Time-consuming manual collection processes
Less visibility due to the lack of a centralized database
Irregular following-up system leading to slow/no payments
The Solution – Maxyfi
30+ Hours saved weekly with Automation collection methods
42% increased efficiency; one platform for all data, metrics, and reports
20% faster collections using automated reminders and customizable communication templates
Keeping track of every client's payment status in the AR/collection process was done manually. Derek Yohom, Head of the Credit Control and Collections Team at Banyshop, recounts how the team would create a spreadsheet for each account with all the information such as contact info, invoices, payment statuses, as well as notes on any important detail from a follow-up call done with a collector.
Every time a collector needed to follow up with a client, they had to sort through the labyrinth of spreadsheets to get information on the client and make notes on the same spreadsheet when the follow-up action was completed.
Similarly, the team in other branches of the office did the same in following up with their clients to collect the receivables. This manual process made it all the more labor-intensive and time-consuming for the team, especially when they had to touch every client on board. Overall, the follow-up system was irregular and inconvenient, resulting in delayed payments and poor revenue for Banyshop.
The lack of a centralized database system also paved the way for less visibility and transparency. It even made it difficult for the team members to work remotely because of the pandemic. It became hard to track each other's activity and maintain accurate records anymore.
"We couldn't keep track of the accounts that were followed up, or actions taken and the notes were of little to no help. Working remotely was stressful since we didn't have much access to the resources needed to help with the collections process. We lost a lot of time going through all the spreadsheets individually because there was no centralized system to access the data and work collaboratively," says Tina Haddins, Collections Team Member at Banyshop.
Soon after the pandemic, they realized that they needed an effective solution that would discard most of their manual work since they needed to spend a lot of time getting back their revenue on track to save the business from recession.
Banyshop recognized the impact of moving to an automation solution that would allow them a centralized collections management system and reduce the manual work significantly.
After switching to Maxyfi, the Collections team at Banyshop has been able to save ample time by automating most of the collection work. With a consolidated view of all the client information and a centralized system of accounts receivable automation data, they no longer have to rely only on Excel spreadsheets to access information.
The cloud platform allows them to easily access all the invoices, payments statuses, past follow-up actions, communications, and even notes in one place, from anywhere. This improves the team's efficiency since they can now easily pick up from where they left off and ensure that all the clients are followed up to collect payments on time.
Maxyfi has saved over 30+ hours weekly on manual activities and improved 42% of the collections process efficiency, as well as increasing visibility with the help of real-time data, insights, important metrics, and reports on the dashboard.
Tina says that they have been able to make maximum use of the accounts receivable automation software and features, providing them with a suggested workflow that supported them in improving their collections strategies for better cash inflow. The automated reminders helped a lot since all they needed to do is set up the follow-up schedule and let Maxyfi do the work.
The team found the customizable communication templates an unexpected and added benefit to Banyshop since it saved them a lot of work and resources writing personalized and effective emails/SMS. Tina explains that these templates have been very effective in their purpose, and they have been able to persuade every customer effectually and thoughtfully.
It has also helped them boost their collections cycle, with a 20% significant increase and improvement to the DSO as well. Maxyfi has enabled them to work collaboratively from anywhere, on one cloud platform, and follow up with every customer to keep the cash flow coming in.