12 Collection Strategies for Every Aging Bucket


Compilation of strategies used by top-performing collectors across 15 industries

Contents

Chapter 01

The Right Approach to Develop a Collections Strategy

Chapter 02

Developing an Effective Collections Strategy

Chapter 03

12 Collection Strategies for Every Aging Bucket

Chapter 04

Additional Notes

Chapter 05

About HighRadius
Chapter 01

The Right Approach to Develop a Collections Strategy


Introduction

One of the top priorities of CFOs and finance leaders across industries is working capital management. Accounts receivable teams aim to leverage their collection efforts to impact cash flow, mitigate credit risks, and reduce the cost of borrowing by lowering DSO, reducing the number of past due invoices, and eliminating write-offs.
In our experience with over 350+ B2B SME suppliers, a common observation has been that companies usually rely on their basic ERP functionalities and work with the golden rule of 80-20, thus leaving a big slice of their accounts receivable on the table. Therefore, the need of the hour is for organizations to develop collections strategies that increase the process effectiveness and help CFOs achieve their long-term objectives.

Developing the Right Approach

The right approach to developing a collection strategy begins by identifying the right objectives for your collections team. As an A/R manager, you need to ensure that your collections team has the following three goals:
Collection Strategies

While basic collection strategies and ERP functionalities could help you achieve the first two objectives, your AR team will end up wasting time and effort on the “wrong” customers, thereby increasing the cost of every collection effort.