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How Digital Tools are Transforming the Way Microfinance Institutions (MFIs) Collect Loan Repayments

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The benefits of digital tools in loan repayment collection

How Digital Tools are Transforming the Way Microfinance Institutions (MFIs) Collect Loan Repayments

Microfinance institutions (MFIs) are financial agencies that provide small loans to customers who need access to banking facilities. A loan below Rs. 1 lakh will be considered a microloan microfinance institution’s offer. Microloans have various benefits for people and are essential to economic development. However, microfinance faces several challenges, including a need for more investment validation, debt collection, and more.

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The Challenges for Microfinance Institutions (MFIs)

The main objective of the microfinance concept is the financial growth of backward sections, especially women in India. This concept has helped improve the country’s economy since it was introduced. But MFIs still face several challenges that they must overcome. The MFIs face indebtedness because of poor risk management. Microfinance institutions provide collateral for loans, increasing the risk of bad debt. Hence, microfinance institutions require a robust risk management system.

Another issue microfinance institutions face is regulatory oversight. The RBI is the premier regulatory body for MFIs in India. Some regulations from the RBI benefit MFIs, but other regulations must address any issues. With new regulations, microfinance experiences structural and operational changes, which also cause ambiguity in norms of conduct. Hence, the microfinance industry requires separate regulatory authorities to survive.

Microfinance institutions are as dependent on the Indian banking system as commercial banks, and most MFIs are non-governmental organizations (NGOs). The banks help MFIS stabilize the fund and carry out their lending activities. The commercial banks that offer loans to microfinance institutes charge higher interest rates for a shorter period. It causes microfinance institutions to charge higher loan interest rates than mainstream banks. Also, people prefer loans with low-interest rates, causing MFIs to lose potential customers. 

The solution to these challenges for the microfinance institution includes proper regulation, a complete variety of products, different sources of funds, technology like debt collection software, etc.

The Benefits of Digital Tools in Loan Repayment Collection

Digital tools like automated cash collection solutions help MFIs minimize the risk of defaults. Moreover, digital tools offer more benefits to MFIs. Let’s look at the key benefits of digital tools hold for loan repayment collection:

Tracking the Loans Correctly

With a digital solution, MFIs can track debtor accounts. You can easily access the unpaid loan data immediately with the help of a Cash collection system. For instance, one of your customers purchases a loan from you to buy a car and pay off their loans. Normally, it takes a long time to update this information. However, if you have an automated system, you can see loan repayment updates immediately. You can also track your buyer’s financial position and find the right time to connect and remind them to repay the remaining loan.

Automate Communication with Borrowers

Debt collection software allows lenders to automate communication with their borrowers across several channels, such as SMS, email, and calls. People have different preferences for communication channels. You can improve your customer contact strategies by using digital tools to determine which communication channel each customer prefers.

For example, some customers may feel more comfortable sending an email, while others may prefer a live chat. The digital solution gives you a clear picture of which channels your customers prefer so that you can tailor your message to each one. You can also automate contacting people to improve your debt collection.

Sending Timely Repayment Notifications

Aside from recovering debt, a digital solution can make any process automated. Hence, improving the workflows for the organization. It will help the MFIs to reach the larger customer pool as your service volume increases.

Automation also helps you regularly send notifications to customers to help them remember to repay their loans. It reduces the risk of bad debt and allows you to recover the loan on time. It can send messages to customers via different channels and can keep a conversation with them at any time. Digital solutions also analyze and predict the best time to contact clients.

Streamlining the Tasks

Another benefit of automation in the operation of the microfinance sector is that it drives more efficiency. Digital solutions help generate machine learning-based chatbots that communicate with your clients in their language. It can also increase agent efficiency by freeing call center agents for other, more complex tasks. It also saves a lot of time to conduct manual and transactional processes for the organization.

Automation also aids MFIs in testing different strategies and discovering one that works best. You can make small changes in send time or written copy and compare them with each other to find the best engagement results.

