Credit, Collection, Chargeback and Cash Application Management

In previous editions of AR Gone Wrong, I introduced and coined the term “Collection Loops.” A Collection Loop is what happens when a company outsources a portion of their “straightforward and simple” collections to another firm. The company provides limited information that basically includes the amount of money to collect, when it was due, who to collect it from and systems that are designed to assure that the debtors are Dunned efficiently. Part of this efficient collection process is to assure that no one falls through the cracks. They receive a call, letter or email every couple of days until the pay.

In the two previous real-life examples of AR Management gone badly, the Collection Loops were easily broken via one fax to the loop creator’s CEO.

Press Release
Cforia Software Completes All Time Record Quarter.
Westlake Village, CA, USA – October 1, 2009

Cforia Software, the leading provider of Credit, Collections, Chargeback and Cash Application Accounts Receivable
Automation Software, today announced an all-time record revenue for the quarter ending September 30.

The following large corporate customers signed during the quarter:

Henry Schein, Inc.

Maintenance Supply Headquarters

Ball Corporation

Hamilton Beach

Olympus [...]

In these challenging economic times Accounts Receivable departments assume the delicate role of identifying struggling customers, policing exposure and making quick and often difficult order release decisions.

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Better Credit management can:

Improve Credit Hold and Order Release
Automate Credit Scoring and Reporting
Multiply productivity of your AR staff
Increase cash flow and reduce [...]

This posting describes a broken credit card company AR Automation process that is a great way to chase away customers. Learn how a few simple process changes including a promise-to-pay transaction, problem collaboration and real-time data access can fix everything.