Here are some sound debt collection techniques that can be followed by businesses to mitigate the bad debt crisis:
Sending a pre-collection letter.
Hiring a collection agency.
Doing it yourself.
Sending A Pre-Collection Letter
Most businesses don't want to "play the bad cop" with their clients, so they approach a collection agency, which for a nominal fee sends a notice to the defaulter asking him or her to pay up.
Remember, a notice from a collection agency is much more effective than the notice from your company itself. It tells the defaulting customer that you have now hired a professional help to collect the dues and, thus, it increases chances of customer paying up the debt faster. The 'fear factor' of credit rating damage is associated with collection agencies.
Hiring a Collection Agency
A collection agency under the Fair Debt Collection Practices Act is one that recovers debt on behalf of others. It employs various methods to recover dues from errant customers:
Collection calls are a necessity in debt recovery. Handling the collection call in a calm and professional manner can make the difference upon which collections are made or lost.
Skip tracing is a detection method adopted to find a debtor who has absconded either intentionally or unintentionally. Forwarding occurs when a collection agency forwards a debtor's account to another collection agency, possibly because it does not have the authority to conduct business where it is currently located.
Flow Forwarding is a novel concept in which a collection agency contracts with a business to purchase all its bad debts on a periodical basis. Doing It Yourself
As mentioned earlier, most businesses suffer from bad debts because of a lack of a clear debt management policy. Most organizations would minimize their debt management if they had clearly defined credit policies. Moreover, a clear understanding of the law needs to be had before a business drags its clients to court. This is the tedious bit and therefore businesses need to be very sure with their preparation.
Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.
disinfecting cleaning services Winnetka ..One of the great challenges for independent professionals and small... Read More
My clients and many of my readers are small and... Read More
Here are a few tips on how to hand out... Read More
Car wash businesses are unique to other businesses. In fact... Read More
You want to know more about making money with your... Read More
Owning a small business in Wichita, KS might not be... Read More
We very much like what we see in Lubbock, TX... Read More
Obtaining a business credit card enables the small business owner... Read More
The way you manage your money is one of the... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
Why would you use an event pass?Event passes are often... Read More
Franchising Corporations need to maintain an iron fist when it... Read More
As a successful small business owner,you're accustomed to long hours;... Read More
As you may know, there are many ways to incorporate... Read More
When you hear the word "success" does it bring on... Read More
Many new ventures are preoccupied with all the money they... Read More
It behooves every professional mobile auto detailer to stay up... Read More
My colleague, Jane, recently lamented to me an all too... Read More
The choice to incorporate a small business in Florida has... Read More
One of the most common issues that comes up for... Read More
The Workers' Compensation situation in this country is unbelievable. Why,... Read More
Sometimes the simple businesses are the ones, which make good... Read More
Many small business startups fail within the first 2 years... Read More
Whether your target audience is in your neighborhood or across... Read More
last minute cleaning help Highland Park ..Most small business owners seek advisors who can help them... Read More
We're birds of a feather, public relations and small business.... Read More
There's been a recent rise in the number of elderly... Read More
It's obvious when a small business has accepted the fact... Read More
1. Everyone Makes A Difference ? Despite not letting him... Read More
TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to... Read More
In the Truck Washing Business every single type of vehicle... Read More
Many have not experienced a fire up close. One year... Read More
I believe the number one reason why a business will... Read More
Before you start a business we encourage you to prepare... Read More
The reason we Franchisors call it an exclusive territory is... Read More
When a regulator finds a target to go after to... Read More
One of the greatest pitfalls in e-commerce is Field of... Read More
Having their own business is something many millions of people... Read More
Q: I really want to start my own business, but... Read More
The success of your business is critically dependent on how... Read More
Early in my career, I wrote an article for a... Read More
THE PSYCHOLOGY OF PRICINGIn case you hadn't noticed, people can... Read More
As a company grows, the owner's role begins to change.... Read More
10 Best Practices to consider as your SBIR negotiations approach... Read More
The easiest way to lift profits is to cut the... Read More
A career coach could be simply defined your job seeking... Read More
Success is the desire of everyman on the face of... Read More
Last week we discussed the importance of performing an autopsy... Read More
Small business success is very similar to learning to walk,... Read More
Small Business |