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.
personalized cleaning services Des Plaines ..Cleaning the trailers towed by big trucks is not easy,... Read More
Franchising companies often use Business Broker to help attain sales... Read More
In general, all of us know how to accomplish the... Read More
Many small companies work very hard to get new accounts.... Read More
And is having a logo really that important?My answer to... Read More
It has been discussed allowing Franchising companies to electronically disclose... Read More
Writing a business plan for a mobile car wash is... Read More
"Inch by inch, row by row...that's the way my garden... Read More
One of the best marketing strategies a business or organization... Read More
In franchising an individual desirous of their own business will... Read More
-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More
If you own a small business, then you know the... Read More
Aside from the fear of losing a spreadsheet or research... Read More
If you are thinking of turning your current into a... Read More
The success of your business is critically dependent on how... Read More
We were more than excited. Our women's doubles tennis team... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
Just a few years ago, when one thought of a... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Before you read any further in this article, I'd like... Read More
Remember the training programs, seminars, and workshops you had to... Read More
Are the promoters and consultants destroying the market for Reverse... Read More
Sacred cows take a long time to die. We get... Read More
In this paper, I will:1. provide a framework for creating... Read More
family-safe home cleaners Arlington Heights ..Entrepreneurs are hardy stock. But sometimes hardiness can get you... Read More
1. There Are No "gimmes" ? They count two-foot putts... Read More
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More
When the recent Games of the XXVIII Olympiad came to... Read More
As an entrepreneur you can learn a lot by following... Read More
BioTechs even with the latest news had shed over 1000... Read More
You may be in Mail Order, Direct Mail, or you... Read More
Whether your target audience is in your neighborhood or across... Read More
To maximum potential profits and dollars in a mobile washing... Read More
You've been meaning to tend to the administration part of... Read More
Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More
Last summer the FTC put forth a report and then... Read More
Consistency is a huge word when operating your business. I... Read More
Why? Because they have access to world class public relations... Read More
When starting a business, you have to determine the method... Read More
That sizzling sound you're hearing may be a symptom of... Read More
Every company has business pain, but the pain does not... Read More
What kinds of things effect mobile service businesses P and... Read More
Where do you find more customers?How do you compete with... Read More
For many small businesses, the "S" corporation is the business... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
Do you promote yourself as offering prompt, reliable and quality... Read More
Many investors and business ethics professionals are calling for more... Read More
Paul Leonard's BirthdayCards2Go.com paid greeting card service offers convenience when... Read More
Cash is King... That is what everyone tells us and... Read More
Small Business |