How Integrated Receivables Reduces Past-Due Payments and Disputes

Very few integrated receivables (IR) platforms provide collections modules, with most focusing solely on cash application. This article explains the unique benefits of the collections module.

Collections Management and Automation

While still fairly new and unique, some integrated receivables (IR) systems provide modules with collection management capabilities to help prevent and convert past-due receivables into cash. Sophisticated AI is used to help determine a customer’s future risk of delinquency, automatically adjust collection strategies based on that risk, prioritize delinquent accounts for optimal cash flow and provide automated outreach for accounts at a lower risk of delinquency. 

Most IR systems with collections platforms use AI and automation support to improve cash flow in the collections process in three main areas:

• Identification: Calculating a customer’s willingness to pay
• Prioritization: Adjusting strategies and priority of a contact.
• Coverage: Contacting the entire portfolio multiple times throughout each collection period

The best IR platforms allow businesses to define the collection strategy and templates used in any automated outreach activity based on a customer’s risk level. These systems use data such as customer payment history, credit bureau data and amount owed to determine risk levels.

Dispute Workflow Enhancement 

Dispute and deduction management workflows are also an area that IR can address. Leading IR systems often include the ability to identify and code disputes and deductions during cash application. Items are then automatically routed to the appropriate team for resolution. This helps businesses:

• Enable real-time collaboration between all teams involved.
• Allow automatic escalations that reduce resolution times.
• Provide real-time reporting for root cause analysis and prevention.

Identifying root causes for disputes and deductions is key to quickly resolving and preventing repeat occurrences. IR allows businesses to eliminate blind spots through clear tracking and reporting. Improving the dispute resolution experience reduces the frustration that can often stem from slow or inconsistent processes.

The best IR platforms enable users to eliminate their old manual processes, disparate data sources, disconnected workflows and multiple spreadsheets. IR can increase efficiency and effectiveness across all areas of receivables management. Contact me or your Treasury Sales Officer for more information. ABI