Shaun Bist is a strong advocate for small-to-medium enterprises. His firm, Knight BPO, specialises in simplifying, streamlining and structuring accounts management systems using methodology typically seen in large enterprises. “Reports, information and processes are just as relevant for SMEs–they need to be on top of that, too,” says Shaun.
Knight BPO manages the books and processes of a variety of organisations across a number of industries. Though diverse, a few of them share a common challenge: how to improve cash flow by reducing overdue debt. With some industries predictably slower to pay than others, Shaun needed a solution to bump his SME clients to the top of the ‘to-be-paid’ list.
> Visibility: When dealing with bigger businesses or even not-for-profits, clients’ invoices were sometimes overlooked, lost in the system, or simply ignored.
>Systematic communication: In Shaun’s experience, an overdue invoice requires up to two reminders to get some sort of response.
> Tracking and reporting: Knight BPO needed accurate information and tracking of debtors in order to report payment progress back to their clients.
> Customisation: Knight BPO’s clients want to decided on escalating actions (like referral to a debt collection agency) on a case-by-case basis.
> Scheduling of tasks: The Knight team needed clarity around debtor management tasks allocated to each of them.
- Within three months, one Knight BPO client stopped using credit financing to cover cash flow shortfalls, paid back its financing loans plus interest, and became cash flow positive.
- Knight BPO saves an estimated 5 hours of debt management duties per week for each client using ezyCollect.
- Within three months, one Knight BPO client has slashed its overdue debts by as much as 75%, with only 10% of debts now overdue.
- Follow-up tasks like making phone calls are automatically allocated to Knight BPO staff–no more confusion about who’s doing what.
- The complete history of debtor management tasks per customer is logged in ezyCollect, so Knight can update its clients with accurate information.
Within three months, one Knight BPO client had slashed its overdue debts by as much as 75%.
Automation and systematic methodology has been key to leveling the playing field between Knight’s SMEs and their big business customers. And Knight BPO is not afraid to politely jostle its SME clients to the head of the creditor queue.
The language of reminders is important so personalise the reminder templates to suit your business. Sometimes invoices get ‘lost’ so a gentle first reminder is often appreciated by the debtor.
A business with high volume, low value invoices will benefit; and businesses that need to send a few reminders before payment occurs.
To see how ezyCollect can benefit your bookkeeping clients, schedule your free demo today.