Running a business can be tough work. There are multiple demands for your time and resources.
If you are short on either time or resources then a managed ledger service might be right for you.
If you are worried:
- About cash flow?
- That slow payers are giving you the run around?
- That chasing last months slow payers is distracting you from this month's growth?
Then learn more about smartAR's Ledger Management service below!
Frequently asked questions...
What is a Managed Ledger Service (MLS)?
This is when you delegate the debtor ledger performance (i.e Contacting your slow payers for payment) to a specialist external provider. Small ($500k to $2M revenue) and medium sized businesses $2m to $50m revenue) are increasingly having their debtor’s ledgers actively managed for improved cash flow.
How much do these services cost and what are the benefits?
An MLS provider might charge between $100 p.w and $500 p.w dependant on your invoice volumes and turnover. The MLS model has the following advantages:
- Gives access to tried and proven (local) staff with no employment risk;
- Converts debtors to cash more quickly;
- Reduces time & hassles in non-revenue producing roles;
- Dramatically reduces receivables administration costs;
- Eliminates workplace stress associated with a challenging role;
Typically, you should expect to generate $40,000 of additional cash (within just a few months) for every $1,000,000 of turnover. So, a business turning over $6,000,000 should enjoy $240,000 of extra cash. Take a look at the following Extra Cash Calculator link to find your extra cash.
Are there any disadvantages?
The MLS model is NOT ideal for:
- Micro businesses (i.e. under $500k revenue)
- Businesses that mainly trade for cash – i.e. retail businesses.
- Business owners that feel they must do everything themselves.
When you add up the hours you spend calling, emailing, posting, statements, leaving messages, sending copies of invoices - all this takes time. Your time! And time is money.
smartAR has a managed ledger service that works. In fact, we guarantee to improve your cash flow within 90 days.
If you would like to know more or take action, please enquire now.