Automation Debt Collection Risk Management
4 mins read

Making the debt collection process easier for wholesalers

The process of chasing up unpaid debts can feel like an intimidating task, particularly when you’re dealing with multiple products and transactions along an extensive supply chain. However, for businesses in the wholesale sector, it doesn’t have to be. It’s time to arm yourself with a highly-effective suite of debt collection tools that could save your business time and money and help you maintain smooth and even cash flow.  

How wholesalers can simplify the debt collection process  

The wholesale sector is one that involves a significant number of products and transactions. It’s no surprise that businesses in the industry may struggle to keep track of overdue invoices and face debt management problems. When these factors are paired with the unprecedented current supply chain delays, as well as rising inflation levels, it becomes apparent that wholesalers need to make the management of unpaid invoices, and the debt collection process, as streamlined as possible.  

This is especially true when you consider that wholesalers are often caught in the middle of a supply chain. While companies and transport businesses higher up the chain can negotiate costs, wholesalers and their partner entities may not have the same leverage, or the ability to predict which clients are at risk of late payment or default. Further, it’s also commonplace for some businesses within the wholesale sector to allow customers to purchase goods on credit. Even though the majority of customers will do the right thing, there’s always a margin of risk that the remaining customers will do whatever they can to avoid paying outstanding invoices.  

This is why your business needs access to comprehensive debt collection processes, to better ensure timely payments and maintain a consistent cash flow.  

Wholesaler employees simply do not have the time in their already-busy workloads to chase invoices. Following up on unpaid invoices is laborious and takes away from core business activities. It can also be downright frustrating, particularly when trying to maintain important business relationships. All the while, your suppliers need to be paid, so maintaining positive cash flow is paramount to your survival.  

A busy entity like your wholesale business does not want to waste precious resources chasing outstanding invoices, or outsourcing the process to costly legal firms or collections agencies. It’s time to simplify the debt collection process by considering making the switch to automated debt collection tools, such as those offered by CreditorWatch.  

Automated debt collection tools from CreditorWatch  

CreditorWatch offers wholesale businesses the tools they need to make the entire process of debt collection more streamlined and less time-consuming. Our automated debt collection tools are designed to help your business get paid faster, all while saving time spent manually chasing outstanding accounts. It does so in a few key ways: 

Seamless accounts integration – The last thing any business wants is to have to learn to use a whole new platform or software. This comprehensive debt management solution integrates seamlessly with MYOB and Xero, ensuring that late payments will not fall through the cracks. This can be especially useful for wholesalers managing extensive invoices and transactions.  

Identify risk indicators – As part of its integration into your accounts software, CreditorWatch’s debt management tools analyse your outstanding debtors, and identify any that may be at high risk of late payment or default. This empowers your wholesale business to make more informed decisions around which entities to speed up collections with, or even which potential trading partners to completely avoid.  

Branded templates to improve payment – You’ll be able to strengthen your invoice payment procedures through our debt collection letter templates. From welcome letters with payment terms, overdue notices, final notices, letters of demand, and 30, 60 and 90-day reminder notices; our templates cover every stage of the payment process. Using our logo on these templates has also been proven to increase the likelihood of receiving payment by 53 per cent.   

CreditorWatch then automates this process for you by sending invoices out with each delivery, or following up on late payments with reminders, so you can receive payment faster while maintaining professional relationships with clients.  

Lodge payment defaults – Another facet of the automated debt collection tools offered by CreditorWatch is the ability it gives SMEs to easily lodge payment defaults against customers – without the cost of engaging a collection agency. A payment default will stay on a company’s credit report for up to five years, and by lodging a payment default, debtors are typically more likely to pay your business faster to help clear this adverse event. Further, you can protect other businesses in the industry, as 91 per cent of our customers will not engage with an entity that has a default in its credit file, reducing their risk exposure to non-paying customers.  

In the current environment, wholesale business owners must be proactive about debt collection, as you cannot risk sitting around and waiting for payment to reach your account. By utilising CreditorWatch’s automated debt collection tools, you’ll not only increase your likelihood of payment from invoices to maintain cash flow; you’ll ditch the added operational load of following up on outstanding invoices.  

You’ll also gain access to personalised support from our expert customer service team at CreditorWatch. We’re available to answer any of your questions and walk alongside you to assist you in implementing your debtor risk management strategy. To book a free demo of CreditorWatch’s debt collection tools, and put your debt collection process on autopilot, please contact us today.   

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Business Development Specialist | Credit management and Collections
Sarah is a highly experienced business risk, credit management, collections and business development specialist with over 10 years of experience. She is an expert in identifying and mitigating risks and has helped numerous businesses gain a deep understanding of the latest trends in credit management. Sarah’s recent work includes writing about high-risk businesses and how to identify them and providing insights on using a risk assessment tool like CreditorWatch’s RiskScore to make informed decisions. She also emphasises the importance of performing due diligence on new clients to assess their credit risk and mitigate cash flow risk. Additionally, Sarah has also written about cash control and how to improve debtor management. Sarah’s recent work includes writing about high-risk businesses and how to identify them and providing insights on using a risk assessment tool like CreditorWatch’s RiskScore to make informed decisions. She also emphasises the importance of performing due diligence on new clients to assess their credit risk and mitigate cash flow risk. Additionally, Sarah has written about cash control and how to improve debtor management.
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