Most successful businesses got that way by looking for efficiencies that save them money while providing better service for clients. Something that works across just about every industry is partnering with a third party receivables company.
When competition heats up, organizations have a rough time with growth. Look at the healthcare industry – small family practices and specialty services compete with other practices to stay on top of the latest technology. They also battle insurance companies that decide how reimbursements are applied.
Many practices struggle with their accounts receivable management because of the late payments that come in from insurance companies. It’s practices like these that benefit the most by partnering with a third party receivables expert. It’s a cost-effective option that is becoming increasingly popular.
What makes partnering with a company that handles third party receivables a good choice is that there are no up front costs. Outsourcing the collection of receivables allows companies in any industry to sell their receivables, even if they’re overdue, to a professional third party. These third parties are experts at what they do and have a much easier time collecting than most in-house collection attempts because they have the right training, technology and experience.
Instead of struggling with accounts that are delinquent, and instead of writing them off as a loss, companies have an alternative and that’s to sell their receivables for a fee. This not only gets the company paid immediately, it also takes away the responsibility employees have in regards to billing and collecting. Now, those employees can focus on business growth rather than chasing down debt
Companies that partner with a third party receivable professional now have an influx of cash they can use to grow the business. For many small businesses, cash flow is the biggest obstacle. Most accounts take more than 50 days to settle, which is too long for many small businesses to pay their rent, utilities and payroll on time. With the immediate influx of money through receivables professionals, the cash flow issue becomes a non-issue.
Another aspect to consider is the amount of complex rules and regulations involved with billing and collecting debt. The laws and statutes can be quite tricky and errors are easy to make. Failing to comply with the rules, especially when dealing with debt can set a company way back as the fines can become fairly hefty. When outsourcing to a professional organization, often times stacked with people with knowledge of the statutes in each of the 50 states, there is little to no risk.
When considering third party receivables organizations, it’s wise to consider a firm that is licensed and bonded in every state. This way, no debtor will be out of reach.
Omega RMS, llc., is a company with more than 40 years of experience as a third party receivables purchasing and collections. The team at Omega knows that communicating with the clients of their clients in an ethical and professional manner is one of the most important aspects of their jobs and they are committed to keeping those high standards.