The automated collections process refers to the business method of recording information through the use of collection software. This process improves performance because it is a reengineered collection process that is not hindered by inefficient manual practices. The automated collections process decreases the time and energy needed to input, edit, and search for information, and it presents the information quickly and professionally.
Another benefit of the automated collections process includes improved business performance. Businesses that use collection software generally see a ten to twenty percent increase in their daily sales outstanding (DOS). Continued use of the automated collections process also helps businesses perfect their collections processes and policies. A business’s productivity and income rapidly increase with extended use of collection software.
While the benefits of an automated collections process easily outshine the benefits of a manual system, most credit functions still depend on a tangled web of computerized receivables and a manual collection process. Computerized receivables software generally includes all the tasks necessary to complete accounts receivables transactions, but does not extend to include the collections process. Instead of using an automated collections process to combine these tasks, many companies have only developed a system that incorporates automatic and manual procedures, creating a multitude of clerical functions that consume time and impedes productivity.
An alternative consolidating loan is a personal loan used to pay off an individual’s debts usually with one monthly payment. This loan is typically used by a business owner with a massive amount of debt and used as an alternative to declaring bankruptcy. The loan can be obtained from financial institutions, family, or friends. Funding for consolidating loans can also be obtained through pawnshops, life insurance, and retirement accounts. Payments are spread out over an extended length of time, which results in an individual paying more interest in exchange for a smaller debt payment. The monthly payment is calculated in accordance with the lowest payment accepted by an individual’s creditors. An alternative consolidating loan puts an individual’s personal assets at risk because the loan is a secured debt.
An alternative consolidating loan does have some benefits. Besides combing debt into one lower monthly payment, it also can save an individual’s credit and help a business owner find a better interest rates and terms. There is also the option of refinancing existing alternative consolidating loans with lower interest rates and smaller payments. Once an individual secures an alternative consolidating loan, it is advised not to buy other items on credit.
It is up to the individual to analyze his or her financial situation to decide which debt alternative provides the best solution. Because there are so many different alternative consolidating loans available, it is vital to choose one that will not result in greater debt. Choosing one of these types of loans ensures that an individual will pay back over one hundred percent of his or her debt in interest.