Collections Maturity Model: The A/R Leaders’ Guide to a World-Class ‘Proactive’ Collections Team

This e-book, with research on more than 500 receivables projects, concludes that credit and A/R leaders are more likely to positively impact A/R KPIs if they start with an assessment of their collections operation maturity on 5 key parameters -people, processes, data, collaboration, and technology.

The Collections Operations Maturity Model has been devised to help finance decision-makers perform an in-depth evaluation of their current operations and identify clear next steps to advance up the maturity pyramid.


Chapter 01

Executive Summary: Why Care?

Chapter 02

Why do companies need to re-engineer credit and collections processes?

Chapter 03

The 5 Pillars for Improving DSO

Chapter 04

Understanding the Collections Maturity Model

Chapter 05

Success Story: Dr. Pepper Snapple Group

Chapter 06


Chapter 07

About HighRadius
Chapter 01

Executive Summary: Why Care?

The financial health of a company, regardless of size or industry, depends on its ability to generate working capital. Therefore, the Credit & Collections teams must ensure that the cash from a sale is received within its payment terms to maintain a healthy DSO and meet the company’s obligations.

In Accounts Receivables, the Credit and Collections processes mostly work in silos. These processes are initiated after-a-fact or in response to a scenario like a credit review for a customer who has gone or is on the verge of bankruptcy or collections process after an account is due. Due to a lack of optimal interdepartmental and external collaboration and standardized processes, accounts receivable processing faces a lot of bottlenecks and end-to-end process errors.

Improving and optimizing accounts receivable processes brings many benefits to the table, which is not limited to A/R. A streamlined and efficient A/R process also positively impacts marketing, sales, customer service, and overall operations. This leaves finance leaders with little leeway of working with unoptimized processes in the credit-to-cash cycle.

All of these factors contribute towards the indispensability of an operations maturity model, a model that helps to analyze, align, distribute and execute A/R processes to meet the KPIs and keep the receivables of the company healthy.

This e-book provides a great deal of insight into why companies are investing in re-engineering their A/R processes to lower their DSO and the role of collections operations in it. It also explores the key pillars which define the efficiency of a collections process and how companies could leverage the Collections Maturity Model to gauge where they stand and advance in the right direction.



7 Essential Customer Segmentation factors for 150%…


Segmenting customers for Collections into buckets of strategic accounts and providing an insight…

18 min


Want zero bad debts? See how Yaskawa…


Most humans crave the zeroes when it comes to figures and calories. Wouldn’t…

4 mins


Healing Credit Health With Bad Debt


Bad Debt to Sales indicates the percentage of receivables which cannot be recovered…

4 min