Tag Archives: debt collection

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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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Varying Debt Collection Approaches Can Lead to Better Results

Experienced debt collectors realize that each case may need to be approached and treated differently. There can be a multitude of reasons debtors aren’t making payments. Because of this, debt collection crosses between the worlds of business and human interaction. You don’t always know the situations your clients are in, sometimes a kinder approach can be much more effective than a hard-nosed employee demanding payment during a phone call.

Accounts receivable departments have to approach many kinds of people, which means making a “one-size-fits-all” solution is virtually impossible. It’s important to never assume somebody isn’t paying simply because they don’t want to or are trying to scam you. It’s much more likely that they can’t pay at the moment or are unaware of the full situation. If a client feels you are approaching them aggressively from the start they may go into a shell, whereas a more even-tempered approach might open the lines of communication and help you arrive at a repayment plan.

Professional collection services and collection agencies utilize quality and tested communication methods for the best results. Collection agencies deal with debtors every day of the week, so they know what approaches will work for who. Here at the Debt Collection Experts we have developed a truly comprehensive approach to debt collection. A free quote from us can provide relief to your business and recover missing funds in no time at all. What are you waiting for? Start adding to your bottom line today!

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Owed Money? Follow These Steps to Collect

A debt collection agency’s job is no easy task. They’re on the phone all day with people who don’t want to speak to them and they’re looking for people who don’t want to be found. If a company is trying to handle their collections in-house rather than through a 3rd party collection agency they’re just passing this stress on to their employees. This sets them up for disgruntled employees and a bottom line that’s in the red. Plan ahead to effectively collect the debts you’re owed and keep your employees happy and motivated.

Here are the steps to follow when dealing with unpaid invoices:

Make a payment request – Believe it or not, some companies fail to do as little as reminding a debtor that there’s an outstanding balance. Ask for payment via an invoice and establish a due date. 

Have a plan for overdue payments – Just sending the invoice is not enough, if it’s not paid on time you must follow up quickly. If 2 weeks pass before you ask for payment, that client will think they can pay you 2 weeks late each time. Then it’ll stretch to 3 weeks, then 4 weeks, and then you’re in trouble. 

Consider using third-party collectors sooner rather than laterDebts are more easily recoverable when you don’t wait to address late payments. A collection agency’s success rate quickly decreases with each month that goes by without a payment, so contact an agency quickly if a debtor isn’t responding to your professional communications and requests.

Let Rapid Recovery help you with your debt collection needs.  Get a FREE Quote today for collection agency services.

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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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How Debt Collection Works—And Doesn’t Cost You a Dime

Debt collectors often get a bad reputation for being bothersome, cold, and not understanding. In reality, collection agencies approach debt collection with a multitude of approaches, some nice and some not so nice. This is due to the fact that collection agencies understand not all debtors are the same and not all debtors will react to the same tactics.

While debt collection agencies can be aggressive in pursuit of debt, the main goal is to get in contact with the debtor and recover at least part of the funds. Professional calls and letters are used initially, inviting the debtor to communicate with the agency. If those go unanswered skip tracing may be used to track missing debtors and identify where they are currently living or how they may be reached. In extreme cases legal action may be taken, but it’s a rare occurrence. Regardless of their methods, collection agencies must remain professional and non-threatening to be successful.

As far as cost is concerned, debt collection services shouldn’t actually cost you anything unless the recovery efforts are successful. Commercial collection agencies typically take a percentage of recovered funds—and that’s all they should take. Be wary of agencies that charge upfront fees as you may be paying to keep them in business.

With a high payout scale and recovery rate, the Debt Collection Experts allow businesses of all sizes to recover owed debts without risk or any additional cost. Contact us today for a Free Quote and to give your accounts receivable team a break.

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The Importance of Regulations in Debt Collection

Debt collectors are persistent, determined and hard-working. They’ll chase down a debtor relentlessly in order to make their client happy. However, this doesn’t mean they are free to pursue a debtor in any way they see fit. Just like any other industry, debt collection has a set of standards that must be followed in order to avoid legal battles.

Debt collection agencies are tied to a strict set of national and federal regulations that they must adhere to. The various laws, acts, and ethical guidelines can make debt collection difficult for those who are not equipped to handle the task properly. For this reason, it is important to select a debt collection agency with capabilities that align with your goals and needs while working within the law. Make sure your debt collection agency is pursuing your debts legally, otherwise you may lose the ability to collect on those debts altogether.

