Debt doesn’t have to be an ugly word. Some successful SMEs rely on debt but healthy SMEs should be cash rich. Chasing down debtors is stressful and strategies to manage debtors are a key aspect of growing your SME business in Asia.
It doesn’t matter how good your product or service may be, or how many customers you attract to your business, if nobody is paying your invoices you will soon run out of operating cash and find yourself in an unnecessarily difficult position.
The larger the company, the worse its accounts in terms of the ease with which they can be reconciled. This can lead to ‘phantom income’ which results in the real position of a business being far worse than it appears.
SMEs face a different challenge with debt as they depend on day-to-day cash flow to keep their heads above water. SMEs have less data to reconcile and so must be much more accurate in analysing their accounts.
Here are some tips for your SME to avoid accumulating debt;
A Sydney-based debt management fintech firm is entering the South East Asian market aiming to toughen up the region’s timid collections culture. ezyCollect is a provider of ‘software-as-a-service’ that automates the dispatch of overdue invoice reminders and accepts online payments. It is the only cloud-based debt management add-on to be recommended by ABSS. With more than 350,000 users of ABSS solutions, this partnership has already seen a significant number of new companies subscribe to ezyCollect’s software. ezyCollect has adapted its offering to the relatively passive approach to corporate debt recovery in Asia.
AJ Singh, one of the co-founders explains, “The average invoice from an Australian SME is paid in about 30 days, in many Asian countries the average is double that because there’s a concern about losing face if you ask your customers for money, especially if you have a personal relationship with them,” adding, “Automated reminders and scheduled phone calls might initially happen later then they would for ezyCollect clients. Part of the strategic goal is for outsourcing debt management to a “faceless” third party incentivizing more Asian SMEs to use it.”
ezyCollect has had to adapt for Asia as it is illegal to do a credit check in many Asian countries without the potential clients’ permission. Currently, SMEs using ezyCollect are automating on average 110 reminders each month, bringing a 60% reduction in staff time as well as improvements in working capital due to earlier payment of overdue invoices.
Chasing overdue invoices can take its toll on your mental wellbeing, waking up in the middle of the night worrying about paying your bills. ezyCollect eliminates the stress of chasing debtors and SMEs can use this to cut overdue debt by up to 50%.
ezyCollect allows you to automate your reminders with a mix of communications like emails and schedule real live-person phone calls resulting in improved cash flow and profitability for your business.
ezyCollect is a secure cloud based application that integrates with your accounting software. It determines which invoices are overdue, by how long, and then allows you to automate, schedule and distribute personalised communication reminders so you can get paid faster and with much less effort.
There are many additional features for ezyCollect;
Add on ezyCollect to your existing ABSS solutions effortlessly and enjoy the benefits of user friendly debt management;
Debt management is a necessary fact of SME business life. So why not make life ezy-er by adding on a process that runs itself. Take the hard work out of chasing payments and take the stress out of debt collection and management.
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