Many organizations are changing their approach to bad debt recovery and accelerating collection efforts through early intervention practices. Here I talk about treatment strategies and timelines, customer experience and the value prop for early intervention.
The accounts receivable landscape is ever changing. Changes have been more dramatic in recent years led largely by new Consumer Financial Protection Bureau (CFPB) and Telephone Consumer Protection Act (TCPA) regulations and guidelines. Even with these changes, the goals of reducing delinquency and maximizing recovery have never been more important. Critical metrics, such as charge-off percentages and days sales outstanding (DSO), can have huge impacts on the bottom line.
Many organizations are changing their approach to bad debt recovery. Forward-thinking accounts receivable (AR) teams are doing away with traditional models (both internal and external) with the end goal of maximizing performance on bad debt. AR managers are working in concert with collection partners on non-traditional initiatives geared to combat current market challenges. Companies are taking a hard look at collection timelines and evaluating the decision to accelerate collection efforts utilizing early intervention practices.
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