When you engage a reputable agency to look after your debt collections, you can rest assured the matter will be handled in a professional and efficient manner. Debt collection agencies are bound by strict guidelines for going about the business of recovering debt. An agency will use techniques that have been developed over time for encouraging success rates.
Some of these techniques include the way they go about collecting information and the initial contact with not only the client but the debtor. Further, debt collection agencies understand the nature and psyche of the debtor. This cannot be underestimated. All debt collection demand letters and correspondence will be presented professionally and the searches that can be conducted are thorough and not always available to the general public. This is discussed in more detail below.
The collection of detailed information
An agency may need to collect detailed information about the outstanding debt and any correspondence between you and the debtor. The more information available, the easier the task will be for the agency. This is why it is important to maintain accurate records at every step of your dealings with your customers. Document phone calls and keep copies of letters of request you may have sent.
Professional correspondence that commands attention
Agencies have developed letters and correspondence that are presented in a professional manner commanding the attention of the recipient. Some may even send their demand letters on a solicitor letterhead, which adds an additional level of seriousness to the debt. It may be that you have already attempted to make contact by way of telephone calls and letters. There are many reasons why someone won’t pay an overdue account and continue to ignore your requests. A collection company will have worded the letter in such a way that it can’t be overlooked and ensure you have the greatest likelihood of success.
Searches not available to the public, for instance skip tracing
It can be a sinking feeling when an invoice or letter comes back unopened. The chances of an individual following up and finding someone who has left or skipped’ town are almost nonexistent. Debt recovery agencies have various skip tracing tools and techniques available to them to track down the missing person. They will gather personal details through database searches, investigations, telephone leads and more to track down the missing debtor and effect debt recovery proceedings.
Customized Collection Software
Most debt collection agencies will also use customized collection software to monitor the workflow of the collection cycle. This software prompts followup actions, stores critical debtor information, manages settlement arrangements and more.
Debt collecting is an industry that is continually evolving. With so much more private information now available through Internet search engines, techniques for tracking people who have defaulted on payment may have shifted but the objective to get debts paid remains the same. If you are struggling at any time in maintaining your accounts, using an agency could be the solution for you.
Further, debt collection agencies usually provide their services on a contingency basis. Therefore, you will not be out of pocket unless they collect the outstanding moneys.
Our goal is collecting your judgment fast and efficiently at competitive rates. We work on a contingency fee basis, this is the standard in the collection industry. What this means is that if we collect the money owed to you we will earn a fee from the money collected. If we do not collect the money owed to you, there is no charge to your for our efforts.
Are you interested in learning what information you will need to submit a claim for judgment collection or how can your company remedy judgment collection? Learn more about a judgment collector’s contingency fees, ways to collect judgments, and the information on your collection agency will need to collect payment with these great resources.
• Explore this article from Microsoft.com for tips on collecting payment for outstanding products or services.
While there are several ways that your company can attempt to gain compensation for retail collections and other services rendered to your clients, the way you approach the situation will ultimately affect the outcome. In debt collections it is important not to wait longer than 90 to 150 days from the date of the invoice or last payment to attempt to retrieve payment for unpaid services. Avoid losing your temper or arguing with debtors, as this will only make them become more rigid and unwilling to work with your company.
Direct Contact
There are a number of tactics you can employ to help you gain compensation and collect unpaid debts and unpaid judgments. One of the first things you can do in order to collect unpaid debts is you can send a statement that politely reminds your client that their bill is overdue. You may also consider calling your client by phone to remind them—however, you’ll want to keep positive mindset so that you can continue to do business with them in the future. When calling your customer by phone, start by asking them questions, such as whether or not they were aware the bill was overdue, rather than begin by accusing them of not paying for the services.
Garnishment and Collections
In the event that contacting your client by mail or phone does not yield timely results, there are several more aggressive tactics you may consider. This includes garnishing their bank accounts and brokerage wages, garnishing their wages, or sending a notice of intent to levy personal property. You may also consider consulting with a commercial collections agency to ensure that you are handling the process appropriately and following your state and federal guidelines.