Better Transparency between Lenders and Borrowers

Using digital solutions to maintain transparency between the borrowers allows lenders to obtain comprehensive insight into customers. Lenders can easily access the data describing borrowers’ behavior with a cash collection tool. It helps lenders choose the right borrowers and better understand the customer’s credit risk. It also helps MFIs to make better and faster decisions regarding loan applications. In simple words, digital solutions help collectors to predict future repayment and the risk of delinquency. With this MFIs can significantly protect themselves from the risk of delinquency. It also allows lenders to find trustworthy clients who can repay their loans on time.

Calculating Additional Charges Due to Late Repayment

A debt collection software is integrated with various digital tools and technologies. Hence, MFIs can use this software to instantly calculate their customer’s overall due loan information. It can also send this information to respective customers and help them understand the repayment plan. Knowing the penalties on their late loan repayment will prevent the customers from becoming delinquent. It enables you to get your money fast and maintain the cash flow. Effective collection software solutions include convenient payment options for customers, making a collection of signatures for payment arrangements easier

Quick and Hassle-free Dispute Management

With digital solutions, you can notify your clients about the progress of their disputes, analyze the cause, and speed up the resolutions. It will help MFI boost its image as a reliable sales partner. Automating the collection process allows you to send the payment reminder notice before the invoice is due. It also reduces the risk of errors, meaning less cause of dispute between the customers. A cash collection software tracks and collects all relevant information about the customer accounts to reduce the chance of misunderstanding when different employees work on the same accounts. Hence, you can improve customer satisfaction with digital solutions by providing accurate and responsive information about their account status. 

Conclusion

Nowadays, people prefer companies that offer a wide range of payment options. The microfinance sector also uses the technology to improve its Cash collection system. MIMOIQ offers a well-integrated software solution for NBFCs and microfinance institutions along with cash collection services. The cash collection software helps the MFI handle all their cash management needs. The key benefits of debt collection software service from MIMOIQ include simple-to-use service, reduced risk of fraud, theft, & mismanagement, and fast settlements.

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How to set up a Systematic and Efficient Cash Collection System

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How to set up a Systematic and Efficient Cash Collection System

One of the pains every entrepreneur goes through is collecting payments or getting invoices cleared. For business growth, it is vital to have a proper cash collection process that will also improve the cash cycle. Customers or clients will not pay you on the scheduled timeline, creating issues. Implement collection strategies and best practices for cash collections in your company to make it more likely that you will get paid on time or early. Even though late invoices are very typical for many firms, you can still battle them. The key here is following the right process. You can strengthen your collection procedures to speed up payments and keep control of your cash flow.

This article presents you with the complete cash collection system to follow in your business for easy flow –

Table of Contents

Adopt Cloud System

Keeping track of bills and unpaid invoices for an accounts department and knowing when cash is coming in is a big job. Cloud-based services store all your data in the cloud, and you can access it online. They are not only safer, but many of them have anti-cybercrime safeguards in place. Maintaining all your data in the cloud also provides security against stolen hardware, such as during a robbery.

Also, even if your operating system gets broken, you won’t lose any data and can keep working. Keep all your accounting data in the cloud, where it will be safe and accessible.

Seek Payment in Advance

You know you are on the right track when you begin a new task or project with the knowledge that your cash balance will not be negative.

The best approach to preventing having to track down clients who postpone payments is to get paid upfront.

Is it likely that your customers will make a deposit? It entirely depends on their level of confidence in you. They will pay you the advance if you have been delivering the work on time. Offering a discount for early payment as an incentive can set a positive example. The risk of non-payment is decreased by advanced payment, which gives you peace of mind. It enables better budgeting and allows you to reinvest the money. When they are enthusiastic about the idea, make the biggest request before you begin working.

