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4 Ways Account Receivable Collections Benefit Businesses

Fri, 03 Jan 2020 15:07:08 GMT

Over 70 million Americans had a collection attempt between 2016 and 2017. As more and more account receivable collections pile up, businesses without the expertise needed to collect could risk losing thousands of dollars to wayward debt. For this reason, working with debt collection services is crucial for ensuring that your delinquent accounts receive the payment they are owed.

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

Tue, 31 Dec 2019 17:02:12 GMT

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

nick.zatta@logicalposition.com (Nick Zatta) — Tue, 03 Dec 2019 20:33:17 GMT

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.

Stop Struggling with Collections. Why Your Business Needs Professional Debt Collection

nick.zatta@logicalposition.com (Nick Zatta) — Tue, 03 Dec 2019 20:30:17 GMT

Payments for goods and services are important for keeping any business afloat. However, sometimes customers fall behind or otherwise try to get away without placing payment for the product or service they received. While we’d all like to think of our customers as being fair and honest, it’s important to have a fallback in case something goes array. To help manage this issue, your business should consider working alongside a receivable management collection agency.

A debt collection agency can be an important tool when it comes to receiving payment for debts owed to your business. On your own, it can be difficult to find time to write letters or call clients in an attempt to collect delinquent payments. A receivable management collection agency takes this burden off of your shoulders and instead handles all debt related communication attempts. Overall, 29% of all debt collected by a debt recovery agency is received in under 90 days. This alone should sound appealing to most business owners; however, if you need further encouragement, here are a couple more significant benefits these agencies can provide.

Protection from Legal Fallback

Debt collection is stipulated by many different laws, and if you’re unfamiliar with these laws, you could risk legal trouble if a customer feels their rights have been violated. Debt collection and recovery services understand these laws, and as such can make the proper collection attempts while being sure to stay on the right side of the law. This can help you both receive payment faster, and be protected from any legal action ornery customers might try to take.

Successful Collections

A receivable management collection agency also has the experience to successfully collect debts. The odds of successful collections significantly increase when you have a debt recovery team on your side. Because of this, you can focus on running your business, something that could be significantly impaired were you to try and track down individual debt by yourself. Additionally, collection agencies know how to coerce debtors into paying what is owed. One specific way being by negatively impacting a delinquent individual’s credit score for up to seven years. Often times the threat of credit score impact is enough to make debtors pay what is owed.

Flexible Programs

Collection agencies know that no two businesses are the same. Because of this, they can offer different programs to better suit your collection needs. Some offer a singular flat fee for their services, while others operate via commissions collected per successful collection. When speaking with a collection agency representative, ask them about the programs they offer and see which options would work best for your business model.

Proper Documentation

Every communication attempt is recorded by a collection agency. This is helpful should you decide to sue a debtor in the future as proof of collection attempts will be available. To a court, this demonstrates that you have exhausted other methods of collection before bringing the claim to a lawful authority. Additionally, these documents can also allow you to claim the debt as a tax deduction. During an audit, you can use these files as proof of collection attempts before resorting to claiming the deduction.

Faster Collection

Overall, when working with a debt collection agency, you’ll find that delinquent individuals tend to payout faster. No one wants a debt collector hounding them, and in the end, will find it easier to set up payment arrangments than attempt to dodge what they owe. This not only takes the burden off of you, but it allows your business to receive the money it is rightfully owed.

If your business is struggling with managing debt collection, consider contacting a professional receivable management collection agency. They can help collect your debts quicker, protect you from legal fallout, and offer proper documentation should your case ever go to court. As stated above, many also offer specialized programs so that you can be sure to find an option that works best for you and your business.

The Effectiveness of Debt Collection Agencies

Sat, 26 Oct 2019 15:56:00 GMT

Creditors give loans to millions of citizens, and thus credit companies are too busy to follow up on the debtors. For this reason, creditors are hiring debt collection agencies to collect debts that are 60 days past the agreed period. Therefore, the agencies act as middlemen collecting any delinquent loans.

Debt collection agencies communicate to debtors via calls, letters, or emails. The debtor does not communicate to the creditor, but instead, they agree with the agency on how the payment will be made.

The government has been listed as the top creditor that 16% of all debt collected by debt collection agencies in the US are government-related debts. For this reason, it has been a common practice to work with a government collection agency for years.

Business Debt Collection Services

Many people who want to start a business lack enough capital, and thus they opt to get a loan from creditors. However, the debtors may delay paying, or the business may fail to bring forth profit in time for the business person to pay back. In this case, if you are a creditor, it is vital to hire a collection agency. Business debts are usually high, especially if it is a high-end business. Thus, it is essential to work with a skilled government collection agency or a private one.

Business debt collection services include sending emails to the business and visiting the business place to agree on when the business person will pay. This is a lot of work for a creditor who has more than one hundred debtors. Debt collection agencies have many employees who can handle all the debtors. A government collection agency that works with businesses ensures that all the debt has been paid and also checks for the licenses.

Receivable Collection Services

Uncollected receivables usually cut into the flow of the creditor, leading to a reduction of funds. Debt collection agencies have the account receivable collection service, which ensures you collect all your receivables.

Government Collection Services

A government collection agency can work independently or through lawyers. Make a wise choice on the government collection agency that you want to work with to get your loan back. If your debtors are ignoring you, then work with those who already have attorneys at hand to give you legal help.

Qualities of a Good Collection Agency

It is vital to work with a debt collection agency that collects all types of debts, including credit card debt, student loans, medical loans, personal loans, car loans, and unpaid utility. Debt collectors are trained to collect these loans without making the debtor feel obliged. A good collection agency has debtors who are well trained on the repercussions of not paying loans. They will explain them to the debtors who will, in turn, pay to avoid being caught on the wrong side.

When the debtor refuses to pay even after a negotiation has been settled, the debt collector will refer the case to an attorney who will file a lawsuit against the customer. In some cases, debtors move to new places or states without giving the creditor the new address or contact. If you're in such a problem, work with a debt collection agency that has the skip tracing tool. This tool locates the financial and contact information of the customer, and thus, tracking them will be easy.

Agencies Buying Debts

Some creditors group various debts as unlikely to be collected. Therefore, various debt collection agencies buy these debts from the creditor. This means that the agency is no longer a third party collection agency, but the creditors. However, certain factors are considered when buying debts. The debt should not be that old, and no other collected should have worked on it.

Many debt collection agencies usually bid on promising debts, paying on average four cents for every $1 of debt face value. Mortgage debts are worth more than utility ones. All the money the agency collects is kept, and none is sent to the original creditor since they bought the debt.

Debt collection services are gaining popularity, as many creditors are using them. Working with an agency for collection for government was common, but nowadays, private creditors also work with debt collectors. Debt collection and recovery services have tremendously improved the business of creditors.

A Brief Guide on Services Provided by Debt Collection Agencies

nick.zatta@logicalposition.com (Nick Zatta) — Fri, 25 Oct 2019 16:32:57 GMT

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.

What You Need to Know About Debt Collection Agencies

Wed, 16 Oct 2019 20:51:20 GMT

Recovering outstanding debt from your customers is a difficult but essential part of running a successful business. As a business owner, when it comes to debt collection, you have a variety of options to choose from. You could try using effective communication skills and just contact your customer directly and ask for payment since they could have forgotten or they’re going through a rough financial patch. This could go a long way towards retaining loyal customers.

