Too many times, an invoice due in 30 days goes delinquent to 45, 60, and sometimes even 90 days. The issue isn't the quality of work performed or even a questionable detail on the invoice; its more the matter of ABC company not wanting to pay the invoice on time.
Past-due debt puts small businesses in danger by stalling cashflow. Each year 82% of the companies forced to close their doors cite cash flow as the main reason. With more robust analytics and the right workflow, a business can collect more of the cash they are owed and improve their chance of long-term success.
So, what do you do when an invoice goes delinquent?
CollBox is an app that provides debt collection at the push of a button and seamlessly integrates with QuickBooks, Xero, Sage, and FreshBooks. By offering two different collection solutions, assist, and collections, any company can use CollBox to assess and monitor their A/R health. CollBox is perfect for those who don’t have time or want to deal with the collections' headaches.
How CollBox Assist works
• 1-90 days, softer touch
• Weekly follow ups
• Email, phone call on behalf of clients (not collection agency)
• $250/month for 5 AR clients
How CollBox Collections works
• Contingency based fee
• You identify the invoices you want to collect on
• Contacts clients as a collection agency
• Ideal for 90+ day A/R
You can enter specific information into the platform about your customers you want to send to collections, like business or individual, industry, how hard or soft you would like the collections to be, and if you are willing to accept less than the total amount due.
Some business categories that have been a great fit are professional service providers, commercial real estate companies, administrators, or insurance recipients as a funding source.
CollBox is one of our “tools” that we suggest to clients who are struggling with collecting debt. If you want to learn more about the platform or think it might be right for you, reach out to your Basis 365 team member or if you need a team member fill out our contact form for assistance today.