News for Credit Professionals



Five Keys to Outsourcing Receivables

Collect Sooner Rather than Not at All
The accounts receivables staff is often tasked with collecting aging receivables. These people usually have other responsibilities and may naturally put off doing collection work simply because it is not anyone's favorite task.  Since the longer a debt remains unpaid, the less likely it is ever to be collected, delay in collecting can be costly.  NACM-SE's collection division understands this principal and employs a collection model to collect sooner rather than later, recovering money that otherwise might be gone forever.

Maximize Revenue
In some companies, salespeople do not receive their full commission until all monies are received from clients, thus forcing salespeople to spend at least some of their time working in an accounting function.  Not only can this lead to confusion and deterioration of relations with clients, but the unfortunate outcome of this practice is that every minute spent collecting is a minute spent not generating future revenue.

Keep the Door Open for Additional Business from Existing Customers
Retaining existing customers is generally much less expensive than acquiring new ones. By utilizing NACM-SE, companies distance themselves from the role of bad cop when existing clients are reluctant to pay. The first notice from NACM-SE may be enough to spur the customer into action while allowing the relationship between the parties to remain cordial or neutral.

Work with, not against, Prevailing Business Practices
One way companies manage cash flow is by holding payables as long as possible.  Every company has a philosophy, if not an actual written policy, about when to pay their bills.  Sometimes the philosophy dictates that bills are not paid until creditors demand payment in terms stronger than a monthly statement.  A letter or a call from NACM-SE is often the trigger for a check to be released.

Save Money by Paying Only for Results
When receivables are significant, there may be a dedicated collections person who is paid a salary regardless of how much bad debt is recovered.  NACM-SE is paid only when we collect, so companies using our collection services can often save the expense of salaried employees.

Since banks review balance sheets when deciding to make loans or extend lines of credit, it is important to have as small an amount of old receivables as possible, while at the same time extending credit to new and existing customers to fuel growth. By implementing a policy of collecting early and regularly through a neutral third party such as NACM-SE, companies keep their customer relationships and their books healthy while improving their credit worthiness.

NACM-SE Collection Services Offers:

  • Customizable on-line reporting
  • On-line placement
  • Free-Demand service
  • Dedicated account manager
  • Litigation coordination service
  • On-line account monitoring
  • Over 100 years of service and experience