End to end Receivables Management solutions for a leading Residential Lettings agent

The Client

The client is a wholly owned subsidiary of one of the largest real estate groups in the UK. It specializes in a range of destination and corporate tenancy management services, which are extremely flexible in nature.

Process Outsourced

End to End Receivables Management including Debt Collection

Methodology

Our solution for the client was an end to end Receivable Manangement program - an initiative that involved the following activities:

Accessing the client's accounting systems over a secure connection and running arrears reports to shortlist tenants and landlords that have defaulted in their payments

• Analyzing the defaulter situation and identifying further action

• Making calls to defaulters reminding them of pending payments

• Sending chaser letters to defaulters at intervals of 7, 14 and 21 days

• Initiating the legal process by sending notices/reports to solicitors

• Processing payment notices and updating the information in the accounting system

The model proposed by us was a combination of onshore and offshore. We deployed 2 teams, one based in India and the other based at the client's offices in the UK, and divided the workload between them.

At the India end, we employed predictive dialing technology, which made the process of contacting defaulters faster and more efficient. At the same time, the practice of running regular arrears reports enabled us and the client to correctly assess the debtor situation.

The activity sequence of the Receivables Management process is illustrated below:

The Benefits

Apart from saving significant operational costs for the client, AuthBridge has delivered a number of other benefits as well:

• Implemented a trackable system for tracking and following up with debtors for payments, thereby improving the liquidity position of the company by 10%. This enabled the client to make timely payments to its vendors and suppliers

• Built a mechanism for tracking information on receivables and payables, thereby enabling the client to forecast cash flows better

• Reduced the number of delinquent cases by 18%

• Reduced the average time for making payments to landlords from 8 days to 3 days, thereby improving the client's brand image and helping build better relationships with business associates