However, that may not always be the case. You may be required to seek a business debt collection services agency to help you recover the money owed. In 2016 alone, a total of $78.6 million in debt was recovered by debt collection agencies. This reflects their effectiveness in debt collection as well as keeping you in business should you require their services. Here is a detailed guide to help you understand more about a debt collection agency.

How They Operate

A debt recovery agency is a company licensed to recover funds that are past due on behalf of creditors. Often, a creditor will seek their services after multiple failed attempts to recover their account receivables. It is sometimes referred to as a third party collection agency as it was not part of the original contract.

The business is required to forward the names, details, and the location of defaulters to the debt recovery agency. The agency offers business debt collection services at approximately 20-45% of the total outstanding funds they recover from a defaulter. The agency then collects the debt and turns over the funds less the commission agreed upon.

Key Roles and Responsibilities

A debt collection agency offers vast experience and knowledge about debt collection that you as a business owner may not have. They can help you correct bad debt by making account receivable collections to help you maintain a good and constant flow of income.

Aside from offering business debt collection services , a top agency such as an accounts receivable management collection agency can also monitor credit risks and can detect late payments on time as well. This could help you plan for your business when it comes to projecting the amount of capital required to sustain it.

The Debt Collection Process

Usually, the time after which a debt recovery agency is involved is from 90-180 days from the day of signing the contract between the creditor and the customer depending on the owner’s policy and personal preference. The debt collection agency then contacts the debtor using effective methods that avoid harassing or violating their rights as a consumer.

If they fail to reach the debtor with the information they have, they then proceed to use computer software and private investigators to search for the debtor’s assets, bank accounts and establish their ability to pay. They then take the case to court where a ruling is passed giving clear payment arrangements or property confiscations to enable recovery of the debt.

Debt Recovery Regulations

Any agency offering business debt collection services is bound by the Fair Debt Collection Practices Act that aims to protect both the creditor and the buyer. As such, a debt collection agency is not allowed to collect an old debt where the debtor has filed for bankruptcy or illegally seize property without a clear directive from a court.

The agency is allowed to collect a debt on which the statute of limitations has ended, which is usually between 4-6 years from the day of default. They are also allowed to contact the debtor at specific times of the day for at most 3 days a week.

Conclusion

For business owners, outsourcing the responsibility of debt collection to companies offering business debt collection services has proved to be an effective and reliable tactic in an attempt to maintain good cash flow in the business. A credible debt collection agency is dedicated to protecting the needs of a business owner in such an event.

Has Your Freelancing Business Has Been Scammed? Red Flags to Look For

Tue, 08 Oct 2019 00:00:00 GMT

In today's world, freelancers are abundant. From photographers, graphic designers, writers, and video editors, more and more people are starting their own business doing what they love over the traditional nine-to-five. And who can blame them? It comes with some great perks. You get to set your own hours, travel whenever it suits you, and be your own boss. It sounds ideal; however, this setup is not without its downsides and flaws. If you are a freelancer who fears getting scammed, continue reading to learn how to spot a potential scammer and what to do when you fear it may be too late.

Scammer Red Flag #1: The deal seems too good to be true

This is the first thing you should watch out for when conducting business as a freelance creative. If the potential client lists a deal or rate that sounds way too good to be true, it probably is. You may never hear from them after the work has been delivered, especially if you fail to protect yourself with a contractor. This can be frustrating, disheartening, and demotivating, as well as embarrassing.

Scammer Red Flag #2: They continue to put off payment

If the client continues to make excuses about paying you on time, odds are good that you may never see the money you're owed. You can waste your time sending email after email or blasting out a string of unpaid invoices every day -- but this may not yield the results you want. Unfortunately, you may not always know that a client won't make good on their promises until you've already invested your time in creating the deliverable.

Scammer Red Flag #3: Your conversations are riddled with typos

While you shouldn't be too judgmental of someone who misses a one-off typo, you should pay attention if you notice that their correspondence is riddled with grammatical and spelling errors. You could very well be speaking with an automated bot or someone living outside of the country. You are free to take on clients overseas, but you must make sure they are completely legitimate before taking them on as a client. Some of the most well-known scams affecting freelancers today are being perpetrated by people outside the United States, and many of their messages contain questionable spelling and grammatical errors.

What to do about uncollected debt: hire a collection agency

Despite your best efforts, you may still have to face the reality that you've been swindled. Though you may want to throw in the towel after the third unanswered phone call that day, understand that there is a way you can fight back more efficiently. If you have fallen victim to this situation, call an accounts receivable management collection agency to help you secure your hard earned money.

How an accounts receivable management collection agency can help you collect debt

A third party collection agency helps the independent contractor by serving as the middleman. They place calls and send letters on behalf of the contractor or business owner. Roughly 29% of debt collected by these agencies is aged 90 days or less, so do not hesitate to call.

Don't make debt collection your full time job

Running your own business is already a stressful load. Between creating content for your clients, and pitching to new ones, no contractor should have to spend their day focused on debt collection. While you can do your best to avoid suspicious clients and scammers in the first place by noting some of these red flags, an accounts receivable management collection agency can serve as your middleman if things go wrong.

How to Make Debt Collection Easier Today

Fri, 20 Sep 2019 16:44:22 GMT

There are 7,837 debt collection companies operating in the United States as of 2019. That is a marked drop from the number in 2017, which was 8,513. In the last decade, the total number of agencies has declined as the economy has gotten past the effects of the 2008 financial crisis. That being said, there is still a significant need for agencies that can help creditors collect on delinquent debts.

Outsourcing your collection efforts to firms providing debt collection and recovery services will help you focus on what you do best. Here are a few tips to help you pick the right agency to succeed in your collection efforts.

1. Identify the Firm's Area of Specialization

The segment that a firm offering debt collection and recovery services focuses on is essential in ensuring that you get a prime return on your investment. Thus, the first thing you should do when researching a potential debt collection agency to work with is assessing where their strength lies. You should only shortlist firms with the skills to recover funds in your area of expertise.

Say you need to recover overdue funds from the government long after you've offered your services. Your best approach would be to hire an accounts receivable collection agency that concentrates on dealing with government agencies. Such a company has relationships it's developed over time with key players that aren't accessible to outsiders. Their leveraging these exclusive relationships will help unlock your funds.

2. Confirm Its Accreditation Status

Every state has its own rules and accreditation for debt collection and recovery services. It is your duty to ensure that you only deal with a debt recovery agency whose licensing is up to date. Over 50% of agencies nationwide aren't authorized to collect or recover debts in all 50 states. Choosing to work with firms that are operating legally also helps you protect your business. If a customer knows that you are using an unauthorized agency, they can (and most probably will) take you to court.

Some of the things to look for when checking out a firm's authorization include:

Health Insurance Portability and Accountability Act (HIPAA).
SSAE18 Type II SOC 1
PCI DSS

In addition to complying with these standards, a collection and recovery agency also needs to abide by the Fair Trade Collection Practices Act (FDCPA).

3. Are They Insured?

When you hire a collection and recovery agency, there is always a chance that a debtor might decide to sue both you and the agency. In such instances, you need to limit your exposure to any liability for hiring the debt collection service agency in question. When you're considering hiring any firm first request for proof of insurance. It should come in the form of a valid Errors and Omissions insurance policy. Don't forget to call the listed insurance provider as well to validate the proof of insurance you receive.

