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Frequently Asked Questions

Why should I outsource my Accounts Receivable?

Costs!

The average cost of billing a transaction can range from $3 to $15 per transaction depending on the company and the transaction in question, and that's if the customer pays on time! That might sound strange, but think about everything that goes into it: paper, ink, postage, labor. Hiring is hard enough, but with training, insurance, time off requests, etc., the costs on your time become monumental. Our fee takes care of all of these categories for you!

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Efficiency and Priorities

Our sole focus is to service your billing, creating an efficient system for your customers to receive the information they need and to easily pay their invoices. Decreasing the time and effort you and your staff put in to A/R means that your priority shifts from hunting down payments to whatever you need it to be!

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Overall Savings and Increase in Revenue

On average our system reduces the amount of your past due A/R by 34%. That's money coming into the business sometimes months quicker than it would be otherwise, if it would come in at all! Better cash flow and less time/labor spent on billing means you have all the more room to grow your business. With Managed Billing, you'll see the average DSO reduced by 15-30. For even better cash flow, our Cash Flow solution reduces your effective DSO to 2!

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What are your service fees?

CACS's Managed Billing Solution is billed monthly on a per-item basis: this allows you to have access to our service at a rate that scales with your business, saving you money on overhead while reducing the costs of carrying receivables and your DSO, giving you access to more working capital!

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CACS's Cash Flow Solution is uses a percentage-based fee structure. We purchase every invoice from you at a "discounted" rate (98% of value, for example, with the remaining 2% being the discount). That discount acts as our fee for funding and servicing that invoice. This percentage is based on analysis of your business and is tailored to you specifically, and is static, meaning it won't change on you month by month. This will be the only fee you pay for this service.

What's the difference between the CACS Cash Flow Solution and just getting a Receivables Loan?

CACS Receivables Funding

  • Minimal impact on the balance sheet: Asset to asset, this allows you to record this as receivables to cash, with the note of the contingent liability due to full recourse.

  • Utilize funding at a lower cost and eliminate unnecessary overhead

    • 0.5% funding fee​

    • 1.5%* covers ALL other costs (postage, paper, reporting, customer service, reporting, basic collections, labor, online resources)

  • Daily monitoring of every account's status: We provide you with constant updates and recommended action on any patterns showing trouble or critical accounts.

  • Extend the benefit to your customer: We offer payment plans to customers in need of assistance with paying off their account

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*fee is adjusted and set upon entrance into the program based on analysis of business

Receivables Loan

  • Negative impact on the balance sheet: Asset to liability

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  • Potentially expensive interest rates, or even rejection

    • 6-8% interest rate (0.5-0.7% funding fee equivalent)​

    • No assistance with servicing receivables, resulting in the associated overhead costs (labor, paper, tracking, etc.)

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  • No online review available unless provided by proprietary software

  • No monitoring provided

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  • No benefit to your customer

I'm fine doing my billing, but I sure could use the funding...

That's perfectly fine! We can trim our services (and the cost!) to match your needs. If you want to keep doing the billing but you would love the cash up front for your sales, we make that work. Or perhaps you don't need the cash flow, but you hate dealing with the billing and the collection of the payments. We can work that for you! While we prefer to service the entire Receivables package, we will happily tailor it to where we can help the most.

What are your collection practices?

First and foremost: We are not a collection agency. While we can execute collection actions up to the point of legal action, we are a Servicing company. This means that we manage and service your receivables, allowing you to dictate how we proceed with collection efforts. You never have to be afraid of customers receiving collection calls without your notice and permission.

What is "full recourse"?

The CACS Program is a full recourse program. This means that upon entering into the program, the merchant personally guarantees every receivable sold to CACS. In the event an account reaches 120 days of delinquency and there have been no successful collection attempts, the merchant agrees to buy back the receivable. There are many actions taken to assist in the prevention of this being necessary:

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  • The merchant can select who to allow to hold a charge account

  • Our vigilant reporting allows us to detect and take action on delinquent accounts before they hit a point of danger to the merchant

  • We manage reserve accounts for merchants for trouble accounts that may need bought back

  • Payment plans extended to the customer to help ensure collection of the delinquent amount

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Maintaining a full recourse agreement allows us to provide you more of your cash immediately after sale, AND ensure that every account you want serviced and funded goes through. If you say it's good, that's good enough for us. We do the leg work of monitoring throughout the life of the account, so you don't have to worry about your customers getting blocked behind a credit wall.

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