Profit Recovery Service FAQ
- How does the Profit Recovery Service increase my cash flow?
- How is your service better than a collection agency?
- What is the collection process?
- Why would my business need Accounts Receivable Services?
- How much does it cost?
How does the Profit Recovery Service increase my cash flow?
Our Profit Recovery Service fills a void in the accounts receivable marketplace created by two mature industries, which attempt to help creditors but fall short. Billing software and/or billing companies (the first industry) are extremely good at creating an itemized bill initially and keeping track of what is outstanding. Billing companies, however, usually do not have the systems in place to go after accounts which age past 60 days. When accounts age to this point where they are becoming harder to collect, providers place them with collection agencies (the second industry) with the hope that they will recover some or all of the money. Generally, these agencies produce poor results and charge a large fee to do so.
The gap between these two options creates a huge hole, which is rarely addressed. Our unique service fills the time frame between 60 days (the billing) and 180 days (the credit agency), which dramatically increases the amount of money collected, thus accelerating your cash flow.
How is your service better than a collection agency?
Our innovative system addresses that time frame between the third or fourth bill and the placing of that uncollected bill with an agency. Dyson Consulting Services has created a process, and the systems to drive it, which attacks the root causes of the devaluation of receivables. Research shows there are two main factors which inhibit the conversion of receivables into cash:
- The single most important factor is age. Accounts deteriorate in collectability at an average rate of 10% per month, bad checks at a rate of 25% per month.
- The second factor is the priority debtors place upon the payment of the bill. The lower the priority the lower the commitment to pay.
So recovery is a psychological process wherein the age of the account is inversely proportional to the commitment to pay it. The greater the age, the lower the commitment, and the less likely anyone will collect it. Creditors cannot just hope that their debtors are going to pay. What works is timely and proactive follow-up with sophisticated techniques, which motivate debtors to resolve their outstanding accounts quickly, which largely eliminates the need to employ collection agencies.
What is the collection process?
In essence, there are six separate methods (in order of importance/results) by which any creditor can collect their accounts.
- Initially, sending a bill, invoice or statement.
- Sending internal collection letters
- Making collection telephone calls
- Using a third party such as an attorney or collection agency
- Reporting to a credit bureau
- Litigation (less than 1% of all external collections result from suit)
For the most part, creditors perform the first process well, the second and third indifferently, and therefore have to use methods four through six quite often. What our service has done is put together, for the first time, the last five components of the collection process (2-6 above) into an automated and systematic system which businesses can use at an extremely early aging. This allows Dyson Consulting Services to help their clients collect money faster, cut expenses, and retain satisfied customers, while eliminating the need to employ outside collection agencies.
Why would my business need Accounts Receivable Services?
No matter what business you are in, eventually some of your customers will not pay on time. Every business needs a way to collect these outstanding accounts. Their reasons for not paying will vary, but the results from our service do not. Our system has proven time and time again to collect 41% of the accounts business owners were ready to "write off" at rates as low as 5% of each recovered account.
How much does it cost?
There is a minimal setup fee to get your business started. In most cases, once your business is enrolled we can collect your outstanding accounts for as little as 5% per account. To discuss setup fees, pricing and request your no-obligation collection analysis, contact a representative today.