4. Check If They Use 'Skip Tracing'

Not every debtor you have will play nice, and you should put contingencies in place for that. One way to pre-empt debtors who run off with your money to another state is to hire a collection agency that uses skip tracing. Skip tracing is the process an agency will use to locate a debtor who has fled to a different geographical location. When you have people or organizations that owe you money and aren't returning or answering your calls or emails, then skip tracing becomes a useful tool for recovery.

A skip tracer will use various databases to locate your debtor. Sources of information they will use include public records databases, utility bills, criminal background checks, loan applications, credit reports, and even job applications.

Hire the Best Debt Collection and Recovery Services Agency

As an entrepreneur, you will run into delinquent debtors who will be unable to pay for one reason or another. Consequently, you will need to lean on debt collection and recovery services to get your money and keep the business going. Ensure you know the markers of an excellent agency to engage so that you can recover your debts with your reputation still intact.

Look For These Key Signs When Looking For a Dependable Government Collection Agency

Fri, 06 Sep 2019 16:00:59 GMT

We put our faith and trust in others when we require services outside of our breadth of knowledge. From hair salons to fine eateries, dependability is what leaves us satisfied and coming back for more.

The same can be said for dependable government collection agencies . When dealing with something as serious as your finances, you need this reliability more than ever.

A dependable government collection service stands out above the others. To make your life easier, and make stress regarding debt collection a thing of the past, look for these signs when determining whether your potential debt collection agency is the right fit for you.

Dependable Government Collection Agencies Are Transparent

Debt collection agencies are useful for independent contractors and both large and small-scaled business. When a customer skips out in paying their invoice, leave it to the collection agency to take care of these matters. When deciding to work with a dependable agency, make transparency one of your most pressing concerns. Do they answer every single one of your questions honestly and timely?

Dependable Government Collection Agencies Are Legit and Established

You want to work with professionals who take their business as seriously as you do yours.

Make sure your potential agency is not only transparent about their services but also established. Do they have a website? Ask about their references and past clients also. These factors will give you a good idea of the firm’s legitimacy and reputation. Having access to this information will also help you make an informed decision when starting the search for a quality firm.

Insurance

A firm can be transparent and established, however, dig into their insurance policy to narrow down your final decision. Errors and Omission insurance can protect you as well as the agency and this should also be a requirement on your list of potential agencies.

Conclusion

Working with a dependable government collection agency can speed up your productivity and enhance your life as a business owner or an independent contractor. Instead of having to track down and follow up every unpaid invoice, hire a collection agency. However, there are many firms out there and weeding through them all may prove to be a difficult process. Keep in mind though, that a quality firm is always these things:

Transparent.

Reputable.

And of course dependable.

Is It Time to Hire a Debt Collection Agency?

Thu, 01 Aug 2019 16:34:55 GMT

Americans seem to be struggling with debt more than ever. Between student loans, unpaid medical bills, and other financial woes, it's no surprise that roughly 70 million Americans were contacted about debts or were pursued by debt collection services between 2016 and 2017. But while you might be sympathetic to their struggle, the reality is that you, as a business owner, need to pay your bills, too.

Unfortunately, not every client or customer will be prompt with payment; in some cases, they may do everything they can to avoid paying their debts. And at a certain point, you might need a bit of help in obtaining what's owed to you. That's typically where debt collection and recovery services come in. Hiring a debt collection agency may seem like an extreme measure, but it's ultimately one of the most effective ways to ensure that you have the cash flow you counted on to keep your business afloat.

But how do you know when it's time to start thinking about your need for debt collection and recovery services? The following signs will indicate that you shouldn't delay this step any longer.

Signs It's Time to Hire a Collection Agency

Your Receivables Are Way Overdue: As time goes on, it becomes more difficult to collect the debt you're owed. That means that once the past-due date reaches the 90-day mark, you'll need to take action. It's extremely rare for a business owner to be able to collect debt after this point, and it may even be challenging for a debt collection agency to do so. However, the chances that your agency will be able to collect the debt will be much higher than if you were to continue trying to handle it on your own. This is especially true if you have several debts owed to you that are more than 90 days old. After three months of waiting, the time for being understanding has passed.

Your Business is Struggling Due to Owed Debts: When you're forced to chase down your debtors yourself or your cash flow problems persist due to moneys owed, your business will undoubtedly suffer. Your daily operations will likely be interrupted, as your customer service and product delivery may be impeded by the need to focus on the debts owed to you. You may even experience issues with being able to hire the staff you need or replace necessary equipment as a result of poor cash flow. You literally cannot afford to take these kinds of risks with your business. Although you may be inclined to DIY your debt collection, doing so is often to the detriment of your organization. By seeking help from the professionals, you can devote your energy to more important aspects of running your business and increase your chances of receiving what you're owed.

You Keep Getting Excuses or Delay Tactics: While customers who owe you funds may not be inherently bad people -- they may just have found themselves in over their heads -- people in desperate financial situations may not always act nobly. They may feed you excuses about your check being in the mail or they may say anything to get you off the phone. They may even mail checks to you that subsequently bounce or might seemingly disappear off the face of the earth. They might hope to buy themselves some time or to frustrate you so much that you give up on these debts. But if you're tired of being subjected to the run-around and simply want to get paid and move forward, working with debt collection and recovery services may be the best way. Making sure you have the upper hand in this scenario can make a world of difference.

Although you might not like the idea of hiring debt collection and recovery services to retrieve the funds owed to you, there are some situations that really leave you with no other choice. If you're struggling with the aforementioned points and need help retrieving the money clients owe you, we're here to take over. For more information on how we can help your business, contact us today.

What You Need To Know Before You Hire a Collection Agency For Freelancers and Small Business Owners

Thu, 01 Aug 2019 03:01:55 GMT

What Happens When You Hire a Collection Agency For Freelancers and Business Owners

No one ever thinks they’ll ever have to hire a third party collection agency.

But unfortunately, even small business owners can be scammed, lied to, or misled. Eventually resulting in frustration and in severe cases, financial trouble.

You can only do so much on your own. When you’re sick of the constant phone calls and emails—and your customer or client still won’t answer—it’s time to hire a third party collection agency.

When you hire a collection agency , you’re taking action by fighting for what your small business has rightfully earned.

It’s a necessary step, so if this is your first time, here are a few things you should know right off the bat.

There are many collection agencies to chose from

You don’t have to settle when it comes to choosing who you want to hire. Just in 2017, there was a total of over 8000 collection agencies in the United States. Go with an agency that fits your needs and makes you feel like a priority.

Consider the size of your business

Some agencies have different requirements for the type of clients they take on. These requirements can range from the type of industry you’re in, to the size of your business. So make sure to give them a call in case you’re worried about not qualifying for a certain agency you’re interested in working with.

This won’t be a drawn-out battle

A collection agency specializes in retrieving the money you’d thought you would never see. Check the agency’s list of services to be sure that they are the right fit for your business. Their services can range from:

Letter Writing

Debt Collection Services

Technological Skip Tracing Services

Collection agencies can even track hard to find clients. You’ll only need to be involved initially. The agency will ask for names, emails, phone numbers, and other details about their transaction history. So be prepared to give over as much information as possible to help the collectors.

There is a fee involved

A collection agency will usually take their share of the collected invoice as payment as a percentage. This can range from fifteen to even fifty percent. With most agencies, they'll charge based off how long the debt has gone uncollected.

You’ll find yourself less stressed

Now you’re caught up with what you need to know about a collection agency before you give them a call. As a freelancer or small business owner, your time is valuable. By researching fees and services, you’ll find and hire a collection agency that cares about you as a client as much as you care for your small business.

