Business Partner | Collection Agency

Make the right decision for your business.

 

Allowing unpaid debts to go uncollected can put you in the same position as your debtors – trying to conduct business with insufficient cash reserves – only the risks for you are greater. Without revenue, you are out of business.  Collection agencies focus on claiming your debt, so your company does not have to live with a loss and can focus on other areas of your business. It can be frustrating and time consuming for businesses to devote resources toward collecting their debts. Collection agencies have a vast knowledge of collection techniques, technology and compliance issues. Using a professional collection agency will save you time and money. Likely yielding better results than you can achieve on your own. A collections agency can be a good business partner.

Do you have delinquent invoices?

 

Do you ever feel like your customers aren’t taking you seriously when you contact them about their delinquent invoices? Working with a collection agency can make it easier to report slow pays to the credit bureaus.

While payment overdue letters may be enough to remind many customers they owe your business money, sending out all those letters each week or month could be a time-consuming process. Turning it over to us is an excellent way to ensure collections are always handled on a regular basis.

One of the benefits of hiring a debt collection agency is the feedback available on your customers as part of the debt collection process. Agencies can identify customers who have moved frequently and have had previous delinquencies. This is important because experts say that customers who fit this profile are responsible for up to 90 percent of all delinquencies.

While collection agencies are prepared to completely follow through to get the debt paid, it usually doesn’t come to that. Truth be told, for most debts the first notice from a collections agency is enough to jump start the client into paying.

Tips for Setting up Effective Payment Plans

Often times your customers just don’t have the balance in full to pay. Unfortunately many customers feel that if they cannot pay the debt in full then they avoid you all together. It’s a good idea to try to set up a payment plan with your customer that you both can agree on. Below you will find our top 5 tips for setting up an effective payment plan.

• Review your customer’s history before you call them. Have their account pulled up; know if they have offered you payments in the past and whether they followed through or not. Knowing if your customer has a job and where they work is important in deciding how much their payments could be.

• Have a plan. Know of two or more options for payment before you pick up the phone. Listen to what your customer says and be ready to offer them solutions to choose from. Offering your customer options while you are on the phone with them reduces the pressure on them to figure out what they are going to do. This will increase your chance of getting paid.

• Repeat everything to your customer. Before you hang up make sure you have gone over the complete payment plan with your customer. It’s also a good idea to send out a letter explaining what the terms of the payment plan, such as “$250.00 is due by the 15^th of each month; please contact us if you will not be able to make your payment.” This lets your customer know that you have documented their conversation, you know when their payment is due, and it shows them what you expect from them.

• Get the agreement in writing. If you can have your customer sign a payment agreement and return it to you it will assure your customer that you are serious about getting this debt paid. If your customer doesn’t return the payment agreement to you then you can carry on with your collection efforts, such as hiring a collection agency, because you know that your customer isn’t serious about paying you voluntarily.

• Follow up. Know when your customer’s payment is due. Follow up on that day if it is not received. If they do not hear from you, they could assume you aren’t really that worried about it getting paid.

Keep in mind that if your customer doesn’t follow through with their payment arrangement, it may be time to contact a collection agency. That way you can spend your valuable time working on your business and the agency can help you with your delinquent, unpaid debts.

Collection Agency | How do they work?

Collection Agency | How do they work?

Collection agencies use many methods to convince the debtor to meet their financial obligations. Reporting to credit reporting agencies is a very common practice, which affects further credit from being extended to the debtor in the future. Collection agencies use phone contact and mailings, and investigate debtor’s assets to see how best to recover the debts. Locating the debtor’s employment and putting a lien on their paycheck is another way collection agencies recover debts that are owed.