properly secure all data being housed and transmitted to the outside world.
Dunning letters have always been a standard approach to collect outstanding receivables. Sending a formal written request for payment by mail is a touch point with your customer. But, as the famous line goes, “Past performance does not always dictate future results.”
In the Spring of 2020, during the beginning of the global lockdown, most businesses forced their workforce to WFH. Opening the daily mail became an arduous task in this new environment. All dunning letters are directed to a company’s physical bill to address on an outstanding invoice. Most dunning letters, during this time period, ended up in a giant heap of unread mail collecting dust.
As a global third party collection agency, Global Hawk Resources, also sends out dunning letters. In the past 30 days, we have seen an uptick in communication from dunning letters we sent out 120 to 180 days ago. The regular feedback is, the debtor has reopened their business and is going through unopened mail and stumbled upon our letter(s).
We are also seeing a follow up comment that business is starting to pick up and these debtors want to pay down or off the balance. This is a unique and radically different response to most dunning letters Global Hawk Resources has sent in the past. It is also a narrative to the impact of COVID-19 on cash flow and day to day operations of most businesses. A sign of the times and an anecdote we thought worth sharing.
Contact us for a free Demo today to begin your journey with the GHR team.
In 2016 we started a virtual collection agency. At the time, not having brick and mortar space and working in a virtual environment wasn’t the typical path for establishing a debt recovery firm. Most collection agencies you encounter were created in the late 80’s, 90’s and early 2000’s during the time of fax machines, cubicles, and water coolers. A large percentage of these firms have not evolved and continue to operate in this capacity. When COVID-19 hit, the world was turned upside down. All companies were forced to create some form of remote office space including collection agencies.
Global Hawk Resources did not have to pivot to a new business model when most of our competitors were forced to do so. From collection software, phone systems and internal invoicing systems, most businesses had to adjust to fit the new remote work space. Global Hawk Resources did not face the multiple challenges other agencies faced and continued operating in our business model that relies heavily on cloud based systems, VOIP phone systems and remote field collection agents. Having a trusted outside collection partner that updates systems automatically through the cloud and has real time activity is vital in this new remote business world.
Technology and infrastructure are some of the biggest barriers to connectivity and workforce productivity.
54% of HR leaders indicated that poor technology and/or infrastructure for remote working is the biggest barrier to effective remote working in their organization.
Gone are the days of time card machines. There has been a massive shift to work from home.
88% of organizations have encouraged or required their employees to work from home and 91% of teams in Asia Pacific have implemented ‘work from home’ arrangements since the outbreak.
Contact us for a free Demo today to begin your journey with the GHR team.
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Critical Data to Help Collect Your Companies Delinquent Receivables
