Debt Info

Putting the muscle back into your Business Receivables Management

October 5, 2023

If your team is still doing proverbial mental push-ups to control credit – chances are they are working up an unnecessary sweat. The tools and technologies connected with Accounts Receivables Management are powered by our unique software – and while a Business Process Outsourcing (BPO) team needs to be skilled in the intricate art of customer relationships and interaction – the process itself needs to be tech-driven, streamlined and professional in any high volume environment.

Receivables Management in 2018 is measured, automated, analysed and dynamically managed. “We find that Finance Directors, CFO’s and executives who oversee credit management with a strategic eye are increasingly looking at best practice solutions for ever present credit control issues,” says Russell Milella, Head of Nimble’s BPO. Organisational leaders want a handle on how credit controllers are talking to their customers; confidence that credit policies, terms and conditions are being consistently applied, and assurance that the credit team is working on the receivables accounts that are strategically most important to their businesses.

Talking numbers
“We work in a numbers based environment and the statistics from businesses that use Receivables Management software to automate somewhat mundane tasks reflect a far more strategic outcome – with clear improvement on all levels,” says Milella. According to US-based research and advisory firm, Paystream Advisors, businesses that use sophisticated Receivables Management software report:

  • reduced time spent prioritising and preparing for calls from 15% to 6%
  • increased time spent soliciting customers for payment from 20% to 62%
  • reduced time spent managing disputes from 40% to 13%

“CFO’s are routinely faced with a lack of tools. Typically they only have traditional accounting systems to manage their receivables. The classic trap is that accounting systems only record the history and do little to help plan the future workflows or manage the staff involved in the process. When one’s dealing in a high volume environment, adding more people to an underperforming debtors book usually only compounds the problem ” says Milella.

As a BPO provider, Nimble has tailored its outsourced service to suit its clients. “Outsourced doesn’t necessarily mean moving your credit control department out – we understand that some financial managers prefer to keep Receivables Management in-house and for this reason our Nimble Outsourced resources will work on-site as part of the company team,” Miella explains. “We also have our own professional Johannesburg-based operations centre where a dedicated team represents your business as if they were one of your own. We can act as a non-disclosed third-party solution – and due to the voice analytics and software that records and analyses every conversation – our BPO staff are highly trained to represent and respect your brand. The software captures 100% reality – there is never any mystery about what happened on a call and no leeway for misrepresentation.

The bottom line
Do you are still wonder if there’s a chance that your credit controllers could be working with the more comfortable customers rather than the more “difficult” customers? Or that the sales team influence results in some accounts being allowed more latitude than others? If there’s a chance that preferential treatment for some of your customers has crept in or that queries and disputes are not being resolved optimally – then there’s no need to lose any more sleep over it. The answer lies in tools and technologies to tackle these issues and to solve these challenges! The bottom line is that your book is the bottom line!

Advantages of strong Receivables Management shorten the order-to-cash cycle to reduce costs

  • Once the accounting system has created a sales order and invoice; accounts receivable software takes over – automatically sending to customers soon after they’ve been created.
  • The saving chain: paper, toner, envelopes, postage, and lost time.

Prioritise and direct work

  • Once the monthly call cycle starts, Receivables Management software is able to direct, through work flow management tools, which accounts require priority calling and which accounts can wait until later in the cycle.
  • Instead of controllers choosing which accounts they are comfortable working with, the system will “push” the accounts to be worked on.
  • Having touched these accounts, the system automates follow ups and reminders using automated emails and SMS’.

Quality control

  • Recording calls should be standard with current Receivables Management software; and is particularly important to ensure full compliance with the businesses policies and procedures.
  • Computer based quality assurance techniques give us 100% coverage of all customer engagements. The days of random sampling are well behind us.
  • A new development brings enhancements to the recordings. This allows for pre-emptive interrogation of calls to ensure that the correct “phrases” and words are being used to maintain the right relationship with clients, as well as to ensure that the correct process and work flows are being applied.

Managing credit risk
Information sourced from credit bureaus is helpful for new customers, and to monitor existing customer relationships. It is used to create customised credit scoring formulas; to segment customers by risk level; and to set up alerts such as excessive broken promises, disputes, or clients taking longer to pay their bills. Bespoke systems allow us to injest and use multiple sources of data.

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St Agnes Primary School

St Agnes is a public school situated in Woodstock, Cape Town.

Nimble Group actively supports St Agnes Primary School through the Partners for Possibility programme. We dedicate resources to a variety of initiatives aimed at creating an enhanced learning and recreational space, enriched student experience, and optimized day-to-day running of school operations.

Computer room upgrade Our dedicated team of IT technicians has upgraded the school’s IT hardware and software, creating a more user-friendly and modern environment for students and teachers using the computer room daily.

Playground painting and revitalization
Our enthusiastic volunteers devoted their time to painting vibrant murals and interactive games on the walls and paved areas of the playground.

Enriched student experience
Nimble strives to continuously improve the student experience by celebrating academic excellence, sponsoring prize-giving events, and more.

Day-to-day operational support
We also contribute to the school’s operational efficiency by offering administrative support and providing access to Nimble’s HR and Finance functions.

Peak Child

Nimble Group has taken the initiative to establish an Early Childhood Development Centre, which began operating in January 2019 in Woodstock, Cape Town. The centre operates under the guidance of Peak child, and while accessible to the public, primarily serves as a subsidized preschool for the children of Nimble staff.

Peak Child aims to equip children with the best possible foundation for life by providing affordable, high-quality preschools in close proximity to workplaces, catering to the needs of emerging middle-class parents. Since its inception, Peak Child has focused on collaborating with socially responsible employers to support their staff beyond conventional employee benefits.

Peak Child offers comprehensive programmes for children aged 3 months to 5 years. Through partnerships with prominent educational experts and local primary schools they ensure that children transitioning from Peak Child are socially, academically, and physically prepared for admission to any of Cape Town’s leading primary schools. Peak Child currently operates three schools, including Peak Child Nimble.

Nimble has made a significant investment in this project, with plans to replicate this model close to its Johannesburg offices.

Altius et Latius Trust

The Altius Et Latius Trust is a school education initiative aimed at providing bursaries to historically disadvantaged students, enabling their attendance at top schools in Cape Town.

The primary goal of the trust is to promote equitable access to high-quality public education, fostering lasting transformation. Their objective is to support fifty talented learners in gaining admission to high-performing schools.

Nimble Group continually makes a substantial impact on this crucial initiative by providing essential resources for additional student support, such as tutoring, funding for school events or excursions, sporting equipment and more.