Using a debt collection agency can save you money apart from the obvious reason of getting that unpaid bill paid. Debt recovery can be a costly business and by knowing when to outsource this task, you can save yourself time and other costs.
The obvious reason for using a debt collector is to get that unpaid bill paid. Debts that remain outstanding outside your trading terms prevent your business from moving forward. Debt collection agencies are experts at debt recovery and significantly increase the likelihood of recovering outstanding moneys.
If you struggle to pay your creditors because of old debts then this may well contribute to a decline in business. Without sufficient funds to purchase new products everything suffers, from your gross profit to your stock holdings and in turn your assets.
Your time is money – most business owners forget that time spent on chasing debts equals less time spent on making sales. Successful businesses always focus on core business, whether that is selling your goods or providing a service. Allocating time to activities outside core business can adversely affect the growth and functionality of the business. By referring outstanding debt to a collection agency you are freeing up your time to get on with the daily operations in running your business.
It is not just your time but anyone on your staff that is involved with the debt collection process. Any time taken away from concentrating on the customer is going to cost you in the long run.
A debt you have successfully recovered not only saves you money but also the hassle of chasing the debt. By putting the debt in the hands of an agency you are saving postage costs, stationery, phone expenses and even vehicle expenses.
Fee structures of some agencies are set on a ‘no collection no fee’ basis. Commission is only charged as a percentage of the debt collected. This is a great incentive for the collector to ensure they get your debt paid and also means a minimal cost for you.
It is important to note that if you draft your trading terms and conditions a specific way, you can also pass on a debt collector’s commission on to the debtor. Therefore you will not be out of pocket. This type of credit consultancy is a service offered by many debt collection agencies, such as Consolidated Collections Australia.
Debt collection agencies have resources that you may not have even thought about. This is because you are good at your business not only because it is what you do all day every day but because you have had special training. The same applies for a collecting agency. They are experts in debt recovery. It is what they are set up to do. You are their customer and it is in their best interest to look after you.
Customer relations can suffer if someone not conversant in the best way to recover debt tries to pursue an unpaid bill. Just as you would be reluctant to fix a mechanical fault on your vehicle without adequate training it might be wise to be as cautious about debt collecting.
It is an unfortunate circumstance when customers fail to honour a credit arrangement. But the whole process can be much smoother and easier all round if you seek the help of professional advice. If your outstanding debts remain that way after 30/60/90 days despite your attempts to recover the debt with some initial phone calls, follow up invoices and perhaps even letters of demand, then it may be time to hand the debt to a collector instead.
Many small businesses have a hard time collecting past-due payments for services provided to their clients. Check out these great resources for more information on the benefits of hiring a professional debt collections agency, the importance of record keeping, and the dos and don’ts of dealing with unpaid debts.
• Explore this New York Times article for more information on how some small businesses are creatively obtaining unpaid debts.
• This link from MoreBusiness.com provides tips for collecting debts on overdue accounts and unpaid bills.
• Check out this link from SmallBusiness.Chron.com for more information on the increase in the number of businesses filing for bankruptcy.
• Learn more about the benefits of hiring a debt collections agency with this entrepreneur.com article.
• Want to check out a review of Accounts Retrievable System? Visit this link from the Better Business Bureau to find out how Accounts Retrievable Systems rates among other debt collection companies.
Many small businesses turn to a professional collections agency to help them gain compensation for unpaid services from their clients. However, not all commercial collections agencies are created equal and very few firms provide the same services available through Accounts Retrievable System. Review some of these frequently asked questions to see what sets Accounts Retrievable System apart.
What Types of Accounts Can Be Collected On?
Accounts Retrievable System helps clients collect a number of accounts, including commercial accounts, consumer accounts, retail accounts, unpaid child support, spousal maintenance, and Judgments. ARS also collects accounts related to auto loans, personal loans, student loans, and landlord/tenant issues. Accounts Retrievable System also provides professional collections services for out of state and international claims. The people at ARS are experts on debt collections and judgements.
