Accounts Receivable Credit Management

Reasons to Outsource

There are a number of good reasons why a variety of companies across different industries outsource to accounts receivable management firms. From our experience and knowledge of the market these reasons include:

• Faster and More Complete Debt Recovery
• Save on Costs
• Better Cash Flow Management
• Credit Reporting
• Staff Suited to Demands of Collection
• Expert Knowledge
• Expert Systems
• Litigation Services
• Protection of Brand Image

Faster and More Complete Debt Recovery

The ARMS Group are specialists in accounts receivable management with substantial industry experience using proven and effective techniques and systems. Additionally, switching an account from a client to The ARMS Group often prompts quicker payment as this signals the account that they are being treated more seriously.

One of the keys to recovering delinquent accounts is to refer them to a collections agency earlier. The value of accounts receivables shrinks rapidly as recovery becomes more difficult and less certain -- see chart. As time passes, people accumulate other debts, move, get sick, lose their jobs, file for bankruptcy etc. For companies, extra costs are incurred over time including interest, banking, overhead, restrictions on growth, and recovery costs.

Save on Costs

The ARMS Group reduces administration and staff costs as we assume tasks in a specialist capacity that have previously been completed in-house. Additionally, The ARMS Group helps companies with limited resources during annual leave and seasonal or promotional peaks in business activities. We free time so that in house staff can focus on their main job tasks.

Many companies outsource business activities such as IT, legal, accounting, taxes, and other services that are not cost effective and are too time consuming to perform internally. For these same reasons companies turn to The ARMS Group for accounts receivable management and debt collection services.

Better Cash Flow Management

The ARMS Group can increase cash flow through increasing recovery rates, reducing the average days outstanding, and lowering collections costs. Receivables are managed before they become problems. The ARMS Group provides a Cash Flow Management System and Credit Consulting including Credit Documentation, Credit Management Advice, and Credit Policy Advice. A constant and predictable cash flow from a stable base of clients allows more efficient planning for future growth and capital expenditure.

Credit Reporting

The ARMS Group offers credit checks, analysis, and advice to assist when assessing credit applications or renewing credit. Be aware of potential customers that other firms may have rejected.

Staff Suited to Demands of Collection

Companies have found that it takes a certain and rare type of individual to perform debt collection tasks well over time. Often companies do not have these people. Employees not suited to collections activities find it stressful. Thirty minutes of collections work for these people can impair productivity for the rest of the day. The ARMS Group maintain well trained collections specialists suited to producing results and the emotional requirements of the job.

Expert Knowledge

The ARMS Group are accounts receivable management specialists. We offer expertise in methods, industry practice, credit documentation including terms and conditions, privacy law and laws covering collections.

Expert Systems

The ARMS Group offer efficient techniques, systems, and reports refined through years of proven application in various industries. Our debt collection system has been specifically designed for The ARMS Group.

Litigation Services

ARMS Group debt collectors advise litigation when they determine that any opportunity for account recovery through negotiation has been exhausted. Clients are referred to our Solicitor partners Linton Pitt.

Protection of Brand Image

The ARMS Group Cash Flow Management System avoids uncomfortable situations with customers by shifting emphasis from chasing bad debt to early management of accounts. Customers making or who have made regular payments are less likely to seek similar products/services elsewhere. Additionally, customers approached in a professional manner and according to legal and privacy guidelines are less likely to use the collections experience as a reason not to buy from a company.