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.

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.

Hire a Collection Agency | Save Time and Money

Hire a Collection Agency | Save Time and Money

Considering hiring a collection agency is a situation many business owners find themselves in; a collection agency is a lot like a detective agency, except it focuses all of their energy on unpaid debts.

Locating debtors takes time and skill. It’s what they do, searching databases, paying for access to these sites, and knowing just where to turn to find someone. Often times it takes a large chunk of time out of your business to spend the time and energy searching for people.

A collection agency will contact family, friends, and even neighbors in hopes of finding a lead on the debtor. With a collection agency having more resources available to them than the average person or business, it is more efficient as a business owner to turn accounts over to a collection agency.

When is the right time to hire a collection agency?

 

Should I hire a collection agency?

Often times the number one question is, should I hire a collection agency? The answer is YES.

If you are considering hiring a collection agency, don’t be discouraged. It is a situation many business owners find themselves in. A collection agency is a lot like a detective agency except we focus all of our energy on unpaid debts. Locating debtors takes time and skill. It’s what we do.