Setting up the Retainer

It makes sense to bill on a retainer. It benefits both you and your customers. Clients can more easily plan their budgets and balance their cash flow thanks to a retainer program. Look at the annual payments from your existing big clients. To get a monthly amount, divide that by twelve. Send them a proposal with a list of the services they utilize in a calendar year. Include a scope document that lists the services they will get for the monthly fee and any extra services that need a work order that has already been approved.

Reviewing your Policy of Billing Dates and Procedures

Ensure that invoices are sent out on time and contain all relevant information. While sending the invoice, provide the complete payment collection terms set by your company.

Some businesses have gotten paid faster by switching from billing customers twice a month to once weekly. Invoicing early in the month is also a great idea. If your invoice falls outside a company’s once-monthly check run, you will have to wait 30 days to get paid.

Make Payment Collection Process Handy

If you expect faster cash collection, setting up an effortless process is vital. Provide all accepted forms of payment. Make sure your invoices’ contact details and mailing addresses are correct for remittance. It will help if you rent a payment envelope with the appropriate remittance address. Use detailed invoices so the customer can pay and maintain a record of the invoice and payment. Use MFI and the banking system to make the collection of cash easy.

Automated Collection Process

Cash collection software is the best way to make things easy for both parties. Using software that has the feature of payment reminders can help in a large sense. The key managers will receive a weekly email from the cash collection software detailing overdue payments from clients and which accounts you should keep an eye on. It displays the number of consumers contacted or issued reminders, giving you advance notice if your collection attempts fail.

When money is tight, most firms divide their bills into “must pay” and “like to pay” categories. Your bill will be placed at the top of the “must pay” pile if you are a company that calls after a bill is one day overdue. If one of your clients has a reputation for late payments, it signals the regular period for cash collection.

Reminding Clients days before the Due Date

Most folks only call once the invoice is 30 days past due. That is a severe error. You should call a client for the first time three to five days before the invoice due date. Present the call as a customer service call to see how satisfied the client is and ensure that the invoice was received and understood. Obtain a commitment regarding the timing of payment.

Be prepared to address any customer service difficulties. When you try to keep customers from giving you money, they will tell you what is wrong with your service delivery approach.

Setting up Helpful Notifications

We receive constant notifications when we use different tools, including email and social media. The constant pings and alarm pop-ups can be annoying. They disrupt your concentration and take your attention away from your vital job. As a driven entrepreneur, responding to the bulk of notifications wastes time and energy. Additionally, useless messages drain your employees’ precious energy.

Some notifications, though, can be advantageous and assist you in saving time rather than wasting it. You can create alerts for specific situations by using cloud-based software. It allows you to stop constantly monitoring and checking in and assume everything is going according to plan until you receive a notification.

Use App to Stay Updated about Payments

Does your company spend excessive time monitoring late payers, following up with clients, and dealing with cash flow concerns brought on by missed payments? If yes, you need to invest in an application or service that can manage the payment process and keep you updated.

You can easily keep track of your unpaid bills with the aid of apps or services like MIMOIQ. Features include offering tried-and-true templates, flexible scheduling to organize your follow-up schedule, and an enlightening guide to assist you in making decisions.

Conclusion

Getting evolved with the cash collection process will help you keep going ahead. Set aside time to carefully analyze your cash collection process if you are serious about expanding your business and ensuring your crew is operating at the highest level of productivity.

You can improve your cash collection management and administration by using cloud-based technologies. These technologies can automate many boring tasks, saving time and effort. MIMOIQ is the best service provider for cash collection and settlements and makes things easy in the long term. A good money flow with effective invoice clearance will help keep the business running in the long run. It will further help to free up time for you to concentrate on tasks that will aid in the expansion of your business, such as marketing and new product development.

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What to Look for in a Cash Collection Software in India

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What to Look for in a Cash Collection Software in India

Cash collection software is becoming increasingly crucial for businesses in India. With so many options to choose from, it can take time to find the right cash collection software for your business. We’ve made a list of the most important things to look for in cash collection software in India so you can make an informed choice. By keeping an eye out for these features, you can ensure that the cash collection software you choose meets your needs and gives you the best value.

