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.
Culver prom limo ..There are countless ways to save your business money. Unfortunately,... Read More
Before you start a business we encourage you to prepare... Read More
Here's why 'WHY' is such a profit-making marketing trigger."Stop taking... Read More
One of the biggest fears people have about starting a... Read More
How do you find the best business partners?Finding a good... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Now that winter has passed, the annual ritual of spring... Read More
Many times small businesses want to expand their businesses and... Read More
Never underestimate the power of perception! Perception plays a major... Read More
What is a Family Business? A family business is basically... Read More
You'd like to go into business for yourself, and believe... Read More
The start of a new year is a time for... Read More
How far can you go based on your relationship with... Read More
Now that you have invested your time, energy and money... Read More
To get approval for your small business loan application, you... Read More
When you feel like you're always busy working on your... Read More
One overlooked individual in the process of taking a company... Read More
A consultant must remember that the business belongs to the... Read More
Many physical therapists in private practice have the appearance of... Read More
A corporate shell could be liken to a house that... Read More
Under the Securities Act of 1933, any offer to sell... Read More
If you're an entrepreneur responsible for your own small business... Read More
-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More
Ongoing support for a franchise system is omnipotent. A major... Read More
Ok, so next to the taxman, your company payroll department... Read More
Wood Dale limo ..Writing a business plan is a fundamental step to ensuring... Read More
Many of us have noticed how some nearby communities seem... Read More
Many investors and business ethics professionals are calling for more... Read More
Why should you describe your business to others in 5... Read More
Purchasing a franchise has become one of the most popular... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
Where do you look for the appropriate alliance?One of the... Read More
First you have to start with knowing your budget and... Read More
You're a small business owner with a hot new product... Read More
Grow your Professional Organizer business by branching out into related... Read More
Doesn't it frustrate you when you've given good service, sometimes... Read More
Last year, trillions of dollars transferred hands on the internet... Read More
I am simply amazed at the problems some of my... Read More
Have you been searching for the perfect home-based business? I... Read More
You only have so much time in a day right?So... Read More
1. Leadership Is Learned ? While many people appear to... Read More
Time. As a small business owner, it's the commodity you... Read More
One of the most common issues that comes up for... Read More
Incredible as it sounds, you have a goldmine of free... Read More
One overlooked individual in the process of taking a company... Read More
If you run a pressure washing business it is a... Read More
Fuel prices these days are quite high and they take... Read More
It's just like a marriageTo expect a bank manager or... Read More
What would happen if you decided to take an extended... Read More
Everyone is talking about small businesses. In 1993, when it... Read More
Small Business |