Cloud-Based Tech Eases Pain of Debt Collection
When you're running a business, maintaining a positive cash flow can be the difference between success and failure. Debt collection is often overlooked as a vital part of the business process, as it has a reputation for being a thankless and awkward task to get right. Thankfully, the digital age has ushered in a new wave of debt collection technology that makes debt collection more effective and seamless than ever before.
With the right automation and business communication tools, you can manage the debt collection process efficiently, maintain positive cash flow and sustain a good relationship with your clients. Here's how.
Manage Your Resources
Time and money are both scarce resources that are vital to any operation, and they should not be wasted on following up on outstanding revenue. By using an automated, intelligent debt collection dialer solution, like the systems offered by 8x8, you can achieve your goals of increasing revenue and recovery rates, while also lowering the costs of collection and freeing up your time to focus on moving forward.
It's no use burying your head in the sand and hoping that unpaid debts never threaten your business — these challenges need to be addressed proactively. Nearly all organizations go through periods where they find it difficult to service debt, and it's almost guaranteed you'll find yourself in a situation where you're waiting for money to arrive in your bank account. The responsible business owner takes that into consideration and invests in debt collection software that can minimize the risks.
Large organizations can usually absorb the costs of unpaid debts, but in a small business, a lack of cash flow can affect your ability to purchase stock, meet your own payment obligations, and reduce net profits. If you don't deal with it, ultimately it can lead to your demise.
Deploying Technology to Solve Business Problems
One of the biggest obstacles an entrepreneur faces when trying to address debt collection is getting ahold of the right people to speak to. Effective call center technology automates the most time-consuming parts of the process using tools like predictive, preview and progressive dialing in order to maximize the amount of time spent solving the problem. It also:
- Boosts call productivity: By using a predictive dialer, your call team can increase talk time with clients by over 400 percent.
- Improves contact rates: A lot of time is wasted trying to reach the right people. A smart dialer system detects and skips voicemail answers, and focuses instead on securing real human interaction when the time is right.
- Is quick and easy to set up: By utilizing cloud-based software, you eliminate the need to buy hardware that can take time to set up correctly.
- Offers a pay-as-you-go option: You are able to customize the system to your exact needs, scale up and down as you need, and only pay for what you use.
The good news is that this technology seems to be working. InsideARM.com, an online resource for the professional debt collection community, summarizes the Bureau of Consumer Financial Protection's October 2018 Complaints Snapshot, stating that 2017 was the first year that complaints around debt collecting were down significantly. "While still representing a little over a quarter of the complaints," InsideArm.com explains, "the year-by-year comparison shows that debt collection complaints are decreasing. It’s also nice to see debt collection no longer wear the crown for the most-complained about product; the new king is credit or consumer reporting."
The 8x8 Long-Term Strategy
Debt collection is a delicate matter for both parties. If it's not handled in a courteous and professional manner, it can poison the relationship between business partners and threaten future projects. 8x8 believes that your strategy should include predefined call scripts to guide live conversations, as well as prerecorded voicemail messages to ensure consistency. These initiatives can go a long way toward protecting the relationship for both debtors and creditors.
8x8's debt collection software is able to boost fund recovery by deploying strategies that make a real difference to your bottom line. The cloud-based communications provider delivers faster notifications to customers about missed payments in order to help them better manage their finances, offers a range of options to help them avoid default and improves your relationship with customers — all while minimizing overhead and maintenance costs.
Your cloud provider and available feature set directly affect your collection business' bottom line. Choose a superior cloud system by filling out our online form today or call us at 1-866-879-8647 to request a no-obligation quote from an 8x8 product specialist.