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User-friendly interface

 

When choosing cash collection software for your business, making sure the interface is simple and easy to understand is essential. It can be crucial when dealing with debt collection management. For your employees to be able to collect payments, they need to have access to a simple and easy-to-use tool. A user-friendly interface makes it easy for employees to enter data quickly and correctly, which cuts down on mistakes and speeds up the process. 

 It should also give helpful tips, alerts, and suggestions when information is entered so that the whole debt collection management process works well. Make sure you look at the software’s interface before making any decisions.

Advanced features

Debt collection management is an important part of any business and having the right software in place can make a big difference. When looking for cash collection software in India, it’s important to consider what features the system offers and how they will benefit your business. Here are some of the advanced features to look for when selecting cash collection software for your business:

 

  • Automated Reminders: A reliable cash collection software should have an automated reminder system that can send emails, SMS messages, or other notifications to remind customers of their payment due dates. This feature lets you stay on top of payments without manually tracking them.
  •  Scheduling: Scheduling features enable you to organize and automate your debt collection process. This feature allows you to set up recurring payments, schedule payment reminders, and create payment plans.
  • Reports: A good cash collection software should give you different reports that help you understand how your debt collection process works. Reports can include overdue payments, total collected payments, and average payment times.
  • Customizable Workflows: Customizable workflows let you make unique rules and processes for handling debt collection tasks for each customer. It ensures that every customer gets the same level of service and support from your business, no matter their situation.
  • Collection Management: A sound collection management system lets you keep track of all parts of the debt collection process, such as invoices, reminders, payments, and reports. You can also use the system to track how much money you have collected over time. It will help you figure out where your debt collection process needs improvement.

With these advanced features, cash collection software in India can assist your company in improving how it collects debts and gets the most money possible. Look for a solution with these features to get the most out of it and make your customers happier.

Integration capability

When looking for cash collection software in India, one of the most important things to look for is the ability to integrate. With an integrated solution, you should be able to sync your payment system with your accounting software and other external systems, such as CRM, customer data, and accounting. This way, you can ensure that all relevant data is easy to find and up-to-date, making data collection easier and more efficient. Integrated cash collection software makes it easy to match payments to invoices and track where payments stand. 

You will also be able to identify key trends in your collection data that could help you improve efficiency.

Security

To run a successful business in the banking industry, you need cash collection software that is reliable and safe. When choosing cash collection software, it’s essential to keep a few key things in mind to ensure your business runs smoothly and safely. Security is one of the most important features to look for when selecting cash collection software in India. To protect sensitive customer information and any cash you collect, you should add strong encryption and authentication to the software. Also, it should have features that make sure it follows local rules about debt collection management, such as the Payment Card Industry Data Security Standard (PCI DSS). If you choose software that meets all these requirements, you can be sure that your cash collection operations will continue to be safe and legal.

Pricing

Regarding cash collection software, pricing can be a major factor in deciding. But it’s important to consider more than just price when choosing cash collection software. It would help if you looked for features like debt collection management and automatic payment processing to get the most out of your software. Debt collection management lets you manage your receivables effectively and efficiently, and automated payment processing saves time and reduces the amount of data entry that needs to be done manually. Also, look for software that can help you track your accounts receivable with features like flexible payment options and analytics tools. These features will help you get the most out of your business, bring in more money, and keep things running smoothly.

Conclusion

Debt collection management can be complex, especially for businesses with a large customer base in India. To successfully get money from customers, you need to choose software that fits your needs and your budget. When choosing a cash collection software in India, look for the following important features: automated invoice creation, customer segmentation, customizable payment options, automated debt collection reminders, and analytics and reporting. With the right software and cash collection services from MIMOIQ, businesses can be sure that they can collect debts more quickly and correctly.

