ARG ar management
Accounts Receivable Solutions
ARG Accounts Receivable Management is not a collection agency; services are advisory based depending upon the situation. ARG AR Management is utilized by other ARG Companies and directly to clients that are experiencing slow turnover and chronic past dues.
Operational Collection Issues:
AR Management is utilized by clients to analyze systemic collection issues, whether that be company-based problems with personnel, training, systems or company procedure issues. ARG AR Management indexes a company’s collection days to industry averages to demonstrate the cost to the company of below average collection days.
Collection issues may be driven by a lack of credit management by the company. ARG AR Management reviews company’s credit policies and processes ensuring that policies or lack thereof do not drive excessive collection days. ARG AR Management can write, implement and train personnel on proper company credit procedures to optimize AR collection days.
Collection issues may be industry driven and company needs to modify its invoicing and/or collection processes. ARG AR Management can advise on EDI, foreign based receivables, government receivables, or medical receivables, make sure the company is submitting invoice paperwork correctly, or train company personnel to properly submit invoicing to speed up collection days.
Liquidity Collection Issues and ARG Ledgered Receivables
ARG AR Management services provides complete collection services in the event of company liquidation, winddown, bankruptcy or workout. ARG’s services include tracking and roll-forward accounts receivable collateral weekly/monthly with a full reconciliation collateral and cash.
Stakeholders and the company can have a full transaction history for accounts receivable even if the company’s legacy accounting systems are no longer active or unkept. ARG ledgered receivable management saves time, liquidity and results in collateral clarity.
Engagement and Fee Schedule
ARG AR Management can be engaged in one of 3 ways:
• ARG AR Management are engaged by company and function as a company representative, with company phone and email. ARG’s involvement is unknown to
company’s customer base.
• ARG AR Management are engaged by company as a consultant and interact with company’s customer base as ARG AR Management.
• ARG AR Management is engaged as a fiduciary and is collecting receivables for a 3rd party stakeholder or for the estate.
• Regardless of how they are engaged, ARG AR Management fees have two components – hourly rate/flat weekly rate (decided by size and complexities of the
receivables being managed) and by a success fee if applicable.
• Generally, flat rate and hourly work out to be $2,500 per consultant per week. Success fees for “collection activities” are tiered at 3% and go to 5% once a collection
milestone amount is reached.