Is Invoice factoring a good business practice?

More and more B2B businesses have adopted subscription-based or usage-based business models.  The trend started in B2C with video and audio streaming like Netflix and Spotify.   It has become common practice in B2B businesses as well.  Companies such as Carterpillar list on their catalog usage-based pricing for their excavators (price by tons of earth moved). […]

An Essential Guide to Write an Effective Dunning Letter

A dunning letter is a reminder sent to the customer stating that an invoice was sent and it is past due.   Dunning letters should always include references to the services rendered or product delivered; a copy of the invoice past due and multiple payment options.  it should include a phone number in case the customer […]

Why Top Companies are Choosing AR Automation Solutions

Most businesses across the globe are automating their various business operations to save time and improve the quality of work. They are investing in the AR automation solutions to speed up the various financial operations of their business. This help in reducing DSO, improve payment collections, better invoice management and to maintain a good relationship […]

A Brief Guide to Write the Best Collection Letter to Customers

Writing a collection letter to a customer can be scary.  How to ask for money owed without coming off as rude and annoying? Direct and to the point: Customers don’t read long emails; so the amount and due date should be in bold and in the first sentence of your collection letter.  I usually recommend […]

What is AR Automation and Why Does It Matters

AR Automation, or Accounts Receivable Automation, is the software used to automate all invoice payment reminders. By using customizable workflows and email, SMS, and voicemail templates, one can send thousands of reminders to customers for past due invoices at a click of a button. AR Automation frees up time for AR teams to focus on […]

Why Work from Home is Pushing Businesses to AR Automation

If you regularly invoice clients, you have likely had the experience of chasing down money. It’s time-consuming; frustrating and repetitive.  The customers know they have to pay, they are just playing the clock and delay in the inevitable.  They count on you not doing your job and “forgetting” that they owe you money. With the […]

What is the Impact of Covid-19 on Collections

What a year, we will all remember 2020!  It has also very tough for most of our customers. The food and Retail industries have the most negative impacts Our customers in the Food and Retail industries are in the middle of a perfect storm. In some cases, they have lost 50 to 70% of their […]

Tips and Tricks to Reduce Your DSO

DSO or Days Sales Outstanding is one of the best company wide metric to measure your overall financial performance.  It is calculated as the {Total Account Receivable}/{Total Credit sales in accounting period} X {days in accounting period}.  The unit of measure is in days and best in class companies have DSO as low as 30 […]

In Accounts Receivable, One Size does not Fit All

I just got off the phone with a customer that reminded me how much progress they have made in the last 6 months.   Payment Reminders: Most accounting systems send the same payment reminders over and over. When they started looking at their AR collection process, they found over 2,000 new invoices every month.   They had […]