1st & 3rd Party Collections
How To Increase Cash Flow by Reducing Days Sales Outstanding (DSO) while
Raising Accounts Receivables Aging Percentage
As the old saying goes – Cash is King, or at least it should be for any business, despite the size or reason for being in business.
Positive cash flow keeps your business alive and thriving. Without it, we have nothing more than hobby. The #1 ultimate reason we have a business, is to make money. It’s like oxygen – it’s hard to survive without it.
A lack of positive cash flow in your business will essentially make it impossible for your business to survive – for any length of time. As a matter of fact, poor cash flow management can destroy any business, in a very short period of time. So every business should have laser-focus on maintaining and retaining positive cash flow.
Speedy Debt Collections That Boost Your Cash Flow
You might be asking, what is proper cash flow management? It is, cash collection at the quickest possible rate, as well as gaining time and flexibility for payments that you have going out. One of the hardest parts of this management process is debt collection, and collecting the debt as quickly as possible. Your business should have a clear and strategic strategy, to minimize any and all Days of Sales Outstanding (DSO.)
It is extremely difficult to compete in today’s economy, without offering your customers credit, or at a minimum, a grace period to make good on outstanding invoices. Unfortunately, a lot of customers who buy on credit – treat credit terms like they were everlasting interest-free loans.
They intend to drag out payment for as long as they can. As a result, your business is likely to end up with an abundance of over-due invoices in accounts receivables, which ties up your cash flow and leaves you holding and empty account, when it comes to paying your own bills.
The primary focus of any business should be positive cash flow management, and DSO has an enormous impact on cash flow. The repercussions of prolonged DSO, means that your money is tied up and doesn’t allow you to keep up with your own expenses, which will limit the amount of work, resources and capabilities that you planned to support, but now can’t.
Reducing DSO even a little, can go a long way toward improving the health of your business.
Have you considered outsourcing your Account Receivables portfolio to a professional 1st and/or 3rd party collection firm? A little improvement in DSO can go a long way in perking up your company’s cash flow and overall health, and a healthy company is in a position to meet the needs of its customers and stakeholders, making everyone happy and keeping your business alive and thriving.
So What Is 1st and 3rd Party Collection Anyway?
All too often, business owners face the challenges of dealing with slow-paying customers—especially in today’s volatile economy.
Taking the correct action towards outstanding debt, is vitally important to assure your cash flow is not effected by late-paying customers; who fail to make good on their invoices that were agreed to “in good faith” upon acceptance of goods and services from another business.
In many cases, painstaking collection efforts are required, in order to succeed at receiving late-paying customers – to act on their accounts. When it comes to collection efforts, a business owner has 2 options – handle their collections in-house (1st party) or pay a collection agency (3rd party) to try and collect outstanding debt.
Which Works Best For Your Business?
Secure Asset Management has over 37 years of combined experience, of tackling collection responsibilities to assure businesses don’t get caught high-and-dry, from unsuspecting debt issues and poor account management activities.
Our entire team at Secure Asset Management, has been thoroughly trained and educated with automated processing, for enhanced effectiveness and productivity; while utilizing technology advancements, to facilitate improved collaboration and driven workflow, and to aid in the resolution of outstanding claims.
Most importantly we are here to help your business Increase Cash Flow by reducing Days of Sales Outstanding (DSO) and dramatically increasing accounts receivables aging percentage.
Secure Asset Management has a seamless collection process in place, and we are ready to help you manage and maintain your accounts receivables requirements and effectiveness. We deliver powerful due-diligence from our full-service call center with:
• Financial Analysis
• Negotiation
• Professional Commercial Collection Techniques
•Professional Commercial Collection Techniques
• Complete “Life Cycle” Management of your Accounts Receivables
The entire team of Secure Asset Management is committed to deliver fast and effective recovery of all your accounts receivables, to keep your business thriving. Let’s discuss how we can work “together” to help your business grow the healthy and less stressful way.
