To help you better understand how billing advisors work and what are the ideal processes for this type of business, in this article we separate everything you need to know about them.
What is billing advice?
A collection advisory is a service provider used by companies to perform work focused on debt recovery.
As the identification suggests, billing advisors were created with the purpose of assisting other companies that do not have as their main activity billing. They work with debit customer portfolios and their objective is to recover as much of the initial debt value as possible, i.e. what the customer owed from the beginning. For the commercial debt collection agency this is a very important matter.
The collection advisors have some divisions according to their work model. Are they:
Special Shared Charge
The Shared Special Billing model is less well known to the general public. This is because it happens in a slightly different way than traditional collection offices.
In this model, the advisory works within the company that hires her, but she is responsible for hiring staff and taking with them the technologies necessary for billing. This way, she is focused only on this client and the only way to serve others is to divide teams into several companies.
Conventional Billing
In such cases, the staff works in a collection office, with its own personnel and technology. This format allows the same consultancy to serve several companies, according to their capacity.
What is a collection office?
The advisors who choose the conventional billing model end up being called the billing office because they have their own place to perform their work. This identification is made by serving several companies and assuming the role of recipient and negotiator with the end customer.
Most billing offices are shaped to be able to serve customers not only at distance contacts, but also to receive them when needed. This happens mainly in cases where the collection portfolio is from the same region where the advisory is located and, when well used, this proximity can help in receiving debts.
Type of debts covered by collection advisors
As its name suggests, judicial collection is one that focuses on debts that have already entered legal proceedings. In such cases, the purpose of the collection counseling is to be able to reach a settlement that is profitable and expedites receipt, as the court process is often time consuming.
In cases such as the judicial collection of financing, it is often more advantageous to receive an amount less than the initial value than to seize an asset in bad condition or with debts higher than its value. The advisors that make the judicial collection necessarily have a lawyer on the team. This is because when debt becomes a court case, there is a need for a legal representative during negotiations and also for the officialization of agreements.