Debt collections software is an effective way of automating and streamlining the collections process, simultaneously harvesting information that can be used to optimize your business’ collections strategy.
Whether at a center of a debt collection agency or as part of an accounts receivable office, quality software can speed up the collections process while properly coordinating all data and records to get the job done correctly—the first time.
How do you choose the right debt collection software, though? What should go into this decision?
The needs of your business.
When selecting a collection platform, keep in mind the needs of your business along with the future state of where you want your business to be. Additional features sound great but can add extra expenses without adding real value, and the increased complexity might make the system more difficult to operate.
Consider the goals and actual needs of the software for your business. What about hosting preferences or service model? How about the software’s capability and system of record function? Is there easy third-party integration or self-service? Other things to consider when choosing the right debt collections software is the software’s data integrity and security, client reporting abilities, consumer access, and client updates.
TEC Services Group believes all of these facets should factor in when it comes to selecting your package. The right debt collections software will provide agents with the ability to focus more on collecting debts, as opposed to spending time on non-revenue producing activities. A few clicks in a program may save hours of unnecessary paperwork, for example.
Do an audit of key performance ratios, such as average days delinquent and accounts receivable turnover ratio, and determine the strengths and weaknesses of your organization to figure out which features would help the most.
How and who will be using the software?
Consider how heavily the software will be used, as well as the skill base of your employees using the program. Those who are less familiar with debt collection might want a simpler, easily understood program.
For example, in an accounts receivable office where debt collection is only one part of the job, a simpler version of the software with the basic functions and tools may be enough. However, at a debt collection agency, you might need a much more comprehensive software package to cover all of the various requirements of the day-to-day functions of your team.
About critical functions.
Keep in mind critical functions such as efficient tracking, accurate reporting, and time management. A good system presents data in a useful manner that can be understood simply. You should seek a software package that has the ability to coordinate and update information from various files simultaneously and simply so that the necessary information can be presented immediately.
Technical support can be important, too.
Solid technical support is also important, especially if you have a small business with limited or no information technology (IT) staff. Don’t neglect the importance of IT here—if you have software that needs to be upgraded or new users that need to be implemented into the system, proper technical support will make the process much easier.
It also is worth considering hosted systems, where the software is managed online for a monthly cost, versus in-house systems that require upkeep. If you’re seeking a maintenance-free option with no updates to purchase ever or have limited IT specialists, software with adequate technical support will be very beneficial. On the contrary, if you like maintaining ownership and control over your systems, it’d be best to steer clear of hosted options.
Last but not least: cost.
Find the balance behind cost-prohibitive and affordable debt collection software. Keep in mind that even if a software package is cheap, it doesn’t mean it’ll work well. On the contrary, think twice before paying a premium for programs with fancy features that may never be used.
So, it creates holes when not serving customers correctly by using the wrong debt collection software for your business. From regulatory breaches and fines, there is a risk that comes from a lack of real-time support. Having the wrong system can inhibit a client’s growth and ability to properly manage their customers in an efficient and effective way.
At TEC Services Group, we offer affordable and functional debt collection software and support services that fit your business best. Are you looking to increase your collections rate, upgrade your current software, or need consulting services? Contact us to learn how we can help provide you with the right solution with our trusted, valued, and respected team of industry experts. Call: (941) 375-0300.