A Brief Guide on Services Provided by Debt Collection Agencies

October 25, 2019
business debt collection services

A study conducted in 2017 indicated 8,513 debt collection agencies were operating in the United States. The primary purpose of business debt collection services involves recovering delinquent amounts and past-due debts. A payment is considered late 30 days after an invoice is sent or after goods get to the client.



Subsequently, the consumer officially becomes a debtor. As a business, there is little you can do when a customer declares bankruptcy. As customer payments get delayed and pile up, business owners can barely find time to follow-up on payments.



To attain your business goals without any distractions, you can outsource business debt collection services. They offer a wide array of services depending on the Debt Collection Agency's policy. Below is a detailed guide on services you can get from a business debt collection agency.



Client Tracking and Data Verification Services


So much time and effort can be spent attempting to track down delinquent customers and persuading them to pay. One of the key benefits of hiring an accounts receivable collection agency is saving on time and human resources. Without the hassle of following up on delinquent accounts, you can focus on maintaining smooth business operations.



In many cases, debtors end up changing their contact information or move their houses without notifying the creditor. Business debt collection services come in handy during such unprecedented scenarios. Using their tracking services, they create a list of defaulters and their current contact information.



A reputable debt recovery agency deploys the current investigative techniques to identify a customer's location and uncover hidden assets in case there are any. Business collection agencies do extensive research to confirm if the debtor company is operating at a new site or operating under different names or with different contact information.



Credit Analysis


The majority of debt collection claims result from the debtor facing a financial crisis. Business debt collection services help strike a balance between the creditor and the debtor's demands. A debt recovery agency seeks to understand the debtor's financial situation as well as the creditor's financial position.



Once you notify the agency of a non-payment, they begin the evaluation of the collection progress. A business debt collection agency works closely with you and your debtor to implement a strategy that best suits the situation. Understanding both parties helps a business debt collection agency when developing negotiation strategies.



When a dispute arises, agents work at gaining the trust of your customers and solve problems on mismanaged particulars. Business debt collection services ensure the credibility of your company always remains intact. A debt collector tries to reclaim the legally and ethically owed debt for a creditor.



Payment Agreement Plan


Business debt collection services rely on the debtor's ability to pay. In most cases, the debtor is unable to pay the accrued debt all at once. An accounts receivable management collection agency negotiates and enforces payment plans, which may be on a weekly, bi-weekly, or monthly basis.



These plans get documented and are binding to all parties involved. Before making any conclusions, all payment plans are subject to approval by the creditor. In case there are disputes where the debtor has some damage claim against the creditor, the debt recovery agency drafts a fitting settlement plan.



In such a case, the creditor agrees to accept less than the full balance owed as part of settling the dispute. While a long-term payment plan may get a full recovery, there is a risk that the debtor may fail to oblige. In this situation, the agency negotiates a settlement agreement where the debtor gets a discount but pays the full discounted amount immediately.



Final Thoughts


Debt recovery agencies offer professional recovery services, including legal actions and specialized collection methods. The sooner you can identify debt and alert business debt collection services, the quicker the debt can be resolved. You can count on a reputable debt recovery agency to determine the ability of the business debtor to satisfy the delinquent account.

4 Ways Account Receivable Collections Benefit Businesses

By nat rosasco • January 3, 2020
Four Reasons Account Receivable Collections is Best Left to Professionals Expert Insight An accounts receivable collection agency is staffed with professionals who know the best ways to solicit collections for delinquent accounts. This level of expertise can be impossible to come by if you’re attempting to handle collections in-house. But they can be the deciding factor between a successful recovery and a lost profit. In this way, agencies benefit businesses by having the knowledge and skills to more successfully collect owed payments. Faster Payments Accounts receivable collections agencies are also adept at getting you the payments you are owed more quickly. By employing proven techniques and by being able to negatively impact a debtor's credit score, past-due accounts are more likely to be paid by the delinquent party. In the event that payment is unable to be secured, a professional debt collection service can provide additional support that can allow you to deduct the lost amounts during taxes. Improved Documentation Account receivable collections firms are also able to provide meticulous documentation of their collection attempts. This allows you to retain proof in the event you decide to claim a tax deduction based on the lost payments. In the event of an audit, you’ll have proof of attempts to show the IRS and prove legitimacy. This documentation can also help in the event a customer decides to sue. By being able to present proof of legal and legitimate collection attempts you can absolve yourself of wrongdoing and win almost every case. Increased Focus Working with account receivable collections can also allow your own staff members to focus on their current jobs and tasks, instead of being sidetracked in an attempt to track down delinquent payments. This can cause productivity to suffer and has the potential for legal trouble if you’re unversed in the laws regarding collections. In this case, it’s best to let your staff focus on their own jobs and leave the collecting to the professionals. Professional collection agencies can benefit businesses of all sizes and of all types. Featuring many different plans, some firms will work based on a flat fee while others will work on commission. Depending on your needs, speak to a collection service about what programs they offer. Collection agencies are the best way for businesses to collect unpaid debts. If you’re tired of struggling with collections, consider turning to the professionals and experiencing these benefits first hand