Avoid These Business Killers: Hire an Accounts Receivable Management Company

Thu, 25 Jul 2019 18:46:28 GMT

Business owners, beware.

These business killers can ruin your professional image so you want to avoid them at all costs.

If you started your business—whether it’s new or old, big or small—there were probably a lot of bumps on your road to success. Being an entrepreneur means always expecting the unexpected, and finding a way to be prepared, every single time.

Your finances are no joke, which is why an accounts receivable management company may be the thing you need to take your business to the next level.

Since you like to be prepared for the worst, here are a few financial situations you will avoid altogether when working with a reputable accounts receivable management company.

You will avoid late invoices

Hire a collection agency and your invoices will always go out on time.

Your money matters, but when you’re running a business, it’s easy to forget one out of the many things on your agenda. The last thing you want to happen is a late or forgotten invoice. That’s money out the window.

An accounts receivable management company will always bill and collect your invoices on time, so you never have to worry about not getting paid for your goods and services.

You won’t have to take action when payments are past due and a client refuses to pay

If your client has forgotten or refused to pay their invoice, leave it to your ARM firm to take care of it.

The stress from dealing with a difficult client can impact your day, or even your week, killing your productivity. So why take the chance?

You will avoid negative relationships with your customers

Collection agencies operate on a code of ethics. They will treat your customers like human beings, so that way they keep coming back to you.

You will avoid debt

This is the last thing you want to hear. While it’s on the severe end of the spectrum, it can happen to anyone who isn’t keeping track of their finances.

But a collection agency minimizes that possibility. They even have the numbers to back up that claim. In 2016 alone, debt collection agencies recovered $78.5 billion in total debt.

Who benefits from hiring a debt recovery agency?

Business debt collection services assist more than just business owners. These institutions are experienced. Though half of the total debt collected is health-care releated, these firms have expeirence with other large-scaled corporations and institutions such as:

credit unions

banks

academic institutions

internet providers

electric companies

hospitals and healthcare providers

Conclusion

These are just a handful of frustrating situations you will avoid by finding and hiring an accounts receivable management company. Avoid pulling your hair out over debt, and forgotten and unpaid invoices. Increase your productivity and profits, while decreasing your levels of stress.

As a business owner, it’s up to you. Are you ready to eliminate those business killers, take on that next step, grow your business, and achieve newfound levels of professionalism?

If so, hiring an accounts receivable collection agency can and will make all the difference.

5 Reasons to Hire a Debt Collection Agency

Sat, 20 Jul 2019 02:02:04 GMT

Did you know that government-related debt makes up over 16% of all of the debt collected by collection agencies in the United States? That is a lot of debt to owe the government. While no one enjoys performing collections for government , government collection agencies do exist along with other debt collection services.

The trick is knowing when you as a business need to hire a collection agency to get the money you are owed from consumers. The problem is that at some point it needs to be done. With that in mind, read on below for a few of the top reasons you need to hire a collection agency whether it’s for performing collections for government or for other collections altogether.

It Has An Impact

Whether it’s a dependable government collection agency or debt collection and recovery services, having a third-party step in to collect debts for you can have quite an impact. While your customers might ignore your statements and toss them in the trash, when that third party collection agency calls, they suddenly get the urge to pay their debts off.

It can Actually Boost Your Name and Your Brand

Using a third-party agency to collect your debts may actually help to boost your name and your brand. They can flush out the reasons for your customer being unhappy with your business and find out the issue with repayment they might have. In this way, it helps you to fix the problem, so hopefully, you don’t have the same one in the future with someone not paying just because they are angry with something your business has done.

It Saves You Time

Whether it’s collections for government or collections for a private company, hiring a third party agency is going to save you a ton of time in the long run. You wear many hats as a business owner, the last thing you need to do is try to perform debt collection services as well. Hiring someone to take care of debt collection for you will save you time, as you can concentrate on what’s important to your business, bringing in more paying customers.

It Saves You Money

If you’re already dealing with trying to collect money from customers that owe you, the last thing you want to do is pull an employee to work on debt collection. That ends up costing you money because your employee isn’t doing the job they were hired for. You also don’t want to spend the money to hire someone, because you run into another weekly paycheck, benefits, and in many cases even having to pay insurance. It’s best just to hire someone who works at a third-party agency to do the job for you and save you money in the long run.

A Particular Set of Skills is Needed

Finally, being a debt collector requires a certain set of skills and most business owners don’t have those. Not only do you have to be tenacious, but you also need to have a thick skin, because many debtors will fly off the handle. You also need to be a good negotiator and able to track down someone who owes you money. Why not leave that in the hands of the professionals who have honed those skills and know how to use them effectively.

Being owed money is never a good thing, whether it’s for the government, medical bills, or a credit card. The best thing, however, is to hire the professionals to take care of tracking down the debtor and trying to make arrangements to get you the money you are owed. It’s better for you and your customer in the long run.

6 Tips to Find the Best Debt Recovery Agency

Wed, 19 Jun 2019 18:46:05 GMT

Current reports show that debt recovery agencies recovered more than $78 billion in 2016. The number is a clear indication that the services offered by debt collection service companies works and you should try if your debtors have exceeded the payment period that you had agreed upon. However, not all debt collection services work, which means you have to get a company that works for your interests and is ready to recover your debts. Here are some of the factors you need to consider before you hire a debt collection service.

Agency Accreditation

Anytime you are hiring a company for debt collection service , make sure that you hire a company that has been accredited by the necessary bodies. A debt collection agency is required to have authorities from regulatory bodies and other union organizations in the same industry. A company that is accredited has been following rules and regulations, which means that it has been conducting legitimate business. Avoid the companies that have been operating on the back street because they are not accredited and therefore, don't offer legal services.

Agency Reputation

Your debt recovery agency should have the highest reputation possible. Collecting your debts through an agency does not mean that you are creating enmity with your customer. Therefore, a customer that conducts itself with respect is the best. You don't need an organization that'll damage the reputation of your organization. You still need the customers to continue buying your goods and services. Companies that have no reputation might approach your debtors aggressively, which is likely to damage your reputation.

Best Fit for You

You should concentrate on getting an accounts receivable collection agency that is best fit for you. This means that the company has previously collected debts in your area of operations. For example, if you operate in the insurance industry, the company should have previously collected insurance related debts. That's how you will know that the company understands what it takes to operate in your sector. The firm will also be able to understand the jargon and the laws used in the insurance sector. This prevents a situation where your debt recovery company makes a mistake in the debt collection process rendering you some serious problems.

Success Rate

A debt collection agency is a very complex and sophisticated process. Some companies might have never been successful in their attempt to collect debts on behalf of their clients. Before engaging in any debt collection service, make sure that you see the success rate of the company. For example, you should be interested in how many days, weeks, and months a company takes to collect a debt and how many times the company has been able to collect debts within the stipulated period.

Debt Collection Practices

As highlighted earlier, the reputation of your company is of the utmost importance. Therefore, you want a company that uses professional debt collection practices rather than wars. A company that favors dialogue is better than a company that engages your customer in a legal battle. Although your accounts receivable management company must be firm in its practices, it should be considerate and cordial. Make an effort of getting a collection agency that reminds your debtor to pay the debts as agreed and goes further to formulate a simple plan of how the debtor can pay the debts easily.

Collection Fees

The amount of money you will be using to collect your debts is a major factor that you should consider. One of the aspects that you need to incorporate is the no collection no commission. You cannot pay for services that have not been rendered.

