Managing Accounts Receivables Efficiently

My friend, Henry, who runs an export business, told me that this new year, he is making some changes to his company. One of them is engaging

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Collection Agencies to manage his accounts receivables.

According to Henry, these two years have been so bad for his business associates that they have dragged their feet on payment. Of course he understands that they are not doing it on purpose and have given them a lot of time to settle their payments. However, it is simply taking up too much time just to manage these accounts that he felt that it is no longer efficient for him to do so and would rather pass the job to companies that are doing this professionally.

I think this is a wise move, of course, since there are collection agencies that only charge a flat rate for their work as opposed to percentage-wise, which could take a chunk out of the money recovered!

Henry told me that with a big chunk of workload off his shoulders, he could better use the time and energy to focus on expanding his business to a wider international market instead of worrying over past due accounts. That could be pretty time consuming, if you have experienced it before!

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