AW Holding
Maintaining a healthy cash flow is essential for businesses, and effective receivable solutions payment plays a crucial role by the accounts receivable solutions collection agency, provided by AW Egypt, offer a comprehensive approach to managing outstanding payments and recovering it.
The solution encompasses a range of services, from invoicing to payment reminders to more assertive early collection activities.
In this blog we will tell you how AW Egypt the accounts receivable management collection agency can help businesses enhance their overall financial health and position themselves for long-term success.
what is receivable solutions?
Receivable solutions refer to the strategies and methods used to manage and collect outstanding payments from customers. These solutions aim to improve cash flow, reduce bad debt, and enhance overall financial health.
AW Egypt: what is the accounts receivable recovery process?
The mission of accounts receivable solutions collection agency for any firm consists of two major parts:
The Accounting Part: Bookkeeping all transactions of accounts receivable and deferred sales made by the company during a specific period correctly and accurately.
The Collection Part: Is tracking and securing all the payments of these accounts receivable solutions to make sure they are collected or paid at the actual agreed time.
And here comes the role of the receivable solutions collection agency (AW Egypt), to maintain the cash flow running for the company without any disruption to meet all your financial obligations and minimize the risk of bad debts.
How do accounts receivable management companies work?
In AW Holding, our role as an accounts receivable solutions collection agency starts right after you make the sale with your client and send over the merchandise, then here we step in with the following actions:
Invoicing and Delivery:
Receivable recovery collection agency receives the invoices for the products sold and delivered by the client and after issuing the invoices we receive them from the client, calculating accounts receivable and deliver them to the customer who made the purchase and received the goods.
Informing Disputes:
Disputes are likely to occur when receiving orders, the customer may find that he did not receive the item he agreed upon, or received at all, it may be some missing or incorrect items, there were defects or damage to the products, or it could be a false dispute, so that upon disputes the customers (buyer) doesn’t want accept the invoices so we immediately raise flag to the client (seller) and send over back the disputes with all the concerns so the (seller) can solve it immediately, to ensure customer satisfaction invoices are correct for collection.
Sending Reminders:
After the invoices are being accepted from the customers, the receivables collection agency starts establishing a form of communication with the (buyers) to send a certain number of emails, conducting phone calls and field visits based on a designed timeline to ensure the payment delivery on time.
Payment Collections:
That the mainstream of accounts receivable services, when the agreed dates for collecting the payments from the customers (buyers) came, we collect through different methods, it could be in a form of bank transfer, cheques to be cash out or in cash, we work as the middleman in here collecting the full amount from (buyers) and deliver it to the (seller).
Reporting:
After delivering the money to the client of his sold goods, accounts receivable agency send also a detailed report for the actions that has been made during the early collection process, what we have achieved and the impact of our role on your business by decreasing the DSO (Days sales outstanding), and average day of collection before and after dealing with us, also we provide recommendations about the customers (buyers) based on data like receivable ageing and turn over, to help you decide to deal with them again or how to enhance the terms and condition of your business transactions with them.
3 Ways to improve your account receivable collections with AW Egypt:
Simplify payment options for Clients:
Sometimes the customer doesn’t mind immediate paying, but the obstacle here lies in the payment method itself.
For example, some clients want to pay in cash, but you prefer receive payments through bank transfer and vice versa, some clients could pay with a local currency what equals the foreign currency of the goods purchased faster, or even make the payment on an installment basis.
So, companies of accounts receivable collections solutions always tend to advise you to provide more flexibility with the payment options to ensure faster collection.
Early payment discount:
Accounts receivable management companies sometimes recommend offering an early payment discount after agreeing with the clients to motivate the early payments for clients.
For example, AR management collection agency can offer a specific percentage discount if the (buyer) pays the full amount 2 weeks earlier and so.
It depends on the industry, amount of sales and urgent need for cash based on every company.
Fast Follow Up:
Receivable age is a crucial aspect for collecting it, the longer the accounts receivable stay uncollected the higher the chances of not collecting could be.
So, maintaining regular time lined and fast follow ups raise your chances for collecting what you have already sold, and doing this activity needs manpower or integrated system which are heavy cost options than outsourcing an accounts receivable solutions collection agency.
Learn more about the best ways to recover unpaid invoice.
Why choose us?
- Develop a tailored invoice management process to suit your specific needs.
- Reduce late payments and bad debt.
- Decrease Days Sales Outstanding (DSO) to improve cash flow.
- Enhance client relationships while accelerating collections.
Provide comprehensive reports and data analysis for informed decision-making. - Operate seamlessly as an extension of your company to uphold business relationships.
In conclusion:
Accounts receivable services are the key to ensuring your business gets paid on time and efficiently. By partnering with AW Egypt, you can streamline your accounts receivable solutions and process and improve your cash flow.
With customizable accounts receivable services to fit your unique business needs, you can have peace of mind knowing that your receivables are in good hands.
FAQs
How to calculate accounts receivable days on hand?
To calculate accounts receivable days on hand, you first need to determine the average accounts receivable and the total credit sales over a specific period, typically a year. The formula is: (Average Accounts Receivable / Total Credit Sales) x 365. This calculation gives you the receivables days on hand, indicating how long it takes, on average, for a company to collect payment after a sale.
Can Accounts Receivable be collected?
Sure, accounts receivable considered as short term asset that can be converted into cash within 1 to 3 months and it’s easier to be collected than other form of debts like the bad debts that considered the hardest kind of debts to be collected.
What is the difference between Account Receivables and Accounts Payable?
accounts payable receivable are two major components in any firm working capital, calculating accounts receivable or receivables refers to the money that the company owe from customers for goods or services sold on credit, while accounts payable refers to the money that the company owe to other like suppliers and vendors for goods and services purchased on credit.
When do the accounts payable turn to receivables?
Accounts payable receivable, when accounts payable (debts owed to a company) turn into accounts receivable, it’s often a sign of a successful business transaction, such as a sale on credit. This process is called “aging” or “collection.” Made by a sales deal, as a vendor or supplier bought a service or a product on credit from you, their invoice, the payable is settled, and the company’s receivable increases.
What is global trade receivable finance?
Global trade receivable finance is a financial solution that allows businesses to manage their international trade transactions by using their outstanding invoices as collateral for funding. This form of financing helps companies improve cash flow, mitigate risks associated with foreign buyers, and enhance working capital. By leveraging global receivable solutions, businesses can access quick liquidity without waiting for payment from their customers, enabling them to invest in growth and maintain operational efficiency.
How do you manage collections in accounts receivable?
maintaining clear communication with clients is crucial; sending reminders and following up promptly can significantly improve collection rates. Establishing a structured process for invoicing and tracking outstanding payments helps identify delinquent accounts early on. In some cases, it may be beneficial to engage professional services such as an accounts receivable solutions collection agency to handle your business
what is allowed for faster collection of receivables؟
To collect receivables faster, it’s recommended to:
- Send invoices promptly and clearly.
- Communicate regularly and effectively.
- Offer incentives and discounts.
- Utilize automation and technology.
- Implement strong credit policies.
- Leverage customer relationship management.
- Consider legal action as a last resort.
when collection is made on accounts receivable?
Collection on accounts receivable occurs when a customer pays off an outstanding debt. This can happen through direct payment, payment plans, debt collection agencies, or legal action. The timing of collection depends on credit terms, customer behavior, and collection efforts.