Additionally, the size of the money you are collecting is also an important factor that should be put into considerations. You cannot pay more than what you will be collecting. The fees need to be significantly small as compared to the amount you are collecting. Always hire a debt collector who will provide maximum services at your fee.

Outsourcing for debt collection service is a common aspect of the United States. Therefore, you should outsource the services of a professional company that has been collecting debts for a longer period. The company should act on your behalf and therefore, should treat your customers with dignity and respect they deserve.

Benefits of Accounts Receivable Debt Collection Through an Agency

Thu, 13 Jun 2019 14:12:04 GMT

In the normal course of doing business, there are times that you have to deal with invoices that run due. When this happens, there is a need to try several ways to ensure that the funds owed are recovered. In the year 2017 the registered number of debt collectors here in the U.S. was 8513. Debt recovery should be done as soon as possible to ensure that business does not experience challenges with running their operations. Also, it has been noted that the sooner an accounts receivable debt collection process is initiated, the higher the chances of fast recovery. As a result, it is important to explore the options your business has when it comes to debt collection.

One of the popular ways of handling accounts receivable debt collection is through the use of an agency. This allows professionals to deal with the process as you wait for results. In this post, we will look at some of the benefits that businesses can achieve with the use of their services.

Legal liability

In the past, debt collection used to be rough and involved violations of rights. As a result of increased cases of harassment, several laws were enacted in an attempt to regulate the industry. Without adequate experience in the field, it is easy to go against these regulations. The result of this would be to face legal consequences, and this would be an expensive experience. To avoid facing such challenges, dealing with an experienced debt collection agency would help with the situation. This is because the legal liability lies with them, given that they are the one allowed to operate.

Flexibility

The requirements of different businesses vary when it comes to accounts receivable debt collection. As a result, it is important to establish what works best for a particular business. With a debt collection agency, the needs for different businesses are well known given that this is what they deal with regularly. In most cases, you will find that the agency has various plans, and it is likely one will be suitable for your type of debt collection. For instance, there may be a flat rate fee or a commission on the recovered debts.

Level of success

A debt recovery agency has experience in handling the processes involved during debt collection. As a result, chances of success when it comes to payment of debt are much higher. With other debtors, upon noting the involvement of a third-party, there is a tendency of giving the matter more weight and committing to making payments. This is even if the delay in payment was occasioned by some external factors. Besides, debtors are also more inclined to respond positively to an accounts receivable collection agency to avoid listing which can affect their credit score.

Verifiable documentation

With an account receivable debt collection agency, all the communications between them and the debtor are well documented. Such communications are of great importance when it is required for a business to prove that there were adequate attempts to recover the funds. As a result, should you wish to pursue the debtor legally on the matter, these correspondences can be used as evidence. The same also applies in the case where you were to consider a bad debt as a tax deduction; the same documentation would be used for verification and as proof.

Faster response

The use of debt collection agencies typically accelerates the speed at which a debtor responds to the demand for payments. As noted above, there are measures and programs offered by the agencies that make debtors want to collaborate. The faster a debt is repaid by a debtor, the better it is for the business and the higher the chances of continued business with the debtor.

Conclusion

Accounts receivable debt collection is important for any business. However, when this is left on the hands of the business owner, it may be a challenge to recover most of them due to the numerous tasks on their hands. This makes a collection agency the best choice and based on their numbers.

4 Common Accounts Receivable Collections Mistakes

Sun, 26 May 2019 01:01:01 GMT

Managing your business' account receivable collections can be a challenging task. As you are probably aware of by now, it can be difficult collecting payment for all of your outstanding invoices. Account Receivable collections agencies can help you sort things out if the situation gets out of hand, but before that, there are some mistakes you should try and avoid so you don't need to call a debt collection agency in the first place. Below are four of the most common mistakes that businesses make with their accounts receivable, and some tips for how to avoid them.

Mistake 1: Not Researching Customers Thoroughly

One of the most common mistakes that businesses make is going into business with customers without any idea if they are a reliable debt payer. Industries such as healthcare leave themselves susceptible to late payments by invoicing customers after providing services. In the U.S., the average outstanding medical bill is over 500 dollars, so these late payments can really add up.

Before putting yourself in a position where you will need a reliable accounts receivable collections agency, you should try to research your prospective customers. Many businesses ask new customers to fill out a credit application prior to conducting business with them. Credit applications can give you a strong sense of how reliable this customer will be in paying their debts, and help you avoid needing to hire an accounts receivable collection agency.

Mistake 2: Getting Distracted

Depending on the set-up and size of your business, you might have full-time accounts receivable employees, part-time accounts receivable staff, or someone in the business who simply handles accounts receivable collections on the side. As anyone who has worked on accounts receivable collections knows, it can take a lot of work to track down payment for just one invoice. Many businesses make the mistake of letting accounts receivable late payments stack up, because there is simply too much to do. But how can you expect to run a successful business without being paid?

The best way to avoid letting your accounts receivable get out of hand is to hire full-time staff to handle this portion of the business. While this is certainly the simplest solution, we understand that businesses do not always have the resources to assign someone to this position full-time. Aside from having ample staff on hand, it is also important how you go about collecting payments, and optimizing this process for efficiency.

Mistake 3: Allowing for the Snowball Effect

Don't let your small problems turn into big ones. One of the most common reasons that businesses find themselves in a position where they need to hire a collection agency is that they let things slide with customers. If, for example, you have invoiced a customer on 30 day terms and the customer fails to pay you in that time period, do not wait another second. If a customer is willing to leave an invoice unpaid for an extra day, why would they not be willing to do the same for a year?

Successful account receivable collections is all about being proactive and timely. This not only means contacting customers the moment their invoices become late, it also means sending reminders before payments become late, and engaging in regular communication to ensure that the customer understands they are being monitored closely. Letters, emails, and phone calls are all appropriate ways to communicate with the customer about due dates and payment timelines. If you want to avoid hiring a debt recovery agency, establish an authoritative tone with the customer. This ensures they understand that despite your excellent and friendly customer service, you are still in business with them and expect to be paid.

Mistake 4: Waiting Until the End of the Year

Way too many businesses allow their accounting to wait for the end of the fiscal year. For some aspects of business finance, this strategy works fine. But when it comes to account receivable collections, you cannot afford to wait this long on debts you are owed. Avoid letting account receivables pile up by managing your accounts throughout the year. Tools like spreadsheets and data analysis are extremely useful in keeping on top of outstanding accounts.

Deciding Whether to Hire a Collection Agency for a Government Debt

Fri, 17 May 2019 15:09:36 GMT

In September 2018, consumer debt in the U.S. was reported to have reached $3.95 trillion, while the public debt is a whopping $16.5 trillion.

A growing concern for the government is the steady increase of the U.S. public debt. Recovering delinquent debt has become necessary for the government to continue to provide services to the public, stay within designated federal budget guidelines, and fund various programs.

As a result, across the country, government agencies are hiring private debt collection and recovery services to retrieve unpaid debt. There are many reasons government entities are outsourcing the collection process to third-party companies that specialize in debt collection. The main reason being the rate of success that a government debt collection agency can achieve.

A government debt collection agency acts as a third party collection agency for state and local fees that individuals owe from taxes to unpaid parking tickets. Offering direct and effective debt recovery, collection, and consulting services, a government collection agency has proven strategies tailored to the specific type of debt you seek to recover in order to maximize recovery efforts and reduce the overall deficit.

