Businesses require a method and resources to oversee the process in order to deal with situations where payments are late and spread out. The greater the business’s chances are of collecting the debt, the more well defined and widely discussed the collections process is.
According to studies, your chance of recovering an unpaid invoice’s balance lowers to 74 cents per dollar when more than 90 days have passed. If you thought that was awful news, wait until you consider how that will affect the operations of your entire company.
Consider the scenario when your net margin is 10%. In other words, after paying all your suppliers, staff, sales commissions, and other costs like rent, electricity, and communication, you still have 10 cents of pre-tax gain for every $1 of revenue earned in Nigeria.
Let us also imagine that according to your accounts receivable aging report, you have $50,000 in bills that are three months or older. To make up for the money that will not be collected because you don’t have the resources or system to collect it, your business needs to make $130,000 in sales. And that is presuming you keep the receivables from aging further. It becomes worse the longer it takes.
The practice of contacting people and businesses who have not paid can take precious time away from other critical business problems and the attention that is required to manage the firm. Collecting debt can be a highly painful experience for any corporation.
And this is where Lidya Collect comes into play. With Lidya Collect, you can direct debit all of the banks of your clients in order to collect the payments and debts owed to you. You may grow your business more effectively as a result of saving critical time and resources.
Delays in payments have long been a major problem for small and medium-sized enterprises. And the first step in boosting your revenue is making sure you get paid. The second step is to make sure you get paid without any delays and on the predicted date.
With Lidya Collect in place, you can now create automated repayment plans to cover multiple banks and make the process faster and more seamless than ever.
Setting up Lidya Collect
Create and keep an eye on your automatic collections by automating all of your client collections and fund restoration with Lidya Collect.
- Set up the mandate plan specifics, including a clear description, Standing Instruction, quantity, currencies, collection frequency, and start date, by selecting create on the GSI tab.
- Include all payer information and link the payer via BVN.
- Choose to Validate to ensure the correct information, then click Submit to send it to the payer.
- The mandate will be sent to the payer through email, and they can accept or reject it.
- Once it is permitted, it is put in the “active” position so that you may track the progress of your collection.
- You can keep track of payments, see expiring mandates, and deactivate mandates.
Create a Collection with Lidya Collect today and enhance your business turnover to the next level.