The convenience of debtor management software

When debtors delay payments or fail to pay, does this cause you stress? You are not alone. Many companies have to deal with this
Photo of a man working on his laptop with the software of Payt

What is debtor management?

These are all activities that a company carries out with regard to its debtors. Good debtor management is important and ensures customers pay their invoices on time. It is a very effective way to grow your company’s working capital.
Photo of two people sitting opposite of each other and talking about the software of Payt that can be seen on a laptop

Why is it important?

The primary goal of a company is to achieve maximum profit. Products are purchased competitively and sold with maximum profit. This cannot be achieved if customers do not pay their invoices or do not pay them on time.

Poor liquidity can jeopardise a company’s survival. A large part of the bankruptcies are caused by poor debtor management. This then makes good debtor management a very important part of an organisation.

At Payt we believe that in percentage terms, deliberate defaulters are minimal. Good debtor management therefore consists of finding out the reason for the non-payment.

Has the product or service not been delivered? Does the customer have a complaint? Or is there an error on the invoice?

Communication with your customer is very important to achieve this. Good debtor management improves the payment behavior of your debtors and improves customer relationships. This will result in a shortening of the payment term and a reduction in the amortisation of unpaid invoices. Ultimately, this makes a direct contribution to the profit of your company!

Automating debtor management

Many companies work with different programs, such as accounting systems and CRM systems. These systems are effective for keeping track of customer data, contracts and information about appointments. To take even more work off your hands, Payt’s software links with these programs. This gives you more time for other important matters within your company.

Payt’s software makes it possible to send invoices and payment reminders fully automatically, from your first invoice to the last reminder. Payt structurally reminds your debtors of the outstanding invoices. This ensures consistency in the process and better payment behavior of your customers.

Screenshot of the Payt software where you can see an overview of all invoices and debtors

Outsource debtor management

It is common for people to ‘outsource’ the work of their debtor management. In most cases, this is quite sensible. Professionals can often do the profession better, faster and more efficient. So you can focus on other important things within the company.

There is a part of debtor management that is difficult to outsource. And those are the substantive disputes or questions from your customers. You will hardly be able to outsource this in a good way. There is even a considerable risk in doing this. You can lose your customers. Customers do not like having to explain to an external agency that the product was not delivered as agreed or that there is an error on the invoice letter. You can respond better to this in order to maintain the customer relationship.

When you feel that approving a payment plan is also one of your decisions, then you’re a long way from outsourcing the rest to us! We follow up on all invoices automatically and according to your schedule. On average you will be left with 50% less work. You retain control and all the important personal contact with your customers.

Advantages of Payt

Using debtor management software has many advantages:

  1. You will regain control of your debtor management. In the Payt platform you can immediately see what the outstanding balance is, in which phase of the billing process a customer is and which invoices require action.
  2. Your debtors are structurally reminded of outstanding invoices. Consistency in this is very important for good payment behaviour of your debtors. Payt structures the communication with your debtors. Every debtor has the option to leave a message in the Payt communication portal. This enables you to find out why a customer does not pay his or her outstanding invoice and respond appropriately. This promotes the payment behaviour of the customer and customer satisfaction.
  3. Payt makes payment easier for customers. The software makes it possible to add PayPal and direct debit to every invoice and payment reminder. This lowers the outstanding balance in almost every industry.
  4. By using Payt’s software, you save an average of 50% of the time required for debtor management.

Curious what Payt can do for your organisation? We are happy to tell you in a personal consultation.