How Business Debt Collection Services Benefit You

By Nick Zatta • December 31, 2019
Consumer debt rose to 3.95 trillion in September 2018. If your business is owed money in delinquent payments, you know the struggle of trying to collect the due amounts on your own. This process can be difficult for businesses and even has the potential for legal problems if not handled correctly. If your tired of trying to collection on your own, here’s why you need to hire professional business debt collection services. The Top Five Benefits of Business Debt Collection Services Legal Backing A professional debt recovery agency understands the laws involved in successful debt collection. This enables them to recover debt, or make attempts, without risking legal fall back from customers. Customers can sue for a variety of reasons, and if you don’t know the laws you could get up losing out. By allowing a debt collection agency to act on your behalf, you help protect yourself and your business from any legal fallout. Successful Recovery Business debt collection services have experience collecting debts, and working with them can significantly increase the chances of payment. This is because they know the most effective techniques to use, and also have the ability to negatively impact a debtor's credit score for up to seven years. The threat of lowered credit can sometimes be enough to make debtors seek repayment plans. Flexible Options Debt collection services are also great because they are flexible enough to work with various different business types. For instance, some can be hired for a flat fee, while others work off of commission. If you’re interested in hiring business debt collection services, speak to them about the different programs and options they offer to ensure you get the right services for your business. Documentation Records will be made of every collection attempt made by a collection service. This benefits your business by giving proof of attempts that can then be used to claim the debt as a deduction when you file taxes. These documents show the IRS that multiple legitimate attempts were made before you claimed the deduction. In the event of an audit, the IRS will be able to see these documents and won’t be able to penalize you. Faster Payments Business debt collection services also tend to make people pay faster. Due to their expertise, they are able to track down past-due clients and make the necessary collection attempts needed to get them to pay. This can be by setting up payment plans with them or by impacting their credit score. Either way, you’re more likely to get paid sooner than if you were to attempt collection on your own. Debt collections services can save businesses a lot of headaches, and if your business is struggling with delinquent payments, consider reaching out to a professional collection service and seeing that their expertise can do for you.

The Benefits of Working with a Professional Collection Agency

By Nick Zatta • December 3, 2019
In 2016, debt collection services collected a combined total of $78.5 billion for businesses who would have otherwise lost out on profit. While you might not have considered partnering with an accounts receivable collection agency before, the truth is they can be a valuable asset to business owners across the United States. If you’ve been struggling to collect delinquent payments, here are a few reasons why you should hire a collection agency. Taking the Burden Off of Your Business Calling every delinquent customer yourself, or designating members of staff to do so, can eat up a lot of time in a day. This takes the focus off of other tasks and can negatively impact interactions with other customers because they won’t get the adequate attention that they deserve. By hiring an accounts receivable collection agency you help save your staff time and leave this task to the professionals. Time saved this way can even be used working on improved credit procedures to help prevent future debtors from abusing your current system. Improves the Likelihood of Payment An accounts receivable collection agency knows the tricks of the trade. They’re trained in professional collection techniques and know-how best to get through to debtors. Debt collectors also know how to use collection laws to their advantage, protecting you from legal fallout, and better ensuring that debtors can’t try and use collection attempts against you or your business. Additionally, collection agencies are able to negatively impact the credit scores of debtors for up to seven years. The threat of this alone is often enough for people to set up payment plans. Expert Insights An account receivable collection agency can advise you on every aspect of the debt collection process. They may also be able to provide insight into financials and how best to tailor your payment protocols to promote on-time payments. Collectors know the process and can provide valuable insight that you can’t find anywhere else. Legal Protection Collection agencies are well versed in the laws and legal processes of debt collection. Without their aid, you could risk accidentally infringing on a debtor’s rights and end up in a legal battle. Additionally, if you’re forced to go to court over an uncollected debt, a debt collection agency will be able to provide documentation and proof of lawful collection attempts. This documentation also comes into play should you file the debt as a tax deduction. If audited, this documentation will serve as proof that attempts were made before you claimed the deduction. Furthermore, if you do decide to take a collection claim to court, a collection agency can take care of most of the process for you. In some instances, they will even provide their own lawyers to represent your claim. This not only takes a great deal of the burden off of you and your company, but it can result in a great chance of success overall. If your company is struggling with unpaid debts, consider these benefits and contact an accounts receivable collection agency near you. The longer you hold off the less likely it is that the debt will be collected. If you’ve got outstanding accounts that are delinquent more than 90 days, now is the time to side with the professionals.
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