Debt collection outsourcing is becoming an increasingly widespread practice among companies, which can thus gain access to a series of practical and economic advantages. Firms that need to recover money from their customers often do not have the necessary skills nor the internal structure to carry out particularly technical operations. Or, much more simply, they do not want to get bogged down in long lawsuits and waste time carrying out an action that does not fall within their “main core business”.
We Are Fiber offers various outsourced front office services and an excellent credit management and debt collection system, in order to relieve the company’s internal resources of secondary tasks.
How much does debt collection cost for a company?
Businesses that decide to independently undertake a debt collection action face rather considerable expenses. It is estimated that companies every year resort to debt collection for over 55% of their turnover.
You have to consider that the cost of internal human resources, allocated to the management of unpaid invoices, weighs over 5% on the operating costs of Italian companies. An unpaid debt determines an economic loss not only for the missed collection, but also for all the financial charges deriving from the internal administrative management of the debt collection activities.
Debt collection outsourcing: when to outsource?
The outsourcing of debt collection is suitable for those entities that have to follow various activities, which are difficult to manage internally. Regardless of the size of the company, it is an operation that considerably reduces costs and improves internal productivity. In the field of credit management you have to consider not only the recovery phase, but also the process of the active cycle of working capital. The BPO (Business Process Outsourcing) of credit management therefore becomes an excellent strategic solution and guarantees the following advantages, which we analyse in the following paragraphs:
- cutting of fixed costs;
- the possibility of making use of specialised skills and methodologies;
- leaner and quicker debt collection outsourcing procedures;
- personalisation of debt collection systems.
Debt collection outsourcing, a nice cut to fixed costs
Debt collection outsourcing brings first of all advantages of an economic nature. Costs go from fixed to variable, lightening the expenses for the company and the workload for the internal resources.
The internal management of credit would impose fixed costs on the company, such as the creation of a dedicated section that has to be suitably trained and prepared. In addition, these costs have to be borne even in periods during which they are not necessary.
With the outsourcing of the service, costs are instead linked exclusively to the result obtained and have a limited period of time.
Specialised skills and tools
A company specialised in debt collection, like We Are Fiber, is able to manage and recover credits with specialised skills and a “know-how” built up in the field over time. The service offered proves more effective and punctual than a company that has never operated in this sector and that has other skills. We at We Are Fiber not only have experience in debt collection, but we are able to make the action more targeted depending on the customer and their needs.
We make available to the partner company tools and methodologies that are already consolidated and tried and tested, increasing its own level of skills. Investing in the outsourcing of debt collection means optimising and improving the company’s own assets.
Leaner and quicker procedures
Relying on an outsourced debt collection centre makes it possible to improve some internal company procedures, starting a sort of virtuous circle. We at We Are Fiber, thanks to an in-depth knowledge of the subject, provide you with expert consultants who can identify the internal critical issues and improve the procedural management of the active cycle.
Why has there been a delay in payment? Does communication need to be improved? How and where to intervene to accelerate the debt collection process? Our consultants are able to answer these questions and many others, starting a process of general improvement of all the internal procedures, which become leaner and quicker. In this way costs are reduced significantly and the entire internal working process of the company is optimised.
Personalised debt collection
Debt collection is a rather delicate and, in some ways, also thorny operation. For a company it becomes rather embarrassing to recover credits in a “forced” way, with the risk of ruining the commercial relationship with its own customers.
The client company, by relying on an external debt collection service, is not involved directly. It would be us at We Are Fiber, in agreement with the company, who draw up the most appropriate personalised credit strategies to safeguard the commercial relationship.
If you want to outsource the debt collection service in order to focus more on your “core business”, you can turn to us at We Are Fiber to draw up the strategy most suited to your needs.
We will know how to find the best solution to quickly reach your objectives.