Here are some signs that help you determine whether you should hire a collection agency:

Tracking down a disappearing act. Debt collectors are skilled in tracking down a person who may difficult to find due to change of address or change of phone number. We are able to quickly and efficiently locate the most recent phone number and address and other pertinent contact information.

Debt collectors are trained negotiators. We can work within a person's limitations or inability to pay and find an agreement that works for both parties.

High success rate with debts way past due. About 71% of the debt collected by recovery agencies is delinquent by 90 days or more. If a debt is over 90 days past due, it is a good idea to hire a debt collector who has a much higher rate of success in collecting debts that are past due.

Repeated refusal to pay or flimsy excuses. Another great reason to hire a collection agency. Whether its court collections, account receivable collections, or other collections for government, let a dependable government collection agency handle it.

After you've decided that you are ready to hire a government debt collection agency, be sure to research different companies to make sure you find the right one to meet your needs.

3 Signs of a Reputable Debt Collection Agency

Thu, 18 Apr 2019 01:50:29 GMT

When customers fail to pay your company for products or services they received, this can have a negative impact on the cash flow of your business. If you've been unsuccessful in collecting the funds, it may be a more effective use of your time to hire an account receivable collections agency to focus on collecting the past-due fees for you.

In 2016, debt collection agencies were able to recover roughly $78.5 billion in debts. Healthcare-related debts account for 47% of all the debt that collection agencies recover. Another 16% of debts collected were government-related. With over 8,500 debt collection companies in the United States to choose from as of 2017, how should your company go about selecting a debt recovery agency? Business News Daily lists three signs that you've found a reputable company.

1. Experience.

Look for a company that has many years of experience in collecting debts, and make sure to ask about the type of training their collectors have received. The Association of Credit and Collection Professionals (ACA International) recommends that you choose an accounts receivable collections agency with ACA-designated collectors. This demonstrates that their collectors possess the necessary skill and ability to effectively collect debts using procedures that are in compliance with all state and federal regulations.

2. Industry Knowledge

Companies in a wide variety of industries require assistance with debt collection. Therefore, Credits, Incorporated believes that it's important that the debt collection agency you choose has an in-depth understanding of your industry in order to offer the best solutions for your company. This will also enable you to spend your time focusing on your business while allowing the agency to take care of debt-collection for you.

3. Services They Offer.

It's also wise to select an agency that offers comprehensive services to meet all of your company's needs. According to Credits, Incorporated, this may include training and education, legal counsel about legal verdicts and collections, early-intervention strategies, and customized reports.

Your company's cash flow depends on timely payment from your customers for products or services that have been rendered. When you haven't succeeded in recovering payment, it's wise to hire a collection agency. By asking about the training and experience of their collectors, their knowledge of your industry, and the services they offer, you'll be able to choose a reputable account receivable collections agency to assist you.

7 Tips for a Better Experience with Debt Collection

Wed, 10 Apr 2019 14:57:59 GMT

With the fluctuating economy, consumers are having more and more trouble paying their bills. It has been estimated that at least 70 million people across the United States were contacted by a debt collection services company in 2016. If your business needs to reach out to people to get the money they owe you, there are ways to make that process go better.

Do your research. Before anyone on your staff makes contact with someone is has become delinquent on their bills, you need to make sure they know everything about the situation. They should have copies of contracts, invoices, and anything else you may be able to find. If you have a loyalty program, you can get more information on the situation that way.

Keep records of everything. The people who work in your accounts receivable debt collection department need to keep copies and records of all correspondence and communication with the customer or client. If you can record calls, that works the best. The next best thing you can do is take scrupulous notes of everything that goes on between you and the delinquent person. The sooner after conversations, notes should be taken. That is when everything is still fresh in the mind.

Assumptions will get you nowhere good. Before you contact anyone, make sure the bills in question are still outstanding. There are lots of reasons for this. If the bill was paid by mail, it may not have been in your system when you first got the delinquency report. Making a debt collection call when a bill has been paid will just upset the customer and may cost you more money in the long run. It is also important to maintain professionalism at all times. Being rude will not get you any of the money you are owed.

Again, you have to be professional and polite. Just because a person has not followed through on a debt does not mean they are a bad person nor does that justify having a bad attitude with them. You also will get more flies with honey than with vinegar. If you start out upset, the conversation has no place to go but down. If you start your conversation on a pleasant note, you will get a better outcome. Life happens. The person may just need some extra time. You should not get attached putting the person on the defensive means no progress will be made.

Do not accept manipulation or confrontation. When you are dealing with debt collection, these can be found on both sides of the conversation. You can and should make every effort to make sure any story they tell you is the truth. You can contact other people but you really should go with your gut.

Do not let them abuse you in any way. You are trying to deal with a debt collection job done. If they are having an issue with their bills, that is not your fault. Do not let them convince you that it is. If they yell at you or use a bad word, you can always hang up.

Try to come up with options. When a person cannot pay off a debt, there may be a way to help them meet their obligations. If you wok out a plan, there you will have a better time getting a decent resolution for the debt collection. Many people often feel overwhelmed when they cannot pay their bills and just helping coming up with a plan can make the process of getting payments from the customer.

Dealing with debt collection can be very intimidating and no one really likes to have to do it but these tips can really make a difference and the process go better so you do not have to hire an accounts receivable collection agency.

7 Tips for a Better Experience Dealing with Debt Collection Services

Sat, 23 Mar 2019 12:04:21 GMT

Debt is a big problem for people all over the United States. Consumer debt around the nation reached $3.95 trillion in September 2018. That was a rise of about 3.3% from the year before. If you are getting calls or letters from debt collection services, there are things you can do to have a better experience.

Do not ignore the letters and calls. It can be easy to ignore communications from debt collection and recovery services. The more you know about your debt, the better. If you are getting notices and letters for debt that is not yours, there are things you can do. If you do not reach out to deal with the debt that is yours, your chances of having a consumer-friendly experience go down by a lot.

If your creditors are threatening a lawsuit, talk to a lawyer who is experienced at dealing with collection agencies. You can also talk to the National Association of Consumer Advocates to get a good attorney in your city or town. You need a lawyer who can practice in your state. The time that a dent will stay on your credit report differs from state to state.

Keep records of everything. If you are working on improving your credit report and score, you should keep records of all of the payments you make. There are experts in debt who recommend keeping your records as long as you would your tax returns. You can also scan them into your computer and keep them on a flash drive so you can pull up records of your payments and how you have resolved your debts for as long as you need them.

Take care of your bank accounts. Whether you are dealing with debt collection services companies or not, there are always steps you should be taking to keep your bank accounts safe. If you receive Social Security payments or checks for a disability, those should go into a bank account that is separate from your regular bank account. These funds are exempt from the reach of the courts when it comes liens on your accounts from debts. If you get communications from a debt collection agency, you should let them know about funds that are exempt or if you have filed for bankruptcy.

Be careful with your credit card and bank account information. One way to rack up debt that is not your own is to let people get access to your accounts so they can buy a lot of stuff with your cards and money and leave you with nothing but calls and letters from debt collection services companies. If you lose your wallet or credit cards, call your bank and the companies with whom you have credit cards and let them know. They can shut down the cards and make sure you are not liable for charges made by someone other than you.

