Accounts Receivable Management Solutions
Have you ever heard, “You can master your strength and outsource your weaknesses”? Being an entrepreneur, you know that efficiency and cash flow are key to the success of any business. Why exhaust yourself with a critical aspect of your business you may not excel at? Managing your accounts receivable is often best outsourced to the experts.
A/R Management is critical to a firm’s growth and survival. Through the AR management process, you determine the most favorable credit policy to each critical customer. One of the key objectives of Accounts Receivable Management is to find out if the benefits from extending credit is greater than the cost of maintaining investment in accounts receivables. You can get the cash flow predictability if you manage your accounts receivable effectively. You can optimize your AR management processes by following six main aspects.
An effective AR management program should include:
- Know your Metrics. Whenever you are taking credit risk on a customer, knowing how much risk your company can take on and measuring that risk becomes critical. All your actions originate from measuring that risk and give you a thoughtful, holistic AR policy.
- AR financing options should be organized and goal oriented. There should be clarity on what the AR would accomplish for the business.
- Effective communication is vital. The timing, tone, and content of your calls, reminder emails, templates and follow-ups greatly impact the response rates you get out of your interactions.
- Tracking AR performance would help you manage the risk involved with credit sales. Regularly tracking your metrics allows you to see the trends in your AR real-time, and catch the sudden changes.
- Quick Action and Persistent efforts are the keys to success. Without damaging customer relationship, take timely actions and persistently follow up in a professional manner.
- Proper AR Management will improve your eligibility for better and cheaper financing option. You would be aware of the funding options available. Having proper AR management in place is like building up your credit profile.
All the above aspects can be taken care of by outsourcing the AR management process. Many of your competitors are already taking the benefit of outsourcing these services so they can focus on sales and client retention.
At Paragon Financial, we offer Accounts Receivable Management Solutions with 23 years of experience. It is about not only working capital, credit protection and collection answers. We provide comprehensive solutions like:
- Evaluation of the creditworthiness of prospects and customers before granting or extending the credit protection.
- You save money on overhead costs by not needing credit, accounts receivable or billing personnel
- Relieve yourself of having computer backups, or the security of data in place related to Accounts Receivable.
- Save your valuable time, which otherwise is consumed in printing and mailing statements to your customers
- Enhance and Improve collection practices and monitoring of receivables
- Allows you to have centralized processing of payments with lockbox services
- Eliminates the need to send employees to the bank to make deposits
As previously stated there are multiple services that we offer under A/R Management Solutions. They Include:
- Receivables Financing: If you work with creditworthy customers, we can advance you up to 90% on your current outstanding invoices. Whether you are a startup or an existing business, we understand that running a business productively without available funds is not viable. Our financing solutions plan provides you with capital swiftly based on the dues outstanding from your customers.
- Credit Protection: You probably took a bad AR hit or two during the great recession. We offer full credit protection against your clients filing bankruptcy or their insolvency. Read here for detailed information about our non-recourse financing.
- Billing Services: Optionally, either you or Paragon can generate and send out your invoices and statements. Along with paperwork, we also make friendly, non-intrusive inbound and outbound emails and calls to achieve collections objective. Allow us to manage any paperwork related to accounts receivable, for you. We are experts at our job, so we take care of smallest of details. You would always have access to a professional and detailed activity on your receivable accounts.
- Lockbox Collection: Through Lockbox collection, billing clients can have customer payments mailed to a special PO Box instead of their business address.
- Payment Processing: We help you in processing your payments by using our technology in Remote Deposit Capture.
- A/R Monitoring & Reporting: You would have assistance monitoring the activity of your customers with regards to the open invoices outstanding. There are detailed reports online 24-hours a day. For example, detailed or summarized aging and delinquency reports within 30, 60 or 90 days.
With our accounts receivable management solution, businesses can improve collection rates to boost cash flow and free up working capital, which in turn will enhance overall productivity and service. Clients DSO (Days Sales Outstanding) typically drop with our services with an increase in your customer’s satisfaction. We offer end-to-end receivables collection and recovery management services that generate additional profits and build greater organizational efficiencies.
We service clients in Small/Medium Business, Communications, Healthcare, Retail, Utilities, Financial Services, Government, Education and Commercial. Any business that extends credit or expects payment in return for providing goods or services qualifies as a possible client. Enjoy the advantage of choosing us for all day to day process related to AR management. You will surely find the cost worth it when you start focusing on innovative ideas to help grow your business.
Focus on your core business by outsourcing Working Capital Financing, AR Management & Credit Protection. Take advantage of our 22 years of experience funding Accounts Receivables, so you do not miss out on bigger and more significant opportunities.
With Receivables Financing Plus from Paragon Financial, you can continue funding your payroll, paying your suppliers, and adding to your inventory, and have the immediate cash to invest in growth-oriented sales and marketing activities.