Built in Silicon Valley, we have relocated to San Diego to soak up the sun!
Our company's physical journey aside, we created Accounts Receivalbe software based on the journey of our work experiences. The greatest moments of influence and inspiration came from working for internal and external collection agencies in college. We noticed minimal revenue collection while wasting a tremendous amount of resources. Most of our time was spent listening to ringing phones and voicemail greetings. 10 years ago, people rarely answered their phones. Today, we know cultural trends lead to even fewer people answering calls, especially from unknown numbers. Why do people still think the best way to "nudge" a person into paying is by repeatedly calling?
Besides cultural trends, people have been programmed to ignore collection calls. The primary reason, they don't expect real help to resolve their delinquent bill. In rare cases, they offered rules-based payment plans or used a guessing method, not factoring in the person's actual repayment cababilities. Therefore, payment plans were usually not accepted or defaulted. This needed to change not only to prevent the customer from write-offs and negative credit score impacts, but also to capture more revenue. The solution is to provide custom made payment solutions aligning with a person's financial picture to flip past due accounts into cash. We set out to reclaim more revenue, and make a positive impact by helping people avoid getting stuck in the downward spiral of damaged credit.
Second, we had to cut operational costs since it was burning tons cash, unnecessarily. We noticed entire floors and buildings full of people in cubicals using autodialers to make outbound calls without taking payments. Past due account holders veiwed these "nudge" calls as harrassment. Sometimes, defiance would settle in and it became a game of refusing to answer. Also, they expected to talk to a rude person who doesn't listen and demands the past due amounts in full without any flexibility, now. In rare cases when we were working in A/R departments, people wanted to talk and they would call. They were usually upset by the time we talked due to receiving multiple calls per day all day long, long wait times on hold to talk when they were able to return our call, they had recieved different information from different people, and they didn't understand the past due bill. Providng a self-serve tool with all current aggregated info in one place where they can review and access 24/7 was the best answer to reducing A/R costs and improving customer experiences.
We learned a ton about A/R collection problems and carefully built a solution that would fix them based on our first-hand experiences. We also saw this as an obligation to correct a very broken process. Revenue draining away from companies, and people without realistic solutions to help pay their bills, negatively impacts all of us. Updating A/R processes that haven't changed in decades to fit our modern world has better results and makes everyone happy.