The convenience of debtor management software

The primary goal of a company is to achieve maximum profit. Products are purchased competitively and sold with maximum profit. This cannot be achieved if customers do not pay their invoices or do not pay them on time.

Poor liquidity can jeopardise a company’s survival. A large part of the bankruptcies are caused by poor debtor management. This then makes good debtor management a very important part of an organisation.

At Payt we believe that in percentage terms, deliberate defaulters are minimal. Good debtor management therefore consists of finding out the reason for the non-payment.

Has the product or service not been delivered? Does the customer have a complaint? Or is there an error on the invoice?

Communication with your customer is very important to achieve this. Good debtor management improves the payment behavior of your debtors and improves customer relationships. This will result in a shortening of the payment term and a reduction in the amortisation of unpaid invoices. Ultimately, this makes a direct contribution to the profit of your company!

Outsourcing debtor management often means outsourcing the entire process. For most parts of it, that is also quite sensible. Professionals can often do it better and faster. But there is one part of debtor management that is difficult to outsource. And that is the substantive disputes or questions from your customers. It will be difficult for you to outsource these properly and there is a considerable risk in this. You can lose your customers faster because of this. Customers do not appreciate having to explain to a third party that your product was not delivered as agreed or that there was a mistake on your invoice. Outsourcing debtor management offers many advantages and some disadvantages. We will briefly discuss these.

Advantages of outsourcing debtor management

• Specialist knowledge. Professionals are often better able to do the job because they are trained for it. You can therefore be confident that your accounts receivable management will be handled properly.
• Time-saving. By outsourcing your debtor management, you can spend your valuable time on business or other important matters within your company. This allows you to do your work more effectively and efficiently.
• Saving money. When you hire someone to do your credit management for you, you always have to deal with fixed staff costs. This is not the case when you outsource.
• Cash flow boost. By automating where possible and giving personal attention where necessary, the payment behaviour of your customers improves significantly. By consistently bringing outstanding invoices to your customers’ attention and offering multiple payment methods, your customers can pay their invoices quickly and easily. As a result, you will be paid much faster.

Disadvantages of outsourcing debtor management

• Less influence on the personal approach. By outsourcing accounts receivable management to a third party, you have much less or even no influence on the way they deal with your customers. When your customer has a question or remark about the invoice or your product, the third party will handle it. This is not something your customer will appreciate. You want to have control over this, don’t you?

With Payt debtor management software, you do not have to worry about this. We automate where possible and provide a personal approach where necessary, with you in full control of the process. The software automatically ensures that your customers are reminded of outstanding invoices in a structural manner. This saves you a lot of time. Does your customer have a question? Then he or she can ask it very easily, at invoice level, in the online environment. As a result, you are always in control and can offer your customers the desired solutions.