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Things to consider when choosing the right Cash Collection Software

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Things to consider when choosing the right Cash Collection Software

Selecting a cash collection management system can take time and effort. Whether you’re carrying the load alone or working with other departments, in either case, research, time, and action are needed.

However, a collection management system is essential to maintaining your AR collection, whether you are making your first purchase or switching from your current system. The exemplary system makes your employees more productive, reduces frustration and wasted time in the company, and shows your AR to a wider range of people. Your time spent finding answers will ultimately be worthwhile.

Most organizations use various software tools to keep their back and front offices working smoothly. Even if you already use customer relationship management (CRM) and enterprise resource planning (ERP), you may still need a tool to help you collect a debt.

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Why do you need cash collection automation software?

Every company’s account receivable (AR) department faces the difficult task of collecting unpaid debts. This laborious process, one of your company’s most crucial aspects, might seem intimidating. Some primary reasons why cash collection automation software having are the best investment for a business 

  • Ready Account Information - The best part of using the software is that all account-related information is readily available. Your collectors will spend vital time communicating with customers rather than collecting cash.
  • Keeping AR Department on Track - Using the software, the account receivable department will get real-time information about the money that is still owed. So all users of the tool stay updated.
  • Less Error - Most of your clients want to pay you, and they want to pay you on time. By improving your invoices, you can reduce mistakes, ensure clients get their orders on time, and make them happier.
  • Streamlining Accounts - Accepting other forms of payment, such as debit/credit cards, checks, and more, will help you streamline accounts receivable even further.

Consideration when choosing debt collection software -

MFIs, banks, and financial companies are now investing in debt collection software, making the process quite handy. So, when you are considering the collection software, there are a few things you need to consider-

Skills of users

It would help to consider how frequently and with what level of expertise your team will use the tool. People who need to learn more about cash collection may want a simple program with functions that are easy to understand, especially in an accounting office where cash collection is only one part of the job. It is vital to ensure that the tool’s team has the skill to run it appropriately. On the other hand, if you are choosing software for a debt collection agency, you may find that such streamlined systems need to be expanded, and you need to look for a more complete debt collection software package.

Has Complete Features

To make the software more user-friendly, it should have a full feature on its collector dashboard. The tracking and management processes are essential. Make sure you pick a system that communicates information in a way that is both helpful and understandable. A good software program for collecting cash can update and organize data from many different files quickly and easily, giving you quick access to critical information.

Doesn't Create Work Overload

Businesses are terrified of implementing new tools because of the workload involved. People often think implementing a new way of working will take a long time because everyone in the organization needs to learn how to use the new technology. Additionally, some people worry that their staff will feel overloaded by the wide variety of tools available and that the company will wind up underutilizing such a potent tool.

But as part of your plan, buying software to help you manage cash collection is easy and simple. With the help of products like ours, internal collection agents can immediately become more independent of IT departments.

Check the Price

Price is something you need to consider. A cheap bundle is only worth the money if the system is reliable. Instead, start by looking for software that will meet your demands, then evaluate the prices of these options. Then, before making a purchase, think twice about adding a luxury program with eye-catching features that you won’t use. You can find savings by shopping, so get in touch with several suppliers to compare pricing.

How can cash collection management help you?

Using cash collection management has wider benefits for the company. Once you install the right tool, things are more accessible than before. Some of the ways how cash collection management will help you are –

Completely Automated Revenue Process

Using an automated revenue recovery method, you can reduce the amount of money you lose from declined transactions and bad debt. Businesses frequently find it more challenging to collect past-due invoices as their customer base increases. Using the automated process, you can make the customers’ experience easy by accepting credit cards and other payment methods and setting up QuickPay landing sites.

Your team won’t have to wait in lengthy call lines during business hours or manually enter a link found on a letter. Customers seek a quick fix and have an underlying desire for action and control. When they can make a payment, they want to feel free to do so without having to endure lengthy procedures.

