Accounts Receivable Portfolio Liquidations

With over twenty-five years of experience in the Liquidation of Accounts Receivable for various Lenders of all types and sizes, we have a remarkably successful track record at lowering their overall A/R management costs, significantly accelerating their cash flow, and reducing their bad debt losses – in fact, we’re ranked among the industry leaders specializing in this field.

For each portfolio liquidation we undertake, we assign a dedicated team of professionals who, in addition to pursuing payment via phone and mail, secure inventory documentation, resolve customer disputes, visit major customers as needed, manage dilution to minimize offsetting credits, handle attorney referral/litigation, apply cash on a daily basis and report regularly on the collection activity and strategy via written reports, conference calls and/or meetings.

Liquidation Services for Secured Lenders …

  • A/R Consulting & Auditing
  • A/R Reconciliations
Our forte involves liquidating the A/R of companies that have gone out of business and/or defaulted on loans to Secured Lenders. We quickly and efficiently convert the outstanding A/R of foreclosed or insolvent business into cash for our clients.

We have a high recovery rate, averaging greater than 50% -- making our services very cost effective, netting our Lender clients even more cash-in-hand than if the accounts receivable were simply sold off.

Features & Benefits of our Lender Portfolio Liquidation Services …

  • We’re fast. We start within 48 hours of a referral.
  • We expedite account closure – Doing this work since 1979, we’ve heard all the imaginable and even some unimaginable avoidance techniques that businesses will use to evade payment, and have become quite adept at handling all of them – in fact, in many cases we anticipate them.
  • We’re cost effective. Our recovery rate averages more than 50%.
  • We employ more than 850 customized programs to get our work done – making us one of, if not the most comprehensive and efficient portfolio liquidation-collection system in the industry.
  • We generate a variety of performance reports for our Lenders, including Detailed Claims Reports customized to meet Lender-specific requirements.
  • We’re equally as experienced in working with service industries as we are with product producers and distributors.
  • We work directly with Bankruptcy Trustees and Certified Turnaround Professionals.
  • We’re fully bonded and certified.
  • We’re members of the Turnaround Management Association, the American Bankruptcy Institute, and the Association of Insolvency & Restructuring Advisors.

Accounts Receivable Consulting/Auditing

An Ounce of Prevention …

To anticipate and preclude the kinds of serious financial problems that frequently arise from a failure to adequately tie A/R collections to cash flow needs, it makes good sense for a business to have a strategy in place for managing various A/R issues before problems occur.

Prior to, and to prevent the eruption of any financial crises, UMAC is available to serve as an additional set of “eyes and ears” (A/R auditor-consultants) for a business’ back-office A/R procedures.

Assuring Proper Financial Controls …

As A/R auditor-consultants, we operate directly on our client’s site, gathering detailed information regarding its accounts receivable and its collection system. We run audit-like tests to gauge the viability, reliability and accuracy of the A/R and peripheral processes. From our data gathering, testing and analysis, we provide a report on the strengths and weaknesses in a client’s A/R, handling methods with item-specific, concrete recommendations for a proper A/R strategy in the context of the client’s overall Financial Management System.

Clients who utilize our A/R Consulting/Auditing services have consistently praised our work as highly beneficial to the establishment and maintenance of good financial controls, and as having an immediate, obvious and significant pay-off in their control over A/R and in resultant cash flow improvements.

When to Call On Our Consulting/Auditing Services …

The time for calling on us to work either directly with in-house A/R staff or independently of them, is, of course, when change is needed.

But it’s not always clear, until it’s too late, that something should be done to facilitate a change in how A/R is being handled. Therefore, an advantageous time for us to evaluate, identify, recommend and implement enhancements to an A/R environment is when any of the following circumstances is present:

  • The business is experiencing cash flow deficiencies
  • The business is unsure of the collectibility of much of its A/R asset
  • The business faces the prospect of a significant surge in sales
  • Merger, acquisition, strategic partnership or sale is being considered

In such situations, it’s wise to ask us to take a look at what’s going on and suggest improvements that may be in order.

The weight of our experience in this arena …

Prior to their current line of work, our A/R auditor-consultants held senior level financial management positions with major organizations, and, taken in the aggregate, they represent some 200-plus years of solid experience in the management of A/R.

A/R Co-sourcing

University Management Associates & Consultants Corp. offers a variety of A/R services on a Co-sourcing basis.

In Co-sourcing, we contact our client’s A/R accounts directly, employing a focused approach that affects immediate cash flow. In doing so, we accelerate payments and maximize the profitability of the accounts receivable while simultaneously reducing the overall costs generally associated with debt collections.

Our Experience …

Among the pioneers in this area, we have been doing A/R Co-sourcing for more than twenty years.

Features of our A/R Co-sourcing …

  • We tailor each engagement to the specific needs of our client.
  • We demand immediate payment from client accounts via phone and mail.
  • We visit major accounts, as needed.
  • We apply cash and update records.
  • We identify and resolve customer disputes and deductions.
  • We handle attorney referrals and litigation.
  • We report monthly summarizing activity.
  • We hold regular meetings and conference calls.

Benefits of our A/R Co-sourcing …

  • We convert non-performing working capital into cash, quickly.
  • Our efforts are aimed at achieving maximum cash flow for our client.
  • We are prepared to accept projects based on type of accounts receivable – such as, skipped invoices, deductions, chargebacks, 60-90 day past due invoices, etc.
  • Our strong customer service orientation invariably strengthens client-customer relations.
  • With us, clients can avoid some fixed overhead expenditures such as permanent personnel additions.
  • We run parallel with our client so that nothing is lost once the collection process is taken off the client’s site.
  • Our collection staff also has extensive liquidation experience.