Pay attention to bills you get in the mail. If you get a bill and you cannot pay it, you may be able to work something out with you so a debt collection services company is never bought into work on your account in the first place. You may be surprised at how many companies will work with you to find a way that you can handle to pay off your debt. Even people with health insurance have a hard time paying their medical bills. At least 20% of Americans have medical debt. Most medical providers will work with people to help. Some will forgive a lot of a person's medical debts so it is worth it to call them.

Talk to the debt collection services company about your situation. Most people in the world fall on hard times at some point in their life. If your debt problems were started because of an accident or medical crisis, you can present that to the debt collection agency.

If you have a problem with debt and your credit report and score has suffered as a result, you are absolutely not alone. It may seem counterintuitive but debt collection service s companies are not the enemy. They can work with you to improve your credit score and report.

3 Reasons Small Companies Can Benefit From Debt Collection

Fri, 08 Mar 2019 16:22:31 GMT

When most people hear about a debt recovery agency, they think about aggressive debt collectors tracking people down for unpaid bills. Debt collection and debt recovery agencies tend to have a less than ideal reputation, but in reality, debt collections can be beneficial to businesses. How exactly do debt collection and recovery services help small businesses? Here are just a few reasons why you might want to hire a collection agency for your small business.

Keep assets moving: When you're a small business with limited capital, every dollar you have to spend on your company counts. That means that when your customers aren't paying their bills, the damage done to you can be even greater. That unpaid bill might mean that you aren't able to keep inventory stocked, or customers satisfied, or employees paid. Third party collection agencies make sure that you have access to as much of your capital as possible.

Funds for growth when you need them: A small business needs capital in order to grow and expand, and customers that don't pay their bills can keep you from doing that. 29% of debt collected by agencies is aged 90 days or less, however, 90 days can be a long time for a business waiting to see if it has the capital to open up a new location. Debt collection services can help keep your business growing as it starts out, giving you greater potential moving forward.

Third party involvement: Most businesses, especially smaller ones or ones just getting off the ground, don't have the resources necessary to track down outstanding debt. Simply put, debt collection takes manpower that many small businesses lack. Hiring a third party collection agency gives you the additional help you need to collect on outstanding debts that might otherwise go unaddressed.

Debt collection and debt recovery agencies can have a bad reputation, but in reality, a debt recovery agency can help you and your growing small business thrive by getting you the assets you need to succeed. Collection agencies are a valuable resource that more small businesses could make use of. For more information on debt collection services, contact Credits Inc. today.

Business Debt Collection: An FAQ

Wed, 20 Feb 2019 19:51:23 GMT

Business debt collection agencies tend to get a bad reputation. Too often, individuals who have negative experiences with debt collectors share their upsetting experiences, painting the whole industry with a broad brush in ugly paint. While it's true that there are some upsetting debt collection practices out there, many other collections agencies are different. Most work hard to help businesses retrieve debts while also treating debtors with the utmost respect.

Without a doubt, many misconceptions surround debt collection. Businesses looking for collections solutions often have many questions and suspicions, and some are reluctant to hire a business debt collection agency even though they need collections help.

We're here to help clear up the confusion. Here are a few commonly asked questions about business debt collections, answered:

Will Hiring A Collections Agency Drive Away Customers?

If you hire a professional and reputable collection agency, you'll be able to retrieve debts without sacrificing your corporate image. After all, debt collectors must obey debt collection law regarding harassment and how often they can contact debtors. Furthermore, hiring a high-quality, dependable, and friendly agency can protect your company reputation. As long as you thoroughly research your debt collection services before hiring, you won't lose customers in droves.

How Long Do Collections Take?

Unfortunately, the timeline can vary widely from situation to situation. Some debtors are quick to respond to collection pressures, while others may resolutely ignore calls. Hiring a high-quality, reputable agency is the best way to recover debts quickly. Regardless of the time frame, collection agencies are still effective: in 2016 alone, debt collection agencies recovered approximately $78.5 billion in total debt.

What's The Difference Between Account Receivable Collections and Debt Collection?

The debt collection world tends to be riddled with industry jargon. "Receivables" refers to the amounts of money you're owed by customers and clients. Once a certain period of time has passed, that owed money becomes debt, and the customer's account becomes delinquent. Receivables management refers to managing money owed, and debt collection refers to retrieving owed amounts that are significantly past due. Often, a business debt collection agency can perform both roles.

Many misconceptions surround the practice of debt collection. With these questions answered, you'll be better informed, and better prepared to decide what your business needs. For more information about what a business debt collection agency can do for you, give us a call at Credits Inc today!

4 Advantages of Working With Debt Collection Services

Sat, 16 Feb 2019 12:26:58 GMT

In order to sustain as a profitable business, you need to focus on so many important aspects. You need to keep your customers and employees happy, you need to properly advertise your business, and you need to keep your products and services up-to-date. Most importantly, though, you need to handle your bills.

A successful business needs to collect payments for products and services but that is much easier said than done. Consumers and other companies you do business with aren't always that reliable, as they might be struggling financially, as well.

That's where debt collection services come into play. As of 2017, there were approximately 8,513 debt collection agencies across the United States. The last thing you want to do as a business owner is call, email, and visit your customers for invoice payments and outstanding debts. Instead, consider hiring a reputable debt collection agency.

Here are some of the main advantages of working with debt collection services:

Legal protection -- Since there are all kinds of rules, regulations, and laws that govern the debt collection industry, it can be quite complicated to handle yourself. Debt collection agencies can help you navigate these laws and ensure that you're out of legal trouble.

Organization -- Another issue with handling all your company's outstanding debts is all the paperwork. It can be overwhelming. Debt collecting agencies will help you get much more organized through diligent documentation.

Financial security -- Perhaps the main benefit of working with qualified debt collectors is simply receiving the money that your business is owed. Debt collectors will increase the chance of your customers paying the money they owe, subsequently improving your cash flow and virtually every other aspect of your business.

Free up your time and resources -- Rather than spending hours on end trying to collect debts yourself, as debt collectors do their job, you'll be able to concentrate on other important aspects of your business. From day-to-day activities to onboarding staff, being able to focus on these aspects is extremely helpful.

If you want to learn more about the benefits of working with professional debt collection services and hire a collection agency that can handle everything from accounts receivable debt collection to court collections, give Credits Inc. a call today.

3 Red Flags That Your Business Need Debt Collection Help, ASAP

nick.zatta@logicalposition.com (Nick Zatta) — Mon, 14 Jan 2019 19:30:55 GMT

As any business manager knows, monitoring the flow of company funds is essential to keeping the operation afloat. Sometimes, however, keeping track of revenue and expenses becomes a tangled mess, especially when your customers or accounts aren't paying as planned.

When this happens, you have one of two options. You can try to retrieve debts in-house, or you can hire a collection agency to track down and retrieve what is owed.

Both of these methods have their merits. However, in some situations, choosing to work with a receivable management collection agency is the best way to balance finances. Waiting too long to hire debt collection services could prove costly if your bills are piling up faster than your accounts are paying up.

Don't wait until it's too late to hire a receivable management collection agency. Here are three signs that your business needs the help from professional debt collectors:

1. You've Got Customers Who Have Vanished

Don't waste precious time and resources trying to track down every debtor. If you've got more than one customer who you can no longer contact, consider hiring a debt collection agency. Collectors are well trained in tracking down escape artists and respectfully holding them accountable for their debts.

2. Your Customers' Debts Are Over 90 Days Past Due

If your customers have debts that have been past due for three months or more, chances are, you're going to wait even longer to get paid. Overall, 29% of debt collected by agencies has aged 90 days or less, but many agencies specialize in retrieving older debts. Hiring a debt collection agency can help speed up the debt retrieval process, so your own business debts don't end up past due as well.

