Accounts receivable outsourcing is a process that allows small businesses to sell their accounts receivables and other invoices to an external financing company. The financing company gets the invoices at a reduced price and when the due date arrives, it collects cash from your customers at the price stated on the invoice. The financing company can choose to collect the money by itself or seek the services of a money collection service. That way, it is able to make money from the purchased invoices. There are many Accounts Receivable Outsourcing Services in USA that have helped many small business to stay afloat by availing funds owed in a shorter period of time. As a result, the smaller business gets ready money to restock or run its activities.
The process of Accounts Receivable Outsourcing Services in USA begins early with a process known as image capture. In this process, the financing company uses different recording techniques in recording and analysing business transactions. The company indexes transaction documents such as purchasing orders and delivery notes by recording information such as name, date, particulars of the transaction and the invoice number. The company then stores this information digitally so that it can be retrieved with ease. Whenever the information is needed, the company can retrieve it from a computer.
The next step that Accounts Receivable Outsourcing Services in USA take is to scan the Proof of Delivery which is popularly known as POD. The financing company ascertains the signatures on the POD to ensure that the customer actually received the goods. After this, the company concentrates on the creation of invoice statement and when the due date arrives, it initiates the process of collecting cash from debtors. The accounts receivable outsourcing company focuses on good relationship with the clients while at the same time trying to collect money in the shortest time possible.
There are outsourcing companies that develop customized solutions to handle their regular customers. The solutions are based on the relationship that the company has with their customers. In addition, the strategies put in place are dependent on the policies of the company. As long as the situation allow, the financing company makes payments arrangements that are convenient for both the company and the debtor.
It is also important to note that American accounts receivable financing company’s do Outsource accounts receivable services to India. Similar process applies as when the company is operating in the USA. And when the time to repay the invoice arrives, the company sends out phone calls and letters requesting that the invoice be settled. If this time elapses and the debtor is yet to respond with the payments, the company prepares the next course of action. This involves the possible consequences of late payments including fines and additional fees. However, the company has a ready course of action in case of price discrepancies, damaged goods or unsatisfactory service.
There are several activities associated with Accounts Receivables, which are offered by IBN as follows: