REVENUE RECOVERYOUTSOURCED A/RWHY HIRE AN AGENCY?SELECTING AN AGENCYTHE RIGHT TIMING

Selecting A Collection Agency

How To Select A Collections Partner

For many, the immediate response would be to select a collection agency based on the lowest fee.  Clearly price is an important factor in any business decision, however it should be weighed together with many other aspects of the partnership.  In the accounts receivable field, you should focus on a measure known as “net back”.  This means the amount of money that is returned to your company from accounts that are placed for collection, after the collection agency fees have been paid.  This is the true cash flow.  Take a look at the chart to see a comparison of two agencies.

It is quite evident that Agency B returned revenue at a much higher rate per placement than Agency A, even though the collection fees were 5x higher.  This example is meant to highlight the importance of selecting an agency based on their expertise, their commitment of placing experienced personnel on your account, and their utilization of established, diplomatic customer service skills.

At A.R. Systems, we have a commitment to deliver excellence at a reasonable cost. We partner with your business to provide customized, innovative approaches to increase your revenue recovery and thus increase your cash flow.