In any business vertical that uses collection agencies to manage their receivables, there’s a tremendous amount of creditor bandwidth going to manage those agencies. What does that mean? For starters, someone has to do the work of retaining and onboarding agencies, ensuring the proper functioning of all the required checks and balances, evaluating appropriate compliance protocols, ensuring the integrity and proper storage of crucial data and audit trails, monitoring and mitigating known risks and positioning the portfolio for black swan events, reporting on ROI, and on and on, with no end in sight. It sounds like a full-time job, and it certainly is. It’s actually a 24/7 job that few companies can manage efficiently and effectively. When collections and the management of multiple vendor agencies are a side act and not your company’s main event, managing agencies is a diversion of internal resources and talent that you could (and should!) be using to power your core business.
Enter master servicers. These are companies whose core capabilities are completely dedicated to specialized receivables management, so much so, that they are uniquely able to efficiently and effectively manage massive stables of collection agency vendors on behalf of creditors. Since this is all we do, all of our management energy, all of our technology solutions and every single hire is focused on taking care of creditors’ diverse servicing needs around receivables management.
There’s also an important caveat to keep in mind: not every master servicer has experience in the nuances of every industry vertical. Master servicing financial services, automotive, and health care collections portfolios each require a deep and nuanced understanding, respectively. Each type of debt requires experience navigating regulations and guidelines that may apply to one vertical, but not another. If you’re committed to your brand, you’re looking for a master servicer with extended, demonstrable experience in your core line of business.
How can you tell if your business would benefit from a dedicated master servicer? Consider these 7 signs:
- You’re committed to protecting your brand and only want to work with master servicers who understand your industry and will ensure the fair and positive
treatment of consumers and patients.
- You want to focus on and grow your core business by reallocating staffing and systems now spent on asset recovery and vendor oversight.
- You want to unlock value by accelerating resilient cash flow streams and reducing overhead costs.
- You want access to a select network of vendors that have been vetted and proven to uphold a high standard of customer and patient care and stringent compliance protocols.
- You believe in using the best available technology and strategic tools to power solutions.
- You like the idea of your vendor agencies using one proprietary vendor portal (that streamlines complaint tracking and resolution, consumer lawsuit tracking and resolution, maintenance of licenses and legal documents, document management, exception and transaction reporting) to enable greater efficiencies in performance and compliance oversight.
- You’re looking for seasoned master servicing expertise to help you manage the rapidly-evolving business and compliance landscape your business is facing.
Any master servicer worth its salt will be able to demonstrate its ability to relieve your internal resources of the work of managing multiple vendor collection agencies. The bandwidth, time and cost savings should be clear and compelling. Is there anything to lose by exploring a master servicing relationship with a proven leader in financial services, healthcare, automotive and consumer finance verticals? We think not.
Not just any master servicer
Cascade365 provides receivables servicing solutions through Cascade Receivables Management. Cascade Receivables Management is a servicing and technology platform that creates and then implements holistic servicing strategies to meet the needs of its healthcare and consumer finance clients. We apply technology, ingenuity and strategic vendor relationships to create complete servicing solutions. The Cascade Receivables Management executive team has 100+ collective years of experience managing receivables.