Unsure whether sending your outstanding debts to collection is the right move? Collection agencies completely understand. They can go over your existing debts and unpaid invoices with you to help you find the best solution to get as many of the debts paid as possible.
Bad debt affects everyone involved. It impacts the profitability of businesses large and small, and it can have a lasting effect on the delinquent payee’s credit scores. Up to 88% of all businesses have or plan to report bad debt and institute credit scoring policies.
When you hired someone specifically to track down unpaid invoices and debts, you have to pay them a salary whether they recover any unpaid debt or not. Collection agencies only get paid when they recover the debt, which makes debt collection overhead a lot easier.
Are you a small business owner? Hiring a collections agency allows you to maximize revenue without interfering with the operations of your company. The time an employee spends trying to collect old debts is time he or she isn’t spending to generate future revenue for the company.
Debts large and small can be collected through debt collection services. Because multiple small debts can add up to big sums overtime – particularly for small businesses – smaller debts are not exempt from collection attempts and services.
Many companies simply aren't large enough to dedicate resources to collections without affecting current operations within the company. Outsource your collection business to us and let us focus on the issue while you focus on your business.
Remember, it’s never a good idea to place a collection call outside of the approved times of day for your area. Not only does it leave a bad taste in your customers’ mouths when you skirt the rules, it can also be in violation of the law.
Do you ever feel like your customers aren’t taking you seriously when you contact them about their delinquent invoices? Working with a collection agency can make it easier to report slow pays to the credit bureaus.
Collection agencies work on behalf of the creditor and collect debts for a fee or percentage of the total amount owed. Third party agencies are separate companies that are contracted by the creditor, whereas debt buyers purchase the debt for a lesser amount and then attempt to collect.
Generally, it’s more profitable to use your own efforts for accounts that are 60 to 90 days delinquent, since the chances of recovery are higher. Once they get past this range, it’s a much better use of your resources to let collections agencies take over.
The Fair Debt Collection Practices Act protects consumers from harassment and unfair practices. For example, collectors cannot threaten a consumer with a lawsuit or arrest to collect a debt.
Have you been hesitant to turn over your collections to an agency because many of your clients are like family to you? Remember, you’re always in control of which accounts you have us work on your behalf and which you continue to call on in-house.
Remember, outsourcing time-consuming tasks is a key way for businesses to take on additional work and expand. If debt collection is one of these tasks, we’re ready to take over so you can move onto more productive things.
The term “stock holder” dates to the ancient practice of tracking debt on wood tally sticks. Notches indicated the amount owed, then the sticks were split down the middle. The “stock” portion was held by the creditor, and the “ticket” portion went to the debtor.
A challenging economy means more micro and small businesses are slow to repay loans they’ve obtained to purchase real estate and expand operations, buy essential equipment, acquire materials and inventory, or provide working capital for day-to-day operations.
Collections workers are tightly regulated in what they can and can’t say to customers, including when and how often they can call by the Fair Debt Collection Practices Act, which was passed in 1977 in response to complaints about abusive collections practices.
Your company will recover more money by turning over accounts to a collection agency as soon as they are 60 days overdue. That’s because studies show that the longer a debt is overdue the lower the chances are of every recovering any money.
Do you ever worry that delinquent customers are going to cause you to be unable to meet your own financial obligations? When non-paying customers are hurting your cash flow, a collection agency could help you to restore the balance.
The older the delinquent debt, the more difficult it is to recover the funds. If your collection efforts have not been successful after 60-90 days, turning the process over to our agency to work on your behalf is a less expensive process.
How much unresolved debt can your company afford to carry? If yours is like most companies, the answer is none to very little. We have a proven track record in recovering monies lost because of non-payment.
Why would a customer want to pay an outstanding debt that’s gone to collection? While having an account in collections is a serious mark on a credit report, experts say that paying off the account so the credit report indicates “paid in full” will boost the credit score.
Job growth for bill and account collectors is expected to be 15 percent by 2022. There were approximately 397,000 bill and account collectors employed in the United States in 2012, and projected employment for the industry is more than 455,000 by 2022