TMCnet Feature
May 01, 2020

How technology can make debt collection a lot easier



Every organization needs positive cash flow. Without it, it’s pretty much impossible to work effectively on a daily basis. Also, a secure cash flow has a positive impact on sales and the relationship with suppliers and it will reduce the amount of stress for employees. But how do you make sure your organization has a positive cash flow? We all know the debt collection process can be pretty hard and can take a lot of time. In this article, we give you some tips to make the debt collection process easier and less time consuming. And it’s probably not a surprise: al these tips are related to new technologies.



  1. Process automation

    Process automation isn’t solely upcoming in the debt collection industry. Many industries use new technologies to automate different processes. In the debt collection industry, the importance of process automation is increasing. With process automation, tasks that are usually undertaken by employees, are now replaced by an automated process, done by computers or computer software. The goal is to make transitions from one task to another with minimal human intervention. Why? It saves time and money.

    In the debt collection industry, there are different processes you can automate. For example, many debt collection companies (dutch: incassobureau) have software communication, scheduling or reminder programs, auto dialer programs, integrated payment options and automatic scoring. With these type of automations, debt collection agencies can save a lot of time and money.
     
  2. Mobile technology

    And then there’s mobile technology. Mobile phones can make the debt collection process a lot easier. Not only are debt collectors able to keep closer contact with each other and with the debtors, payment apps have also made it a lot easier to collect debts. If a debtor decides to pay, they can easily do this through the app on their smartphone. It’s faster and less susceptible to fraud.

    Mobile technology also makes it possible to work on the go. This can make the job of debt collectors easier. When they’re out of the office for account visits, they’re still able to update information through their phone or tablet.
     
  3. Predictive analysis

    Another modern technology to easify debt collection, is predictive analysis. With predictive analysis, we can make a forecasts or calculate the probability that a certain event takes place in the future. Predictive analysis is useful to identify which consumers are a potential risk, based on their history and their business profile. Predictive models can vary from a client scoring to models that can predict payment patterns that indicate that a client is struggling with the payment. Also, predictive analysis can enhance the relationship between the collector and debtor. With predictive analysis, collectors can contact debtors at moments and in ways that suit them the best. For example, they can analyze when debtors usually take a break or which communication is the most efficient to collect debts. This way, they can maximize the amount of collections and save time and money.

So, it’s clear that modern technology can make the debt collection process a lot easier. We wish you a lot of luck!



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