Debt Chasing System
Scenario
Your debts are stored in an accounting system (e.g. Sage) but you want a process driven (but easy to use) way to chase debts.
Solution
Wrap debt chasing system round the accounts data. The status/age of the debt in the accounts system will highlight whether it needs chasing. Then a multi stage process can be set up so that calls are made and the results are logged. Standard letters can be generated to speed up the administration task. Items will disappear from the system when the debt is marked paid in the accounts system.
Simple
- User views debts as a list on an intranet, web or desktop based application.
- The stage/age of the debt is clearly identified, the history visible and the required action stated.
Practical
- A well defined, easy to follow process increases the chance that the debt will be collected.
Bottom line
- Debt management is an effective way to mange cash flow. It can remove the need for false solutions like factoring.