3. Customers' Checks Keep Bouncing

If you have a few individuals who keep sending you bad checks, you likely will need the help of a third party collection agency to sort through the problem. These situations are delicate since often the customer was genuinely trying to pay off their debt. Set things right without losing a return customer by working with respectful and knowledgeable professional debt collectors.

Managing a business's finances is a lot of work. When bills start falling behind and customers quit paying, that hard work can become a nightmare. Get help sorting through the frustration by hiring a receivable management collection agency. For more information, contact Credits Inc today!

Find the Right Collections Agency for Your Business in 4 Easy Steps

nick.zatta@logicalposition.com (Nick Zatta) — Thu, 10 Jan 2019 23:48:43 GMT

Choosing the right debt collections agency for your company or project is the first step towards getting your business finances in order. However, choosing the best agency for the job is a job itself. Without proper research and careful consideration, your business could end up dealing with an even greater collections conundrum.

Luckily, there are a few easy strategies for selecting appropriate debt collection services . Try the following steps to find the right business debt collection agency for your business’s unique situation:

1. Determine Your Collection Needs

The first step towards finding the right debt recovery agency is taking the time to determine what your company needs help with. Start by determining the number of accounts that need collecting, the size of the claims, and sorting through the different types of debt you’ll be dealing with. Oftentimes, a collections agency will specialize in different account or debt types. For example, since almost half (47%) of all debt collected by the collection agency industry is health-care related, many agencies specialize in medical debt.

Start by drawing up a list that characterizes the accounts you’re managing. Then, use those qualities to draft a shortlist of possible agencies with relevant experience that you can research further.

2. Research the Agency's Approach

Once you’ve found a few agencies with experience in your industry, it’s time to learn more about their collections style. If the company specializes in commercial collections (recovering debt owed by businesses), it may take a more direct and aggressive approach that isn’t appropriate for handling consumer debt. Other collections agencies might even take a hands-off automated approach that uses voicemail or emails to communicate with debtors. Since you’re hiring debt collection services to represent your own business, ensure that their approach aligns with your company values.

3. Research the Agency’s Qualifications

Check to ensure debt collection services are appropriately licensed and accredited in your state. Membership in organizations like ACA international is a good sign, since they often require collectors to pledge to follow an ethical code of conduct. An accountable agency that handles its own paperwork can likely be trusted to handle yours, too.

4. Contact the Agency to Learn More About Their Services

Finally, take time to have a few conversations with the business debt collection services you may want to hire. Speaking in-person is a good way to learn about a company’s communication style, and it gives you the opportunity to ask questions. Speaking with an agency about pricing options is also good way to determine which services make the most sense for your business.

Though there are over 8,000 debt collections agencies to choose from in the United States, finding the right agency for your business doesn’t have to seem impossible. Use these three easy steps to get started. With research and careful consideration, any business can recover owed debts without the worry or hassle.

Looking for an experienced, respectful and well-rounded collections agency in Oregon, Washington, or Idaho? Contact us at Credits Inc. today!

Running A Business? 3 Smart Reasons to Hire A Collections Agency

nick.zatta@logicalposition.com (Nick Zatta) — Fri, 14 Dec 2018 20:12:59 GMT

If your business wants to stay in business, managers must have a reliable way to collect payments for products or services. Whether you sell housewares, offer pool cleaning services, or run a business in nearly any other industry, without timely payments, your company wouldn't last very long.

Unfortunately, collecting payment for services rendered can sometimes prove challenging. For businesses that don't have the time to focus on collecting outstanding debts, an accounts receivable collection agency might be the perfect solution. As of 2017, there were 8,513 debt collection agencies in the U.S., all dedicated to helping businesses recover customer debts.

However, the benefits of hiring a third party collection agency go beyond getting what your business is owed. Here are just a few of the many perks of working with business debt collection services:

1. Hiring an Agency Protects Business-Customer Relationships

Though stereotypes exist about the aggressive tactics of bad debt collectors, in reality, debt collectors are highly trained to be courteous and understanding while also holding debtors accountable. Often, the interactions between the business and customer is quite personal-- getting money problems involved in this relationship might lose your business a return client. By hiring a debt collection agency, you can ensure that your customers only interact with a polite and impartial third party.

2. Your Team Can Get Back to What They're Good At

Choosing to hire a collection agency not only saves your customer relationships; it also saves your company significant amounts of time. Your team will no longer have to spend hours making calls or trying to keep track of dozens of accounts. Instead, your best people can get back to making sales and perfecting your product.

3. An Agency Can Keep You Organized

Finally, an accounts receivable collection agency generally has a wide range of industry software and tools that can help keep your documents and accounts more organized. Since debt collections can sometimes become legal issues, keeping organized records is essential to effective and risk-free debt recovery. Protect the rights of your clients, and protect your own company from legal mistakes by entrusting your collections with the experts.

Any business manager knows that delegation is the key to success. A well-organized team consists of individuals working on separate tasks while all focusing on a shared company goal. By hiring an accounts receivable collection agency, you can delegate the task of managing debts, so that your team can get back to what it does best.

For more information about hiring a debt collection services in the Northwest, contact Credits Inc. today!

3 Misleading Myths About Debt Collection Agencies

nick.zatta@logicalposition.com (Nick Zatta) — Wed, 12 Dec 2018 02:21:55 GMT

The world of money is riddled with stereotypes. Bankers, lenders, stockbrokers, and even economics scholars all face different disparaging beliefs about their character and the nature of their work.

Contrary to popular belief, individuals and companies in the finance industry are not soulless and greedy. In the debt collection field specifically, professionals are trained to be caring, concerned, and tactful when it comes to retrieving payments.

Falsehoods and myths about the debt collection industry lead businesses and individuals alike to endure unnecessary debt and financial burdens. To limit misunderstandings and promote cooperation, here are three myths about debt collection processes that simply aren't true:

Myth #1: Debt Collectors Harass Individuals Who Owe Money

False. From the start, debt collectors are trained to never harass or mistreat consumers. Repeated and aggressive calls are not only ineffective, but they are also illegal. The Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive, unfair, or deceptive conduct a bad debt recovery agency might display. In any case, reputable agencies know that such immoral and repulsive tactics rarely work.

Myth #2: Hiring A Collection Agency Will Cost Your Business Money and Customers

False.If you're a business manager, choosing to hire a collection agency will not hinder your company's reputation or profits. A management collection agency will use tactics like active listening, clear communication, and case-by-case attention to detail to ensure your customer is both accommodated and held accountable. These strategies ensure that your business receives what it is owed in a timely fashion, without sacrificing a return client.

Myth #3: Debt Collectors Only Handle Large Debts

False. In fact, though debt collection agencies recovered approximately $78.5 billion total in 2016, debt collection agencies can work to retrieve debts as small as $200, and perhaps even smaller. Some agencies specialize in working with either large or small amounts of money owed, and with working between business or between businesses and individual consumers.

Finding a Trustworthy Debt Collection Agency

Ignore these three myths to better understand the debt collection industry. With more clarity comes better trust, and better business relationships.

If you're looking to outsource your accounts receivable tasks, be sure to do careful research to find a business debt collection agency appropriate for your company. Look for a service that accommodates your industry type, such as medical debt or government debt. For a personable, effective, and experienced debt collection agency in the Pacific Northwest, contact Credits Incorporated today!