3. WHAT IS THE PURPOSE OF A
COLLECTIONS / CREDIT CONTROL TEAM..?
Manage Money
In and Out of the
Organisation
Maximise Cash
Flow
Deal with
Payment Queries
Reconcile
Financial
LedgersPursue Debtors
Enforce Terms of
Business
Facilitate Default
Strategies
Govern Legal
Proceedings / Instruct
Solicitors
Predict Payment
Failure
Complete Credit
Checks
Issue Account
Statements /
Invoices Raise Credit /
Debit Notes
Write Off Debt
Liaise with
Creditors and
DCA’s
4. CORPORATE PURPOSE VS CUSTOMER
PURPOSE…
CORPORATE
Govern Legal Proceedings
/ Instruct Solicitors
Manage Money In
and Out of the
Organisation
Maximise Cash
Flow
Deal with Payment
Queries
Reconcile Financial
Ledgers
Pursue Debtors
Enforce Terms of
Business
Facilitate Default
Strategies Predict Payment
Failure
Complete Credit
Checks
Issue Account
Statements /
Invoices
Raise Credit /
Debit Notes
Write Off Debt
Liaise with
Creditors and
DCA’s
CUSTOMER
Make it easy for
me to pay…
Get my bill /
invoice /
statement right…
5. MEASURING SUCCESS…
Days Sales
Outstanding (DSO)
Overdue Debt (£/#)
Average Credit
Terms
Aged Debt
(>x mths)
Overdue vs
Outstanding
Overdue vs
Collectable
Debiting Accuracy
Unallocated /
Unapplied Cash
Call Answer Rates
Average Handling
Time
DCA / Legal
Recoveries
Query Volumes
Instalment Income
6. TARGETS
TARGETS VS MEASURES…
Days Sales
Outstanding (DSO)
Overdue Debt (£/#)
Average Credit
Terms
Aged Debt
(>x mths)
Overdue vs
Outstanding Overdue vs
Collectable
Debiting Accuracy
Unallocated /
Unapplied Cash
Call Answer Rates
Average Handling
Time
DCA / Legal
Recoveries
Query Volumes
Instalment Income
MEASURES
Accuracy of Invoice
(# correct 1st time)
Due Items Paid
When Due
Complaints and
Expressions of
Dissatisfaction
Query Response
Failure Demand
Payment Problems
7. TARGETS VS MEASURES…
Days Sales
Outstanding (DSO)
Overdue Debt (£/#)
Average Credit
Terms
Aged Debt
(>x mths)
Overdue vs
Outstanding Overdue vs
Collectable
Debiting Accuracy
Unallocated /
Unapplied Cash
Call Answer Rates
Average Handling
Time
DCA / Legal
Recoveries
Query Volumes
Instalment Income
Accuracy of Invoice
(# correct 1st time)
Due Items Paid
When Due
Complaints and
Expressions of
Dissatisfaction
Query Response
Failure Demand
Payment Problems
TARGETS MEASURES
Targets drive
complacency when
near or at target level,
they don’t encourage
continuous
improvement
Measures cause us
think about the
customer,
understand reasons
for non-payment and
where to act
8. PUTTING IT INTO PRACTICE…
Then… Now…
DSO Items Paid in Due Month
Query Volumes Query Type / Resolution
Overdue vs Outstanding Statement Accuracy
Aged Debt (£) Aged Debt (#)
Unallocated Cash Failure Demand
Unapplied Cash Average Cash Unmatched
45% Reduction in
Overdue Debt
Value
41% Reduction in
Overdue Debt %
82% Reduction in
Debt Value >12 MthsOn Average 90%
Paid in Due Month
67% Reduction in
Overdue Debt
Volume
84% Reduction in Debt
Volume >12 Mths
10% Uplift in
Customer
Satisfaction
87% Reduciton in
Unmatched Cash
10% Reduction in
DSO
