Credit Management Group

04/09/2019

📣It is Possible to Build Stronger Business Relationships Even When Your Client Doesn’t Pay📣

With our AR approach, we understand that consistent, courteous, and respectful communication goes a long way in maintaining business relationships with customers.

One of the pillars of a successful business is a good relationship with partners. Every business customer should be seen as a life-long partner who will not only continue to do business with your company, but also invite others to do business with you. Disputes are bound to occur in e...

04/09/2019

Your Internal Operations Are to Blame for Outstanding Accounts Receivable, Not Your Clients!
You can fix that with outsourced AR.
Here's why...

👉🏼Efficient Collection Process
👉🏼Maintain Customer Loyalty
👉🏼Improved Customer Service
👉🏼Integrated Collection Process
👉🏼Efficient Internal Operations

Learn more from CMG!

Fix Them with Credit Management Group Most businesses don't realize the extent of cash that is trapped on the balance sheet in the form of accounts receivable. Freeing up the cash through efficient credit management operations can result in optimized working capital. While most busi...

04/08/2019

Your Internal Operations Are to Blame, Not Your Clients

Fix Them with Credit Management Group

Most businesses don't realize the extent of cash that is trapped on the balance sheet in the form of accounts receivable. Freeing up the cash through efficient credit management operations can result in optimized working capital.

While most businesses have formal credit management policies that dictate terms of payment, invoice due, and collection date, not all businesses enforce the policies effectively, resulting in mounting bad debts.

In a bid to boost sales, many businesses ignore credit management best practices. As a result, they stack up bad debts and face financial problems. The blame for bad debts rests with inefficient internal operations instead of customers.

The solution to the problem is to let a professional firm such as Credit Management Group handle your accounts receivable collection tasks.

Why Hire a Third-Party Accounts Receivable Collection Firm? A third-party accounts receivable collection firm can improve the credit management process. Here are some of the ways outsourcing the accounts receivable task can result in improved internal operations and an enhanced cash conversion cycle. Efficient Collection Process -An overwhelming amount of work is required to collect a single invoice. Accounts receivable is not just an accounting function. It is a strategic function that can have a direct impact on the company's profitability. An improvement in the collection process can have a positive effect on the entire organization.

1. Efficient Collection Process - By hiring a third-party accounts receivable collection firm, you can double the efficiency of collecting accounts receivable without hiring additional employees. The firm will utilize its expertise to resolve disputes by calling customers, sending gentle reminders, and following up with credit customers.

2. Maintain Customer Loyalty - An expert accounts receivable collection firm will make sure that the interaction with customers is positive. The firm will utilize tactics to gently remind the customers to pay back the amount due.

Every effort will be made to turn accounts receivable into cash while maintaining good relations with the customers. This will help in keeping customers satisfied and turning them into repeat clients of the business.

3. Improved Customer Service - The process of credit collection should be viewed as a customer service function. This is because of the way you contact the customer to pay back the amount due will have a bearing on the customer's perception of your company.

At every stage, the focus will be on positive interactions even with the most irritating customers. Hiring the services of the professional firm will be an extension of customer services with a focus on getting customers to pay back quickly.

4. Integrated Collection Process - Experienced credit collection firms such as Credit Management Group have an integrated debt-collection process. The integrated approach optimizes credit collection operations and minimizes the risks of bad debts.

5. Efficient Internal Operations -A credit collection company will take care of the entire process, ensuring quick recovery from customers. You don't need to invest in training the internal staff or purchasing costly accounts receivable management software. Outsourcing the task to a third-party will lead to improved and efficient internal operations.

The additional cash generated due to efficient credit management operations can result in increased liquidity, reduced debt levels, and improved profitability. With a strong cash position, a company will be able to take measures to strengthen its competitive position.

Let Credit Management Group help you improve the internal operations and boost the credit collection process. To know more about our unique accounts receivable collection process, you should dial 215-845-5040 today.

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03/27/2019

Building Stronger Business Relationships Even When Your Client Doesn’t Pay

One of the pillars of a successful business is a good relationship with partners. Every business customer should be seen as a life-long partner who will not only continue to do business with your company, but also invite others to do business with you.

Disputes are bound to occur in every business deal that involves accounts receivable. The interests of multiple parties need to be considered when creating an accounts receivable collection strategy. These strategies sometimes create conflicts that damage the business relationship between the two or more parties.

