Commercial collection is a normal part of business. If your company offers products and services to clients, you will have to charge a fee which they will have to pay you for. However, not all clients are diligent when it comes to making payments. If your business has difficulty in getting clients to pay what they owe you, consider getting the services of a debt collection agency.
Accounts Retrievable Collecting Debt & Judgement
The United States has many rules protecting the rights of both businesses and individuals regarding debt collection procedures. You may have a difficult time collecting because certain laws can allow your clients not to make a payment at all. If you are not familiar with these laws, you may end up making a mistake that can land you in court. Acquiring the help of a commercial collection firm lets you get what your clients owe in a legal and effective way.
Gathering cash payment is easy and simple, but these days, businesses go for easier options. A client can issue you a check or pay you via wire transfer. These modes of payment make it tricky for you to gather payment from different clients because they can have many issues that will delay the payment. Professional debt collectors will talk to your clients about the cause of their late payment and work out ways to resolve their problems so they can give you what is due.
A debt collection agency offers their services to you for commission. They will not ask you for an upfront payment before they start investigating your overdue account and talk to your clients on your behalf. This means you can consult with them and acquire their services before you have to pay a fee. What they ask for is a part of the amount they will collect from your debtors. They can get an average of 20%-30% of the total amount they get from your clients. This percentage can go up to 50% if it is an older debt with less chances of being paid.
Consult with different debt collectors before getting their services. They will assess your situation and let you know how big your chances are of settling the unpaid accounts. Go for an agency which has experience in dealing with the kind of arrangement you have with your client. Not all unsettled account cases are the same. Apart from doing research and relying on referrals, you can ask your debt collectors about their experience in handling a case such as yours. Seeing different agencies before making a decision also allows you to choose the best firm with the lowest commission rate.
Debt collection laws and procedures vary in every state, so make sure the firm you hire has a license in your state. You are hiring them for their expertise in the law, and no matter how effective they are as collectors, if they are not licensed in your state, they can make a mistake which will cost your business and hold you legally responsible.
Hiring a debt collection agency to take care of your unsettled accounts saves you time and manpower. By getting their services, you can get your due income properly without going through a difficult time yourself.
Getting a debt collection lawsuit from your credit card company’s collection agency and getting complaints and summons in your mail will be very confusing and stressful. You would start thinking about what is the best way of reacting to this situation. Instead of panicking, you should calm down and start thinking about all your debts from the credit card. You should also be knowledgeable about your rites, and what steps to take. Below are the most basic things to do when facing a debt collection complain.
Accounts Retrievable Debt Collection Services
The first thing you need to do is to reply to the summons. You can write a letter to the collection company and ask for details about your case. You can also call them and ask if you can schedule an appointment to discus about it. Many would just ignore this but cases like these will need your immediate attention. Don’t just think that these will just disappear and be forgotten. If you want to win a debt lawsuit, you have to face the collection company. Just because you are calling them, it does not mean that you are admitting to these accusations. It’s only a simple reply and clarification. Not relying may cause the collection company to pass default judgment. It’s also like giving up on a fight that you have a big chance of winning.
You also have to consider whether the company or firm that’s suing you is the original company where your card came from or some collection agency connected to them. This makes a very big difference in any debt collection case. If the complain comes from your original creditor, they have a copy of most of the legal documents and papers and use them against you in court. If it’s a collection company, most probably they have incomplete documents which you can use as leverage.
Lastly, talk to a lawyer about what other things you have to do for the case. Sure you need to pay them to defend in you in court, but at least you are not doing it alone. They can help you gather all the sufficient evidence that can help you win the lawsuit. However, you have to tell them everything they need to know about your debts, spending habits, work income, living situation, and so on. Lawyers can give you a good pathway to follow and guild you through the debt collection lawsuit process.
