Your Debtor’s DNA
Business accounts in your accounts receivable portfolio may appear to be the same on paper. Using individuals in the example to the right both Prince Charles and Ozzy Osbourne may look alike on paper. Both male, born in 1948, divorced and remarried with two sons. However, the financial condition of any two businesses can be as opposite as these personalities. At The LaSource Group our analyst’s dig deeper to get a complete picture and understanding of the business credit availability and ownership. That means faster liquidity and higher resolution percentages on each collection.
Most companies work with one or more collection agencies. However, the results can vary tremendously. The sooner a collection agency receives a claim, the more likely they will collect the funds. However, a company would generally not send all AR to the agency too quickly as there is a significant cost associated.
By performing analytics across the portfolio, companies can use configurable algorithms to determine which accounts should be sent to the agency and rather than waiting, these can be sent earlier. Also, choosing to not outsource accounts that are likely to self-cure or cure with little collection treatment can have a substantial impact on minimizing your agency fees. Further, analysis may even help determine which agency to use. The LaSource Group can help you prioritize past due accounts in your portfolio and advise you on a strategy to collect internally to help you reduce collection fees.