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.
one time home cleaning Highland Park ..When working properly, computers enable small businesses to make big... Read More
A career coach could be simply defined your job seeking... Read More
Bookkeeping?the "dreaded" word is something we all have to worry... Read More
When is the Chamber ideal for your business?Joining a Chamber... Read More
Why should you describe your business to others in 5... Read More
What image do you and your people portray to your... Read More
New Franchisors and Entrepreneurs need to watch out as they... Read More
You know what makes me really happy? Drinking a Starbucks... Read More
There are almost as many opinions and views on marketing... Read More
You bet a name is important. Many small business owners... Read More
Essentially there are 5 tremendously powerful methods to make money... Read More
Perhaps you are building a new home office or you... Read More
You know your prospects need what you sell. You know... Read More
If you're like me, you love accounting. It's so fascinating... Read More
While driving through Pennsylvania farmland, you have probably noticed an... Read More
A corporate shell could be liken to a house that... Read More
Running a small business requires many skills. However, to do... Read More
The success of your business depends on your ability to... Read More
Let me get right to the point. The single most... Read More
Should your business have a toll free number for customers... Read More
Work smarter, not harderWhat is one of the best ways... Read More
If you are in the pressure washing business and are... Read More
If you are in a franchise and have a territory... Read More
You make the decision to go into business and for... Read More
Gather round while I tell you the story of Kennebec... Read More
licensed cleaning services Park Ridge ..In the Truck Washing Business every single type of vehicle... Read More
You can provide affordable health care plans to your employees.... Read More
If you are looking for a way to own your... Read More
If you are worried about how many different business cards... Read More
Most small business owners seek advisors who can help them... Read More
Recently one of my customers told me the chaos swirling... Read More
How many hours do you work a week? When was... Read More
Think of all of your business ideas as tiny seeds... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
Send handwritten notes. That applies whether you're a guy or... Read More
It behooves every professional mobile auto detailer to stay up... Read More
What was your aim when you went into business for... Read More
If you run a pressure washing business it is a... Read More
How do we keep track of our business deals?If you... Read More
How do you know when an alliance needs to be... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
The success of your business is critically dependent on how... Read More
Are you tired yet of all the books out there... Read More
Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More
More sales and more profit. Isn't that what you want... Read More
If you own a mobile car washing, pressure washing or... Read More
KEEPING INTEREST HIGH: Supervision is key to the success of... Read More
If a customer owes your local business money, it's hard... Read More
If you're organized, smart, capable and willing to work with... Read More
Take advantage of world politics today and start your own... Read More
Small Business |