Companies are facing many issues with respect to debt and debt collection in recent times. Consumers, who are unable to pay for merchandise or services, often opt for some form of debt. This puts the onus on the businesses to collect the debts from the customers. As the economic crisis in the world continues, businesses have been facing many issues in collecting debt from customers. Collecting debts is not an easy task as it involves money and personnel. There is an alternative to the manual debt collection done by businesses. The alternative is the use of debt collection software, which simplifies the debt collection process. This software helps businesses or individuals to monitor the debts that they have to receive and will help to make the process of debt collecting a lot more uncomplicated.
Debt Collection Software
Debt Collection software is a computer program that businesses like law firms, debt collection agencies and other debt collection services use to streamline their process of debt collection. It also helps these businesses in maintaining proper documentation of the entire debt collection process. Debt collection software is not software that will collect debts for you. It is merely a software that will assist you to manage the debt collection process. Debt collection software will help debt collectors keep a track of the client accounts and other relevant information regarding the clients. There are different types of collection software available in the market and each of them will have some unique characteristics. It is therefore important to examine the characteristics of the software available in the market and select one that has features that will be beneficial to you.
Features in debt collection software
Collection software varies from one company to the other. However, there are a few features that can be seen in almost all debt collection software and they are
Client information: This feature allows businesses to create and manage client contact and personal information, which one can retrieve easily with the click of a button.
Document imaging: Using this option, debt collection agencies or businesses can scan and store important documents related to the customer and debt. These scanned documents will be easy to share and to retrieve when required.
Productivity tracking: This is an important feature found in collection software. This feature will provide data on the operation of a particular collection agency or an individual.
Interactive call systems: This popular feature is available in all debt collection software. This feature gives the user the option to contact the client over the phone by just clicking on a button. This feature can help save a lot of time and in some software, the option of recording the conversation is available.
Statement generation: By using this feature, the user will be able to generate statements for each of the clients.
Coupon generation: Coupons or reminders can be generated to let the client know that the payment due date is approaching.
Connectivity to credit agencies: Debt collection software generally has connectivity to the credit agencies. This feature sends information to the credit agencies regarding nonpayment of dues by a customer. This information can be used to alter the credit rating of the customer if the customer appropriately.
Matthew Anton is a financial analyst who has been studying the reasons for increase in debts and ways in which companies can improve debt collections using merchant account payment.