There are a ton of different solutions for credit and collections management on the market. It seems like a new one is popping up every day. There are some that get the basics done, while others have a ton more value and functionality. It really depends on what your business needs that determines which credit and collections software solution is right for you.
Those systems that have more functionality and are more robust have some features that you would never expect to find in credit and collections software, but end up proving to be very vital. These features help to save time and make your department more efficient, which allows you to spend more time with the difficult accounts who need an extra push to make payment.
PHONE CALL MANAGEMENT
Making phone calls is often one of the most important tasks you can do in collections. It’s much harder for someone to ignore and make up excuses when they are talking to you on the phone, as opposed to email. Credit and collections software sometimes offer a phone call management feature which allows you to record and transcribe conversations with customers, giving you complete transparency the next time a customer claims they never promised to have payment in by a certain date. Additionally, phone call management features allow customers to call in to a self-serve menu for information on things like past due balance and open invoices, eliminating having to field these calls yourself.
Credit information is vital for every business. Extend credit to the wrong customer and you could face huge losses and expensive legal battles. Extend too little credit and you could be missing opportunities with your best customers to earn more of their business. Credit and collections software often has credit reporting capabilities from within their solution to view customer’s and potential customer’s credit rating and alert you when their score begins to dip. It also offers the ability to report back on customers with poor payment history.
ONLINE BILL PAY
It’s nice to automate your emails and alert to when an invoice goes past due, but credit and collections software can also offer the customer to complete the invoice to cash cycle by allowing them to pay online. Online bill pay allows customers to self-serve their payment, eliminating the need to take and store credit card information or wait for a paper check to come in the mail. Most of the time, credit and collections software has PCI compliant online bill pay portals.
INVOICE DISPUTE MANAGEMENT
Invoice disputes are a huge hurdle to getting paid on time. The longer an invoice sits in dispute, the less chance you will have on collecting the full amount. Knowing when an invoice is in dispute and dealing with it immediately is one of the best lines of defense to ensure you collect on the entire invoice. Credit and collections software can automatically escalate disputes to a credit manager when necessary. Each invoice can be tagged with a reason code for tracking purposes. Filtering by reason code can help to decipher which issues come up most often and avoid them in the future.