What Is the Minimum Claim?
Another question commonly posed is whether or not there is a minimum amount of debt that ARS will collect on. Generally speaking, the minimum amount for claims accepted is 1,500 dollars. Unlike other commercial debt collections agencies, ARS does not require any up-front payments and will only charge for services upon the successful collection of accounts.
How Long Should I Wait Before Contacting a Collections Agency?
Many companies question how long they should wait before sending an account for debt collections with Accounts Retrievable System. While there are no set parameters, most accounts are sent to collections within 90 to 150 days of the last payment or invoice, as the longer you wait the more difficult it may be to collect those receivables.
What Resources Can You Draw On?
ARS works with a national network of more than 420 collections attorneys who will begin the litigation process if traditional collection tactics do not yield sufficient results.
3 Tips for Improving Your Debt Collections Process
Accounts Retrievable Judgement Collections
In today’s economy, businesses can rarely afford to spend time resolving disputes and collecting debts. However, it is critical that you receive payment for the services that you provide. Here are 3 tips for improving your debt collections process.
• Investigate Your Customer
Before offering your services to a client, it is a good idea to do some basic investigation. Conducting research about your potential customer’s finances can help prevent further complications such as debt collections. If you are contracting with another business, find out whom they serve. If their clients seem reputable, then this is a good sign that the company will be a reliable. While it may seem counterintuitive to turn down potential clients, taking on financially unstable customers can end up doing more harm than good to your business such as the hassle of debt collections.
• Understand Your Customer’s Reputation
Once you have decided to take on a customer, try to find out as much as you can about the client’s reputation. In particular, see if you can discern how they generally go about paying for services. You can find this information from other businesses that have taken them on as clients. By doing some research, you can prevent confusion or disputes later one.
• Communicate with Your Customer
Constant communication is the key to improving your debt collections process. By establishing a relationship with your customer, you can ensure that both parties are fully informed throughout the process. You will understand your customer’s needs and limitations, and they will understand your expectations when it comes to payment. Once you have provided the service in question, you will be able to approach the customer honestly and in good faith to collect your payment. Regular communication can help establish a payment schedule that fits the needs of both your business and your client.
If you would like to know more about how you can improve your debt collections process:
The Power of Critical Listening in Debt Collections
Account Retrievable Debt Collection Services
Communication is the key to resolving debt collections issues in an amicable and efficient manner.
In this podcast you will hear about the power of critical listening in debt collections. The goal of listening, for example, is to develop a rapport with an account holder. For example, engaging in an honest conversation with an account holder can help the collections agencies decide whether there is enough information to file a claim. Furthermore, patient listening helps build trust between the collections agency and the account holder.
In order to avoid being taken in by slick presentations, unsound reasoning and subtle falsehood, it is important to acquire an understanding of the persuasion techniques commonly employed. Listed below are certain methods that have been (and are) used by speakers to convince, and often mislead, individuals and groups. Unfortunately, modern listeners seldom have any educational background in logical criticism or oratorical techniques, and are all too often vulnerable to and unaware of the traps being laid for them. Though this article focuses on developing listening skills, the same critical processes which can be used to analyze the validity of spoken material may also be employed in reading or self examination.
As a listener, it is important to think and apply the same good sense you use in everyday survival to every area of your life. It is tragic that so many choose to set aside their reasoning skills in large, important areas of life and, instead, settle for being manipulated—for uncritically adopting someone else’s pre-packaged viewpoints. It may be easy, comfortable and pleasant to allow others to do your thinking, but it is neither wise nor commendable. Since this is neither a book on logic nor a public speaking primer, the main focus will be on flaws, both on the speaker’s part and in the way audiences behave.
Sociologists have conclusively shown in study after study, that people tend to be influenced more by how something is said, than what is actually said. We tend to respond emotionally, instead of logically, particularly when in a group listening situation where there is neither debate, nor opportunity to question.
If you have any further questions about the power of critical listening in debt collections…