In such a situation, it's essential to handle the issue with tact and resolve disputes with a focus on maintaining a good business relationship.

Importance of Maintaining a Strong Business Relationship

Every business should take the time to build a strong relationship with customers. It's important to treat customers with courtesy and respect even if they don't pay the due amount on time. You need to address and resolve disputes before they make a dent on the relationship.

Making an effort to build a strong business relationship can benefit your company in many ways. Here are just some of the benefits of focusing on building a business relationship with your customers.

1. Differentiation Point - In the present business environment with ever increasing competition, the relationship with customers can help in creating a competitive advantage. Companies that can build a strong bond with customers can thrive in the present business environment.

2. Build a Loyal Customer Base - Companies that focus on maintaining a good relationship with customers can maintain a loyal following. The relationship works in full circles that not only keep the existing customers happy but also bring in additional customers.

3. Enhanced Customer Satisfaction - Another benefit of maintaining a strong business relationship is that it can lead to enhanced customer satisfaction. Satisfied customers will continue to make purchases that will result in the generation of more revenue.

On the other hand, disgruntled customers are more likely to share negative comments about a company. This will hurt the reputation of a company resulting in an adverse effect on the company's profitability.

4. Improved Trust - The long-term success of a company depends on its reputation and trustworthiness. When customers deem a business trustworthy, they are more likely to become loyal customers of the company. This results in more business for the company from the existing customer base.

5. Maximized Lifetime Customer Value - Successful firms understand the value of keeping the customers satisfied. They make every effort to ensure that there is no dent in the business relationship. They know the lifetime customer value and make every effort to maintain a positive relationship with customers at all costs.

A company must endeavor to maintain a strong relationship with customers at all times. At Credit Management Group, we understand that consistent, courteous, and respectful communication goes a long way in maintaining business relationships with customers.

Our experts gently encourage customers to pay back the amount due. We diligently manage the accounts receivables through a unique and systematic collection process. To know more about our accounts receivable collection strategies, you can dial us today at 215-845-5040.

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03/17/2019

The true cost of accounts receivable (AR) is rarely known or just ignored. But the fact is the AR costs can turn out to be surprisingly large.

http://bit.ly/2UHciym

03/14/2019

How Much Is A/R Administration Costing You?

The true cost of accounts receivable (AR) is rarely known or just ignored. But the fact is the AR costs can turn out to be surprisingly large.

A 2017 survey carried out by the Hackett Group found that effective accounts receivable collection strategies can have a positive impact on the gross margin. Companies which can reduce the cash conversion cycle experience 1.2 percent improvement in gross margin. A decrease in DSO by a week can result in nearly 12 percent growth in profitability.

Here are five hidden AR costs that have a direct bearing on the profitability of the company.

1. Cost of Bad Debts - Bad debts can happen when you issue goods on credit. A certain percentage of customers generally don't pay when there is bad debt. The longer the invoice remains unpaid, the more likely it will become a bad debt. Invoices that are not paid for more than a year often turn into bad debts. These bad debts represent a loss to the company. The amount of uncollectable debt is written off by deducting from the gross profit amount.

2. Labor Costs - The accounts and sales team will both be investing time and effort to manage credit customers. They will send invoices, issue reminders, monitor credit limits, reconcile payments, and report on aging debtors. All of these represent hours and, in some cases, days of a difficult task.As the receivables remain unpaid, the cost of accounts receivable collection increases. The cost of telephone calls, follow-up emails, and recordkeeping will increase as the receivables age and hit the bottom line of the company.

3. Cost of Financing - When customers don't pay on time, a business will experience a cash shortfall. To meet the shortfall, overdraft and loan facility will have to be availed. This will result in an increased financing cost and decreased profitability for the company.

4. Time Value of Money - One cost that is often ignored when considering accounts receivable is the time value of money. The concept involves the fact that the money paid today will have more value as compared to the money paid tomorrow. With account receivable, you will receive money later. The delayed payments represent lost opportunity for earning additional income. The longer the money remains unpaid, the greater will be the opportunity cost of accounts receivable.

5. Bad Debt Costs - Bad debts are inevitable with accounts receivable. Invoices that remain unpaid for more than 12 months are likely to cause bad debts. The unpaid invoice amount eats away at the profitability of the company. The reduced profitability along with a cash shortfall due to outstanding debts worsens the liquidity position of the company.

