FinanceOps: Autonomous Back Office Finance Function

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Increasing Collection Effectiveness and Reducing OPEX For a MicroFinance Business with FinanceOps

Increasing Collection Effectiveness and Reducing OPEX For a MicroFinance Business with FinanceOps

Geography: Mexico Industry: MicroFinance Solution: Genesis One—Autonomous Financial Operations Platform A microfinance company in Mexico had a massive volume of delinquent accounts with smaller ticket sizes, making it impractical to hire collection agents. They were looking for a platform to automate their collection process and maintain consistent two-way communication

FinanceOps vs Traditional Collection Methods: Everything You Need to Know

FinanceOps vs Traditional Collection Methods: Everything You Need to Know

Despite technological advances across departments, many businesses still rely heavily on traditional, manual approaches to debt collection. This reliance creates inefficiencies, with reports showing that, on average, companies spend up to 30% of their operational time managing overdue accounts. The manual approach isn't just time-consuming; it's

Collection Dispute Letter: How Do You Write It—Steps and Examples

Collection Dispute Letter: How Do You Write It—Steps and Examples

Let’s say one day you are checking your credit reports and find an outstanding balance on a closed account, a debt you’re certain was paid off years ago. Without intervention, this error could negatively impact your credit rating and even affect future financial opportunities. According to Forbes, about

10 Reasons Why Alice Is the Best Choice for Automating Debt Collections

10 Reasons Why Alice Is the Best Choice for Automating Debt Collections

Debt collections can be tricky, especially in an economy where people are living one paycheck to another, changing jobs frequently, and are least concerned about their credit history in case of defaults. In 2024, total household debt has risen to $17.80 trillion in the United States. These loans include

What Are Delinquent Accounts: Strategies That Will Help You Take Control

What Are Delinquent Accounts: Strategies That Will Help You Take Control

Imagine a small business that sells handcrafted furniture. Initially, everything seems to be going well, with customers eagerly purchasing products on credit. However, as the months go by, many of these customers start missing payments. What was once a thriving cash flow begins to dwindle, leading to cash shortages that

What is Dunning in Accounts Receivable: Example and Best Practices

What is Dunning in Accounts Receivable: Example and Best Practices

The term ‘dunning’ originated in the 17th century, referring to persistent requests for payment, while today, it has evolved into a series of automated or manual follow-ups, including letters, emails, and phone calls. An effective dunning process helps recover unpaid debts and preserves customer relationships when handled with professionalism and

The ROI of Switching to Genesis One For Collections: How Much Can Your Business Save?

The ROI of Switching to Genesis One For Collections: How Much Can Your Business Save?

Depending on the size and complexity of your operations, businesses can save anywhere from $500,000 to $1,000,000 or more annually by switching to Genesis One, which is at least a 6-10x return on investment.

Turning Bad Debt Into Revenue with Genesis One

Turning Bad Debt Into Revenue with Genesis One

A prominent financial services company in the U.S. was struggling with millions of dollars in bad debt from accounts that were more than 500 days past due. The company had written off these debts, believing that the chances of recovering payments were slim and that pursuing them would be

Accounts Receivable Factoring: What, How, Benefits, and More examples

Accounts Receivable Factoring: What, How, Benefits, and More examples

Are you tired of waiting for clients to pay their invoices, leaving you strapped for cash and unable to meet your financial obligations? If so, you are not alone. Many businesses, especially small and medium-sized enterprises, encounter these problems, leading to stress and potential disruptions in growth and accounts receivable

Dispute Management: Definition, Types & How to Handle Them

Dispute Management: Definition, Types & How to Handle Them

Effective handling of customer disputes is an important aspect for every business. A pro-customer approach helps build trust and credibility while helping maintain a loyal customer base. A survey shows that 84% of business and finance leaders consider customer experience to be important in accounts receivable. However, dispute management can

What Is Skip Tracing in Debt Collection?

What Is Skip Tracing in Debt Collection?

Let's say a debt collector is trying to contact a debtor who has vanished without leaving a trace—no updated address, no phone number, nothing. With billions of dollars in outstanding debt across industries, this scenario is more common than you'd think. In today’s fast-paced

Why Does an Empathic Approach to Collections Yield Better Results?

Why Does an Empathic Approach to Collections Yield Better Results?

Economic uncertainty in the United States has created numerous challenges for both businesses and consumers. There is a major cash shortage as businesses find it difficult to extend credit and collect payments while consumers are living paycheck to paycheck. One day, a person might be doing exceptionally well with a

10 Common FDCPA Violations to Avoid in Debt Collections

10 Common FDCPA Violations to Avoid in Debt Collections

The Fair Debt Collection Practices Act (FDCPA) in the United States has mandated several rules that protect individuals from abusive, deceptive, and unfair debt collection practices. This makes it tricky for debt collection agencies to recoup cash from delinquent accounts while also abiding by these rules. Data shows that in

US Federal Reserve Interest Rates Cut: What Might It Mean for Your Business?

