In a recently released study conducted by Euler Hermes ACI, outsourcing commercial collections was shown to have a positive effect on company value. The report, entitled "The 411 on Outsourcing Commercial Collections," stated, "engaging the services of a commercial collection company is about safeguarding the assets of a company, which is imperative for any company’s financial well-being."
"By using an established provider of accounts receivable management, a company can keep its internal credit management staff focused on the function for which it is trained," said Michael Puckett, president of Euler Hermes’ commercial collections arm, Euler Hermes UMA. "Through outsourcing, a company can eliminate in-house costs in a way similar to utilizing a payroll company or benefits management provider."
Puckett added that a solid collections strategy and reputation is also necessary to increasing company value. "Early placement policies and systematic pursuit of slow and non-payers will announce to customers and prospects alike that your company is serious about collecting what is due for goods and services," he said. "The opposite perception is no advantage in the marketplace."
Source: Jacob Barron, NACM staff writer
To learn more about CMA’s Commercial Collection Services click here or call Raul Mendoza, CMA Collection Specialist at 818-972-5325.