There are many businesses out there that have trouble closing customer accounts. Some customers have a very hard time dealing with their accounts, and they might need financing that will help. You can look for financing that will aid your customers, and you might find that presenting these options to your customers makes their lives easier. Remember that this is a very simple thing for you to do, and you can improve your cash flow while closing these accounts, taking them off your desk, and offering you good customer service.
- How Does The Debtor Financing Program Work?
The debtor finance program is run by a financing firm that will help your customers when they need financing to close their accounts. The program will send you a check, and your customers will make payments to the financing company. You should look for a number of companies that offer this service, and you might allow your customers to go to any of these companies for financing.
- How Do Your Customers Get Care?
Customer care for your clients is offered through the financing company. The financing company will work with your clients in the way that you would prefer, and they will let you know what their script is for customer care. You can talk to the company about how they would offer programs to your clients, and you will establish a relationship with the financing firm that has them sending you money that is paid to them.
- You Get Instant Cash Flow
You get instant cash flow from the financing company because they pay you as soon as your customer has signed an agreement with them. You get the full payment the value of the account, and you can close that account for the customer. The customer makes all their payments to the financing company, and you do not need to deal with them again. You are not tasked with contacting the customer again, and you could avoid all contact by sending all delinquent accounts to the financing company’s website.
- You Can Cut A Deal With Each Customer
You are welcome to cut a deal with your clients on what they will pay to close their account. You can give customers a discount just to get any payment from them at all, and you might let the financing company cut deals so that they can bring in some money for you. You are given a report every week that explains how much money has come in, and the company will let you know if they are having issues with certain customers. This is not a collection agency, but you might be able to offer some perspective on how to deal with certain people.
- How Do You Market The Financing Program?
The debtor financing program is marketed through the company on their website, and they will advertise that they work with you. You can be their partner in this venture, and it helps both of get what you need. You can put ads for the financing company on your website, and you can have people click on those ads to get service instead of contacting you. You could create a page on your website that explains why your customers need to use these financing programs, and they will go to the financing website to do what needs to be done.
- When Do You Use Debtor Financing?
Debtor financing should be used when you do not have time to collect on your accounts. You have many accounts that you know have been past due for some time, and it would be foolish of you to try to collect on them by yourself. The financing company will send reports that summarize how much money you are making, and they will charge a small fee for this service. You are spending a small amount of money to get most of your money back, and you will save time in the office because you do not have time to ask anyone to close these accounts. Your company needs to have clean books at the end of the year, and you must work with the financing company, transfer your records, and let them take over when you are frustrated with the collections process.
There are several different companies that want to get their money back because customers have not paid their invoices. The invoices can be sent to the financing company when the customer takes out a loan to pay for their invoice, and the cash is sent immediately to your office. You generate cash flow, and you can close accounts that might have been lingering for a long time. You can report these accounts paid to the credit bureau, and you need to be sure that have tried debtor financing when you cannot act as a collections agent.