US Federal Reserve Interest Rates Cut: What Might It Mean for Your Business?

The U.S. Federal Reserve's decision to cut interest rates by 50 basis points can have a profound impact on businesses of all sizes, particularly small and medium-sized businesses (SMBs). This is because they often end up paying 2-3% higher interest rates on loans compared to larger corporations.

Allowance for Doubtful Accounts: Explanation and Calculation

Allowance for Doubtful Accounts: Explanation and Calculation

When businesses extend credit to their customers, it’s with the hope that invoices will be paid in full and on time. However, reality often paints a different picture. According to an Atradius report, 1 in 11 invoices in the U.S. are never paid for, and it found that

The Gig Economy Conundrum and Its Impact on SMEs in the US

The Gig Economy Conundrum and Its Impact on SMEs in the US

The gig economy has experienced a meteoric rise in the United States, with an estimated 58 million Americans—roughly 36% of the workforce—engaged in freelance or contract work as of 2022. This shift is transforming the business landscape, particularly for small and medium-sized enterprises (SMEs), which now find themselves

60+ Strategies to Improve Your Debt Collection Process

60+ Strategies to Improve Your Debt Collection Process

Maintaining a healthy cash flow is critical for growth and sustainability for businesses. Yet, for many companies, slow-paying clients and delinquent accounts disrupt the financial cycle. According to a report by Atradius, 55% of B2B invoices in the US are paid late, with 9% of all sales remaining uncollectible. This

Eliminating Delinquencies and Reducing Operational Costs by 80% with FinanceOps

Eliminating Delinquencies and Reducing Operational Costs by 80% with FinanceOps

A leading healthcare provider in the United States was facing high delinquency rates and increased collection costs, which adversely affected their bottom line. The organization became highly dependent on their collection agents taking on the brunt of manual work, reducing their overall productivity and increasing operational costs. As a result,

Maximizing Revenue: Effective Strategies for Small Bill Collection Follow-ups

Maximizing Revenue: Effective Strategies for Small Bill Collection Follow-ups

Surveys show that 40% of businesses make no attempt at all to follow up on unpaid invoices, and even those that do spend just two weeks every year doing so. It's even more surprising that 10% of all invoices are never paid for and written off as bad

What Is Accounts Receivable Turnover Ratio and How to Calculate It?

What Is Accounts Receivable Turnover Ratio and How to Calculate It?

Understanding the financial health of a business is crucial for its success, and one key metric that provides insight into a company's efficiency is the Accounts Receivable Turnover Ratio. It measures how effectively a company collects revenue from its credit sales, shedding light on its credit policies and

Days Sales Outstanding (DSO): Definition, Importance, Formula, and How to Calculate It

Days Sales Outstanding (DSO): Definition, Importance, Formula, and How to Calculate It

Most businesses operate on credit and often struggle to decide whether to tighten their credit policies to improve cash flow or extend more credit to increase business opportunities. However, there is a metric that can help businesses arrive at this decision sooner—DSO. In a time when the economy is

Accounts Receivable Days: Definition, Formula, and How to Calculate It?

Accounts Receivable Days: Definition, Formula, and How to Calculate It?

From the time a business makes a sale on credit, till they receive payment from the customer, the bill amount is held under Accounts Receivable on the balance sheet. The average number of days it takes for a business to collect this payment and convert their accounts receivable into cash

What are 5 Cs of Credit and How to Use them in 2024?

What are 5 Cs of Credit and How to Use them in 2024?

Offering credits is a critical strategy for many businesses aiming to drive growth and foster strong customer relationships. In the B2C sector, credit options can significantly increase sales by enabling consumers to make larger purchases or buy more frequently. This financial flexibility not only enhances customer satisfaction but also fosters

Is accounts receivable an asset or a liability?

Is accounts receivable an asset or a liability?

Accounts receivable is a crucial component of the balance sheet for any company that extends credit to its customers. From the moment a sale is made until the payment is received, the outstanding amount is recorded under accounts receivable on the balance sheet. This entry highlights the company's

Small Bills, Big Misses—Still Leaving Money on the Table?

Small Bills, Big Misses—Still Leaving Money on the Table?

39% of invoices are paid late in the US. When businesses witness such substantial payment delays, they switch their attention from trying to recover every outstanding receivable to larger accounts. As a result, the smaller ones, which are a significant portion of a business’s AR, get overlooked.