Chasing up payments with clients is not only a hassle but time consuming also. Here, we’ve listed some of the major advantages of employing a debt collection agency to assist with outstanding payments your business is owed:
• No payment unless the job is done: It can often feel like a bit of a risk employing a company to recover debt from someone you don’t think will pay. Therefore it would be easy to surmise that you will be more out of pocket due to the cost of employing the agency. Most debt collection agencies however do not take any fee unless they are able to collect the debt you are owed. So there is no risk of being more out of pocket.
Accounts Retrievable Debt Collection Agency
• Save on resources and money: There is no point in allocating staff members the job of chasing up payments when it is not the core of your business or their position. By outsourcing this to specialised professionals the job will be done faster as you will be employing people who do this full time and you also won’t be distracting current staff from their important tasks.
• It will help you to keep focused on your business: There is nothing worse than spending half the day worrying and chasing up payments when there are other more important things you need to be doing. If you are debt collecting you aren’t expanding your business, finding new clients or assisting with the core services of your business, which is where your attention should be. By employing a debt collection agency to recover payments you are owed you are making sure you can stay focused on your business and ways of expansion.
• Receive your cash sooner: By outsourcing your debt collecting to a company that specialises in debt recovery services you are almost guaranteed to receive your payment much sooner and faster than if you were to spend the time chasing up the payment yourself. This is definitely one case where leaving it to the experts is the way to go.
• Possibly save on legal costs and further stress: If you have the hassle of having to chase up with phone calls and possible legal action in the future this will only create more stress for you. By employing a debt collection agency to handle all of this, you can focus on what’s really important and leave debit collecting to the experts.
Using a debt collection agency has many advantages for all types of business owners. What’s great about most debt collecting services is they will not charge you unless they are able to recover the debt so you have peace of mind you won’t simply be further out of pocket. I hope our list of advantages has given you a clearer picture of why debt recovery services can really assist small business’s with debt collecting. There really is nothing to lose and only your outstanding payments to gain.
In any kind of businesses it is inevitable to encounter problems of unpaid debts. Obviously, there is no business that only accepts cash because almost all business is accepting check. However, accepting check as payment can lead to debt especially if the customer pays bounced check. Apparently, it is very difficult collecting overdue accounts if the collector does not have proper training in debt collecting.
Debt collections can be detrimental in every business. In the same manner, collecting delinquent accounts can save the business from bankruptcy. That is why it is important to find the right agency that can handle debt collection for your business. As much as possible you should choose collection agency that has trained staff who can carry out the job well. This is necessary so that you can ensure that the money you will spend in hiring debt collector will not be wasted.
It is ideal to hire collection agency that can handle debt collection without asking for advance pay. Usually, a good debt collector is the one who take the fee once the debt collection is fully paid by the debtor. Likewise, hire debt collectors who are protected and legally certified by errors and Omissions Insurance. In this way you can ensure that your business is not liable for any mistake done by the collector while doing the debt collections.
The advantage of hiring debt collector to do the job of debt collection is that you can ensure that your business will not be put into shame. It is because professional collector knows the rules and regulations regarding the fair debt collections. This means that they are using method without causing harm to the debtors. They ensure that the debtors will be encouraged to pay their financial obligations because of their humane approach and constant communication.
Likewise, professional collector can do debt collecting easily by explaining to the debtor about the amount they owed. In the same manner, in case that the debtor does not have the capability to pay the entire debt then the collector will give some options such as payment plan that is reasonable in the part of the debtor. On the other hand, if the debtor just forgot paying the debt, the professional collector can give persistent reminder.
That is why before hiring debt collector makes sure to do research about collection agency. In this way you can ensure that the collector is knowledgeable and has credibility to do the debt collections. In addition, hire a professional that has license to execute debt collections because there are people who will not believe unless they see some proofs. Thus, make sure that the collectors possess license that they can show or present to the debtors as they implement the debt collections.
Furthermore, through debt collections you can have the opportunity to improve the cash flow of your business once all the unpaid debts are fully paid and collected. Indeed, debt collections are great help in boosting your business and the amount you will spend in hiring professional debt collector pays off once the job is done.
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.
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:
