Government: Don’t Ignore Your Older Accounts Receivable
Most government offices have only a single-tier debt placement strategy with multiple primary agencies. However, after the initial collection period (about 180 days), collection agencies typically slow down their efforts due to the cost involved in pursuing less collectible, older government accounts. This natural decline in work effort means that, as accounts age, they become less likely to produce a payment. Those accounts can stagnate and become a drag on your portfolio by remaining with your agency for several years, going largely unworked after 180 days. The question remains: How can your office increase recoveries on these now-dormant older government accounts?
Government offices require an accounts receivable management solution on inactive inventory. With the right strategy, this treatment can produce a significant gain in revenue by applying a clean-up treatment strategy that revives your inactive accounts. A debt collection partner that employs special analytical modeling and a segmentation process to determine the best course of action can maximize the results on older debts that might otherwise remain uncollected.
IC System employs some of the most advanced analytical modeling in the accounts receivable management industry. Additionally, our efforts are supported by our Credit Monitoring feature, which effectively monitors dormant accounts until they show a probable ability to pay. IC System’s Credit Monitoring program places accounts with a qualified industry credit partner to monitor for positive changes in the responsible party’s credit file. By carefully monitoring the credit attributes of your consumers, IC System acts immediately when a positive change in credit activity signals a potential ability to pay. IC System leverages these triggered notifications to ensure your account is the first on the consumer’s list to pay.
IC System has collected millions in client revenue by watching for signs of credit activity with our treatment for aging unpaid accounts and Credit Monitoring services. By using IC System’s aging inventory solution, government offices will benefit from our unique approach and recover a neglected portion of their collectible inventory. Our debt collection programs adjust to your needs, while also delivering the performance and security you expect. Check out our government collection offerings to find out more.
About the Author: Ben Fisher
Ben Fisher has been with IC System, one of the largest receivables management companies in the United States, since 2013. He has honed his extensive industry knowledge through his varied roles for the company within departments such as operations, client service, and marketing.