A company should take every possible measure to prevent the aging of accounts receivable. Consider offering an incentive to customers to pay back the amount due earlier. Also, collecting some money in advance can reduce the damage due to unpaid invoices.

Credit Management Group can help you recover the accounts receivable through an integrated four-stage management/collection process. If you want to know more about our process, you can contact us by dialing 215-845-5040.

http://1m.ag/lW8eb

02/23/2019

Managing bad debt is particularly crucial for small businesses. Bad debt will:
⓵ Reduced Profit Margin
⓶ Difficulty in Obtaining Loans
⓷ Prevent Growth of a Business
⓸ Increases Risk of a Bankruptcy

Reduce cash flow problems by outsourcing your Accounts Receivables. It is an option more and more businesses are relying on. Reach out to the professionals with a proven track record today!
https://ecs.page.link/a6bY

02/15/2019

Cash Flow is a major issue for a lot of SMBs.

Consider the following solutions:
💰Shortening the Accounts Receivable Cycle (we can help)
💰Leasing to Boost Cash Flow
💰Requesting an Initial Deposit
💰Discovering New Income Sources
💰Develop a Layaway Sales Program

https://ecs.page.link/WBzn

Connect with us to learn how Credit Management Group can shorten your AR cycle and help you accelerate the customer collection process.

11/02/2018

Cashflow Management 101 for Businesses

Cashflow management is essential for the survival of any business. Whether you an owner of a small business or the financially responsible party for a larger company you need to efficiently manage your cash through effective cashflow management.

But what does cashflow management actually means? And why it's important for business to efficiently manage their cashflow? How can you monitor the cashflow? Answers to these questions are explained in this article.

What is Cashflow Management?

Cashflow management is the process of monitoring and https://www.thebalancesmb.com/cash-flow-management-2947138 of the company. It involves estimating the cash inflow and outflow during a period, and evaluating whether a surplus or shortfall in cash will occur.

If the cash inflow is estimated to be more than the outflow at any period, a company will likely experience a cash surplus. On the other hand, if the cash inflow is estimated to be less than cash outflow, a company will probably experience a cash shortfall.

Why Cashflow Management is Important?

Effective cashflow management provides value to businesses in many ways. Here are four critical reasons why effective management of cashflow is important regardless of company size.

1. Maintain Solvency

Cashflow management is important for all companies, particularly small businesses, to maintain solvency. Lack of cash is the main reason most startups fail. Having adequate cash in the bank account is important to meet operational expenses and ensure continuing of the business.

Without cash, your business can't operate for long. That's why it's essential to manage your company's cashflow effectively.

2. Critical for Service Businesses

Cashflow management is important for service oriented businesses as well as companies selling products. In order to stay competitive, the companies need to provide services at competitive prices.

Cashflow management is critical. All firms need to be especially diligent in managing accounts receivable to improve cash flow position.

3. Important for Seasonal Businesses

Effective cashflow management is also important for seasonal businesses like travel agencies, lawn care companies, outdoor adventure firms, and holiday retailers. While managing cash flow for seasonable businesses can be challenging, it can be done with the right technique.

4. Reduce Operational Costs and Improve Profitability

Lastly, effective management of cashflow can help boost profitability. It allows you to improve operational costs by relying less on costly internal finances. You can also outsource non-core activities thereby making the internal operations more cost efficient. The result will be a positive effect on the company's bottom line.

How Can You Monitor Your Company's Cashflow?

Cashflow position can easily be analyzed if you use an accounting software such as Xero or QuickBooks. The software can generate a cashflow report showing cash inflow and outflow during a particular period. The software can also run a cash flow forecast report by analyzing your receivables, payables, and bank accounts.

To sum up, cash is the most precious resource for any company. You need to diligently manage the cash in order to cut costs and improve profitability.

http://www.creditmgtgroup.com/ can help companies improve their cashflow position through accelerating payment through proper accounts receivable management at a cost that cannot be duplicated internally. We employ a proven, diplomatic four-phase process to encourage customers to resolve their outstanding obligations with our clients without ever jeopardizing client retention.

To find out more information on how we can help to accelerate customer payments through efficient management of accounts receivable, contact us by dialing 215-845-5040 today.

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03/01/2018

Save Money Save Time

Outsourcing as a Cost Saving Measure for Corporations

Most companies face a lot challenges in keeping the cost down. The very success of their operations depends on being able to cut down the costs without jeopardizing their mission.

