Tag Archives: accounts receivable

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Efficiently Manage Your Accounts Receivable

Revenue is important to any business, but it’s not just about the profits. It’s also about successfully collecting money owed to you by debtors. Otherwise, you’ll slowly start to see your profits turn into losses. It’s not always easy, but with some planning and organization, you can start to collect your company’s outstanding balances more efficiently and without any headaches for your accounts receivable team.

Here are some tips to get you on the path to debt collection success:

Track your loans – Document who you lent to, the date of the loan, and the expected payment due date. Also make a special note for overdue payments and how they will be handled. If late fees are not outlined on the initial invoice you may find yourself fighting with your clients when you try to add them on to the amount due. 

Document customer payment history – Not all customers pay on time. Knowing when a payment can realistically be expected from any given debtor can ease the collection process down the road. Tracking when payments tend to come in from customers will allow you spot trends and allow you to appropriately develop a collection plan. If someone is consistently a month late with payment a late fee after 30 days might get them moving with a little more pep in their step. 

Acknowledge your debtors when paid – Especially for on-time payments, a ‘thank you’ can go a long way in ensuring you’ll continue to receive prompt payments. This might seem a little silly, but remember your clients are paying you with their hard earned money. Sometimes it’s nice to see that it’s appreciated. 

Still struggling to collect your debts? The Debt Collection Experts can help you with your debt collection needs.  Get a FREE Quote today!

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Persistence Pays Off in the World of Debt Collection

The best debt collection practices involve persistence. While this seems simple, persistence takes a lot of work and a lot of hours. In especially difficult debt collection cases, accounts receivable departments can begin dedicating too much time to one case at the expense of more important and lucrative projects. Many delinquent clients have no interest in talking to a bill collector, and fruitless efforts can easily strain employees engaged in debt collection tasks.

When tasks become too burdensome and expensive for businesses to handle in-house, they outsource. Thanks to the emergence of many professional collection agencies, debt collection can now be outsourced as well. Third-party collection services have the manpower, the time, and the experience to recover your debts through relentless—yet professional—persistence.

Your accounts receivable department might not be as well-versed in all of the techniques and methods available for debt collection. If a client goes radio silent on your team, will your team be able to properly skip trace in order to find them? Is your team nuanced enough to know when a client is on the edge of getting fed up and giving up paying you back altogether? It pays, literally, to have a professional team of debt collectors backing you up.

The Debt Collection Experts employ professional debt collectors that begin quickly and pursue delinquent parties until your funds are recovered. The service doesn’t cost a dime unless fund are recovered and there are no upfront fees, making the Debt Collection Experts a beneficial, hassle-free debt collection partner.

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Using Technology to Track Down Debtors

Clients who have never worked with a debt collection agency before often wonder how a collection agency will be able to track down the debtors they haven’t been able to. There are many methods available to a commercial collection agency, but one of the most effective ways to locate a debtor is by using a skip trace. Skip tracing is not only used by collection agencies as process servers, bounty hunters, lawyers, and police detectives all use this method to locate their persons of interest.

As we’ve already mentioned, skip tracing refers to methods used to pursue debtors who have gone missing. It is an unfortunate reality that many debtors relocate in an attempt to leave debts behind them and stop collection calls and other efforts. Account receivables departments at many businesses feel overwhelmed by such bad debt collection cases and may give up, forfeiting the funds that are rightfully theirs.

Fortunately, debt collection agencies now employ technology to help track missing debtors. Debt collectors work tirelessly to discover leads and uncover information to find out where missing debtors may have gone. Even though there are various laws regarding who a debt collector can speak to about a debtor’s personal information, skip tracing is highly effective. A properly licensed collection agency that operates within the law can even employ deep skip tracing methods to locate debtors who have moved to another state or even country.

Here are some items that may be used by a debt collector while skip tracing: credit reports, job applications, utility bills, social security, and public tax information. Collection agencies are experts at locating individuals who don’t want to be found.

As a fully-licensed collection agency, the Debt Collection Experts are prepared to tackle complicated debt collection cases using skip tracing technology. Contact us today for a free quote.

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This One Rule Can Eliminate Outstanding Contracts

A handshake is a wonderful option to have when it comes to doing business—unfortunately, it’s not always reliable. While some clients can be dependable and trustworthy, there’s no guarantee everyone you work with will stick to their word.

Instead of getting yourself in what can be an ugly situation, make a personal policy when doing business—put your contracts in writing. Doing so protects you and your business, and the other party shouldn’t hesitate in agreeing to your request to have a written contract.

What to include in a written policy: the service(s)/product(s) to be performed, when they’ll be delivered by and how much the customer owes. Make sure your terms are clearly stated so there’s no confusion. Once the customer signs, then you have a green light to begin working with them.

Stick to a written policy, and you’ll have a better chance of avoiding bad contracts.