There are license requirements that vary between states and countries, and it may be necessary to select an agency with the capability to collect debt across state lines or borders. It is also important to select a collection agency that deploys debt collection methods that match your end goals and ethical guidelines. If an agency is too rude or aggressive, a debtor may try to retaliate or make the situation more difficult. Those looking for dental or medical billing debt collection need to select an agency that is sensitive to maintaining the patient-provider relationship. Collection agencies should have an excellent track record in terms of recovery and a positive reputation. Before working with an agency it might be worthwhile to seek out their past reviews online or speak with one of their past clients.

The Debt Collection Experts are licensed to work in all fifty U.S. states and hundreds of countries worldwide. An effective multistage approach maximizes efficiency and the chances of recovery, and a network of attorneys is available to ensure compliance to legal regulations and codes. Get a Free Quote Now.

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Are You Performing Credit Checks?

Any accounts receivable department has an important job to do because a company can’t run without income. Still, it’s almost never a totally smooth process when it comes to collecting on invoices to clients. Companies provide products and/or services to their vendors on a daily basis, but payment isn’t always made on time. If a company knew which vendors are reliable when it comes to payments, the amount of uncollected debts would decrease. Have you considered running credit checks on your clients? 

Credit checks might be the savior your company has been searching for. When engaging in business with a new vendor, there’s nothing wrong with performing a credit check to review its history in paying its debts. This is a perfect way to discover if a vendor if responsible when it comes to paying balances. If you spot any red flags in their payment history, you can develop a collection plan to increase your chances of being paid, or in some cases, choose not to do business with a customer if you have reason to believe you won’t be paid.

Taking this strategy to the next level, you can create tiered payment options internally so you know exactly what to tell each client and they’ll be fully aware of what the payment terms are based on the results of their credit check. For example, poor results on a credit check would result in invoices that are due upon receipt with additional penalties every 14 days the invoice goes unpaid. If your client’s credit check looks exceptional you can feel more comfortable providing payment terms of net 30.

Don’t be afraid to run a credit check because you think you might hurt your client’s feelings. Remember, it’s your business and your employees you’re protecting. You want to make sure you’re paid so your business can keep operating and your employee’s can be paid on time. However, keep in mind that credit checks won’t solve all of your issues. If you’re still struggling to get paid, it might be time to contact a collection agency.

Contact the Debt Collection Experts today for a FREE Quote!

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Debt Collection: Effective Strategies For Any Business

Collecting money from uncooperative clients is a part of doing business and is basically unavoidable. If you’re a business owner, having a few useful debt collection strategies in your back pocket can make a world of a difference in preventing or resolving these types of predicaments.

When preparing to visit or call a customer who owes you money, make sure you know exactly what invoices are unpaid, when they were due, and the total balance due so you have facts to back up your claims. Whenever possible, you should have documentation (ex. Invoices) that backs up your claims. This allows you to be fully in control, your request for payment can’t be argued with.

Of course, some clients might have reasons for not paying on time and may try to put it off further. It’s OK to listen and acknowledge these reasons, but hold your ground by reminding them of the payment terms they have agreed to. If a customer has a history of paying on time but has an occasional excuse, you may consider being flexible with their payments. Likewise, if a client is never on time they should not receive the benefit of the doubt.

It’s very important that you’re optimistic and upbeat when trying to collect debts. A negative attitude may come across in your communications with a client and lead to a poor business relationship. People are less likely to go out of their way to pay someone they don’t like. If you foster strong relationships with your clients they may feel bad when they are late with payment, which means they’ll do what they can do pay you as soon as possible. Don’t destroy a client relationship just because they are 1 week late on an invoice. Always keep things in perspective.

Here are some other tips to help out your accounts receivable team:

Billing Clients –  Make sure your invoices are designed and explained with simplicity in mind. This will allow your client to clearly see when and how much is due.

Payment Terms – Let your clients know what their payment options are in clear terms. You want to avoid confusion down the road.

Require Partial Payment Upfront – Some clients will willingly pay all or a good portion of the bill before services are even delivered. This can make collection much easier when services are complete, or possibly not necessary at all in the case of a full payment.

Struggling to collect on your unpaid invoices? Contact the Debt Collection Experts 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.