One effective measure that most managers tend to overlook is outsourcing non-core activities. Here, we are five ways in which corporations can benefit from outsourcing activities such as payroll and accounts receivable management to third-parties.

1. Cut Operational Costs

Outsourcing is more cost-effective as compared to employing individuals to carry out the tasks. The overhead costs of performing operations internally are high.

With outsourcing, operational costs can be cut down drastically. No need to pay extra for office space or to deal with rising employment costs. Outsourced services can be availed for a fixed time period and at a relatively more consistent cost, resulting in cost savings.

2. Leverage from Higher Expertise and Skills

Hiring staff with specialized skills costs a lot to companies. On the other hand, hiring non-specialized experts results in decreased efficiency and subsequently increased internal costs.

By outsourcing activities, companies can leverage from professional expertise at a fraction of a cost. This results in more efficient internal operations.

3. Extension of the Company

Many outsourcing companies operate as an extension of the company. They understand the intricacies of the operations and offer customized services. This helps them offer the best-in-class services, maintaining quality metrics for processes and customer service.

4. Efficient Internal Operations

Outsourcing internal non-core operations to reputable companies can make internal operations more efficient. In fact, it is one of the most effective measures that can be employed to benefit from the efficiencies of improved internal operations. Improved internal operations will result in greater overall productivity. This will result in positive impact on the bottom-line.

5. Stay Current with Laws and Regulations

Non-conformance with rules regarding taxation, payroll, accounts receivable collection can result in stiff penalties. Outsourcing the activities can ensure that the operations keep running smoothly with no unexpected turn of events due to non-conformance of existing rules and regulations.

6. Take Away

Outsourcing can provide organizations with great operational efficiencies. By outsourcing tasks such as payroll and accounts receivable management, cash flow position can be greatly improved. It can also result in more effective internal operations and avoid legal headaches.

http://www.creditmgtgroup.com/ has a dedicated accounts receivable management process. Our unique four-stage process allows you to get paid faster resulting in the availability of additional funds that can be used to meet expenses and expanding operations. Call us today by dialing 215-845-5040 to find out how your firm can benefit from our effective accounts receivable management process.

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01/26/2018

Cash Flow Case Study

Credit Management Group (CMG) Helping Clients Improve Cash Flow with Its Proven A/R Management Process

Credit Management Group (CMG) has helped out clients in streamlining their account receivable system. We have a unique 4 Phase Accounts Receivable Management system that is proven to cut internal costs, improve cash flow, and streamline internal operations of a company.

Our highly effective debt management process is tailored to meet the needs of different clients. Here we will present a case study that demonstrates the effectiveness of our tactful approach to accounts receivable management in maximizing the company's profits.

The Winning Formula for Our Clients

CMG has assisted a lot of businesses and individuals in getting back the amount owed. By diligently following up with the debtors, we are able to accelerate the cash receipts for our customers. The effectiveness of our debt management process can be determined from the results of the accounts handled by us in 2017.

Beginning with Phase 1, the analysis of accounts receivables aged more than 45 days showed that CMG's billing totaled $7,875.00, as of October 1, 2017.

Following the implementation of Phase 1, our clients collected or worked out payment plans totaling $354,409.23. The total cost for collecting accounts receivables was just 2.22% of the amount of money recovered.

At the end of 45 days, a total of 235 accounts were settled or payment plans worked out. The amount collected for our clients under Phase 1 is more than 52.00% of the total billing value.

The outcome of the Phase 1 of our debt management process gives an overview of how effective our system has been in improving cash flow position of our clients. Using our proven 4 Phase management process, we were able to help clients in timely collection of their accounts receivable.

Our effective debt management strategies are aimed at easing the burden of tackling debtors with the overarching aim of customer retention.

Take Away

We have provided this financial information so that you can determine the effectiveness of our debt management process. The case study shows that your business will benefit when you outsource your accounts receivable management task to us. Outsourcing the accounts receiveable task will result in improved cash flow and profitability for your company.

Our accounts receivable management process is one-of-a-kind in that it helps in getting the amount due paid faster without jeopardizing client retention. The process starts right after you assigns us the debt management task, and continues till the amount has been collected from the debtors.

https://us.hideproxy.me/go.php?u=EJTP2z2moRvC5qIQzM1k3XT70Y9wfukUWv4%3D&b=5 is a dedicated accounts receivable management company. Contact us today by dialing 215-845-5040 to benefit from our proven accounts receivable management process.

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