Centralizing Debt Collection

The degree to which cash collection software integrates and centralizes a collection strategy can significantly improve how things are done. In an organization, there are many distinct types of debt, which can make operations challenging. For instance, you might owe several consumers money to various departments or for services. It results in a complicated paper trail when applied to businesses with huge employees, including local customers who handle their sales and accounts.

You can make a more effective plan by putting all of these accounts in one place, which you can do with cash collection software. Having all your data in one location will allow you to establish centralized debt collection and make decision-making easier.

Mitigating Debt Collection Problem before arising

Debt collection software can use artificial intelligence and information about how people act to rate consumers and spot possible risks before an account goes into the collections cycle.

For example, the software can use digital marketing KPIs to find clients who have ignored or been slow to open emails and texts sent at the beginning of the customer journey. It means mistakes are possible, which could be a problem for people who want a certain strategy. Having this kind of insight in your arsenal makes it possible to personalize the customer journey based on a person’s circumstances.

You might even alter the channel and communication tone using the information provided. You do this by making a goodwill gesture, such as waiving payment due dates and contrasting the situation with the status quo by evaluating what your rivals would do in the same situation.

Identifying possible credit risks and problematic behaviors before they manifest allows you to leverage data and technology to your advantage and provide a rich, satisfying client experience. Financial hardship and busy lifestyles are commonplace in the modern world.

It is Adaptable

Being adaptive is a vital component of any cash collection software. It would help if you had software that could scale to meet the needs of your business. Invest in a tool that can test how well the different touchpoints in the collection’s journey work as you put them in place and make the necessary changes.

Adaptive cash collection software for businesses will not only compile data and quickly identify potential payment issues before they occur, but it will also function in a way that will minimize conflicts with no additional work on the user’s part.

Summing it up

Once you know the features, benefits, and methods of choosing cash collection automation software, it becomes easy to invest. MIMOIQ is the leading company that helps in cash collection using the right tool. The cash collection service by MIMOIQ safeguards your deposits and helps to maximize the cash flow. Connect now and lower your risk of cash collection fraud.

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How can Cash Collection Automation Software keep you out of Trouble?

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How can Cash Collection Automation Software keep you out of Trouble?

Every organization has a cash collection team that controls incoming and outgoing cash daily and other accounting work. The cash collection process cycle starts as soon as a customer orders. The collection team must update the daily transaction accounting database while maintaining the security and privacy of financial records. Manually doing this process will take more time and be prone to error.

Understanding the challenges in the cash collection process and addressing them with optimal solutions is essential. Many organizations seek help from technology, as technology saves business from many challenges in the modern market. Cash collection software can save the collection teams from various problems.

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Challenges faced by cash collection teams

Here’s a list of common problems that a cash collection team faces during the cash collection process.

Poor cash visibility

Organizations require high cash visibility to make decisions. An efficient collection process can result in high visibility. Also, data distributed across ERPs, TMS, sales order systems, and bank portals limits visibility. Low cash flow visibility can also reduce the accuracy of the projection, making it difficult for companies to make effective decisions.

Lack of security

Companies that perform cash collection processes manually are at more risk of cyber threats. Since manual systems lack data encryption that prevents hackers from getting into your system, you should protect the sensitive data your customer shares during a transaction, so your customer, business partners, and merchants maintain trust in your company.

Slow speed

Manually processing the collection is time-consuming. If you can speed up this workflow, you will avoid hitting delays or failing to capitalize on early payment discounts. Sometimes, companies need help keeping up with the payment due dates and loan collections. For instance, banks and money lenders face the problem of bad debt due to the slow speed of the cash collection process.

Higher borrowing costs

When a company gets money late from their customer, they must pay a higher interest rate to banks for borrowing their money. It can reduce the profit of a company significantly.

