Financial AR Management

Recovery Solution Group Overview

Multiple options are available to suit every situation, as our programs are fully customizable. We can design and implement a viable, cost-effective program that will address all needs, regardless of the portfolio’s size, age, or condition.

Purpose

Reduce your company's Days Sales Outstanding (DSO), thus increasing cash flow while decreasing the costs associated with the recovery process. Maintain the good will and patronage of your customers. Assist in identifying reasons for non-payment. Re-establish communications and assist with the reconciliation of previously undefined accounts.  Modify and rehabilitate your customer's payment habits to better adhere to their established credit terms.

Expected Results

Simply put, recover more money, in a shorter period of time, for less cost to your company, without alienating or eroding your customer base.

Recovery Project Options

  • 1st Party Outsourcing
  • Audit Approach 3rd Party Outsourcing
  • Cash Management Analysis
  • Multi-Tiered Accounting Options
  • Educational Training for Staff
  • Flexible Contingent & Fixed Fee Rate Options
Accounts Receivable Management Strategies
Strategy 1  (1st party, Full AR Management)
  • Address complete accounts receivable inventory
  • Multiple cash application and payment processing options are available
  • 1st party contact on all accounts until 90 days
  • Continuous program with gradual reduction of inventory and costs
  • 90+ day accounts receive 1st party pre-collection letter on the 1st day of the month
  •  If there is no response by the 10th of the month, it will result in escalation to 3rd party Audit approach in the name of RSG
  • If there is no payment before the client’s designed time frame, the account will move to 3rd party collections (i.e., 120- 150 days, 20% contingent collection fee rate)
  • Fee rates vary from a contingency rate of 3%-10% or a negotiated fixed monthly fee rate
  • Projected total liquidation rate of 90%-96%
Strategy 2   (1st party, 30/60 day AR Management)
  • Address 30/60+ day accounts receivable inventory
  •  Multiple cash application and payment processing options are available
  • 1st party contact on all accounts until 90 days
  • 12-36 month program
  •  90+ day accounts are the same as Strategy 1
  • Fee rates vary from a contingency rate of 5%-12% or a negotiated fixed monthly fee rate
  • Projected total liquidation rate of 85-90%
Strategy 3   (3rd party, 60/90/120 day Audit Approach)
  • Address 60/90/120+ day accounts receivable inventory, in the name of RSG
  • Multiple cash application and payment processing options are available
  • 3rd party contact on all accounts until 120 days
  • 12-36 month program
  • Audit approach until 150 days
  • 150+ day accounts receive a pre-collection letter on the 1st day of the month
  • If there is no response by the 10th of the month, it will result in escalation to 3rd party Audit approach in the name of RSG
  • If there is no payment before the client’s designed time frame, the account will move to 3rd party collections (25% contingent collection fee rate)
  • Fee rates vary from a contingency rate of 8%-18% or a negotiated fixed monthly fee rate
  • Projected total liquidation rate of 70-85%

Programs are fully customizable and negotiable. Liquidation percentages and fee rates are merely estimates based on historical data. Call today for an accurate fee rate and liquidation rate quote based on the individual merits of your portfolio.

 

Have any questions? Call us today!

302-241-0686

Brochure

You can download our brochure if you want to enhance your recovery or know more about the company, rates, experience, strategies, etc.