As an organization, you need a positive cash flow to work efficiently. But we all know you need a good debt collection process to keep a positive cash flow, and optimizing this process can be pretty hard and time investing. But luckily, there are different type of technologies to make the debt collection process a lot easier and less time consuming. So make sure you use these technologies to collect the debts some consumers owe you. It will not only save a lot of time, but also a lot of money.
1. Process automation
Sure, process automation has been known for quite some time and isn’t only important for the debt collection industry. There are many other industries that use modern technologies to automate their business processes. In the debt collection industry, tasks that are usually done by employees, can sometimes be replaced with an automated process by computers or computer software. This way, transitions from one task to the next can be made with minimal human intervention. The result? Saved time and money.
There are different processes you can automate in the debt collection industry. Many debt collection agencies (Dutch: incassobureau) make use of software communication, scheduling or reminder programs, auto dialer programs, integrated payment options and automatic scoring. Automatic scoring makes it easy for debt collection agencies to see which consumer should be contacted first. The tool quickly evaluates the probability of default, which gives insights on which consumers the debt collection agency should keep an eye on.
2. Mobile technology
Of course, we can’t forget mobile technology if we’re talking about modern technologies that have made debt collection easier. With mobile phones, debt collectors are not only better able to keep in touch with each other, but also with the debtors. They can contact them quicker and more often due to mobile technology. Also, payment apps have made it a lot easier to collect debts. Debtors can easily pay through the payment app on their smartphone, which is faster and less susceptible to fraud.
Also in the debt collection industry, mobile technology makes it possible to work on the go. When debt collectors (Dutch: deurwaarder) are out of the office for account visits, they’re still able to work through their phone or tablet, which makes the job a lot more flexible!
3. Predictive analysis
Predictive analysis is another technology to make debt collection easier. If you hire a debt collection agency (Dutch: incassobureau inschakelen), the debt collectors can identify which of your consumers are a potential risk, based on their history and their business profile. The agency makes a forecasts or calculates the probability that a certain event takes place in the future, like one of your consumers not paying. They set up predictive models, varying from client scorings to models that can predict payment patterns. These patterns can indicate that a client is struggling with the payment, so you can be the problems ahead.
Predictive analysis can also enhance the relationship between the collector and debtor. The analysis can show which moment and which communication channel are best to contact the collector about the debt that needs to be paid. This way, debt collection agencies can save time and maximize the amount of collections.