Lack of data analytics

Improper use of idle cash and increased cash buffers can result in a loss of opportunities in value creation. The cash collection team can only access cash for investment when they know how much money they have. Hence, the collection team must track the money flow to check for potential errors and maintain visibility during the transaction.

How does Cash Collection Automation Software help in the cash collection process?

Cash collection automation software can address all the problems that may arise during a cash collection process. Automation software offers the following benefits to an organization:

It enhances control over cash and working capital

Knowing your cash position and improving the cash collection process improves working capital. With the help of automation software, you can manage your working capital more effectively, which helps you get insight into what you need to make strategic investment decisions, like hiring new employees, purchasing capital equipment, and expanding your workplace. Improving your invoice collection process helps you invest in the right place to help you grow your business, and your organization still has more cash on hand after investment.

It shortens the sales to the payment cycle.

Generally, manufacturers or distributors need to pay for the cost of labor and inventory when producing or distributing a good or service. When a service organization invests in the raw material and resources to provide the service, they need to collect cash for their service and product as soon as possible. Automating software means you don’t have to worry about creating sales orders and invoices. It also sends the invoice to respective customers automatically. It also allows your customer to pay you via various modes, including credit cards, ACH, and more.

It lower bad debt risk

Many banks suffer losses from bad debts because the organization knows the customer will not pay them. It happens because the cash collection team cannot collect cash at regular intervals. Several other reasons also lead to delays in Loan collections. Collecting software can help the collection team to stick with a definite schedule of collection tasks and generate daily tasks for employees to keep up with workflow. It helps collect debt more quickly and reduces the risk of bad debt.

It improves your cash position

Knowing how many bills you must pay helps you understand your cash position. Pay your due bills to avoid owing more money than you are taking in. It would help if you focused on utilizing the best cash collection practice, reminding your customer to pay, providing customers with easy ways to pay you, and identifying invoices earlier in the process. Some automation software comes with a statistical cash forecast based on your customers’ payment history. It helps you know whom and where to receive cash soon.

It improves customer communication

Communication with your customer is an important part of the business. Cash collection automation software makes it easier for you to communicate with your customers. It allows you to review the necessary information about the customer, like account information. It also helps you create emails, attach invoices, log phone calls, and create mail merge documents. Automation software stores every communication with customers for future review and analysis.

It makes the cash collection process efficient

The cash collection process is time-consuming and inefficient because it is performed manually. The account managing team has to call each customer required to pay their company. Other factors also affect how much time you need to resolve issues with your payments. Companies using automated cash collection software can organize and automate mundane tasks. It helps reduce time spent on managing disputes, prioritizing, and preparing fo4 calls. It provides more time for your team to solve customers’ payment issues.

It minimizes administration costs

Automation software is designed to automate every activity that shouldn’t require human intervention. In the banking industry, organizations have to generate task lists for employees which requires a workforce. However, automation software can save banks from paying high administration costs by shrinking the size of the cash collection department. The collection software automates most of the process, which increases efficiency and minimizes the company’s administrative costs.

It improves customer service and satisfaction.

Sending an invoice early to your customer helps them pay you on time. However, it is common for companies to face problems with their customer invoice, such as missing or incorrect purchase orders. Resolving the issue with your customer invoice as soon as possible help provide your customers satisfaction. An automated cash collection software can automate invoice delivery to customers and alert you to problems with invoices and offer practical solutions. It helps you serve your customer better with fast and improved service.

In Conclusion

A smooth cash flow is essential for any organization. You must get paid on time to avoid a situation where you owe more than you are taking it. Slow speed, human error, lack of data analytics, and inefficient payment methods are common problems that a cash collection team face. Fortunately, automation software is a perfect solution that can address all the issues of cash collection and save you from getting into trouble.

MIMOIQ offers excellent cash collection solutions and helps organizations collect money faster, reduce bad debt write-offs, increase the economy, and maintain good customer relationships. You can choose from multiple cash collection models that suit your business needs.

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