How To Hire A Collection Agency: Turning Your Accounts Receivable Into Cash
by Takara Alexis
Since the start of the recession, businesses have had to a deal with reduced cash flow. This problem becomes even more critical when you are owed money and your debtors refuse to pay. In this situation it may be best for you to contact a debt collection agency in order to make sure that your company can remain profitable for years to come.
The first step is a classic: open up the yellow pages and search for a collection agency that is close to you. Each state has different rules for collecting debt, so it is best to go with somebody who's knowledgeable of the rules of your area. The agency could be called a variety of different things: debt collection agency, credit collection agency, bill collection agency, or a debt recovery agency. They all do the same thing, so you shouldn't worry about the name.
Once you have a list of potential debt collection agencies, do a little bit of online legwork in order to flesh it out. Most companies have a website nowadays, so you can go here to learn about rates as well as their areas of expertise.
The next step is a bit more complicated, but so is collecting bad dept. You should ask friends and local businesses to see if they have worked with any debt collection agencies and if they have any suggestions or horror stories they can share with you. Accounts receivable is one of the most important parts of any business, so you should make sure that you're working with a reputable company.
Now you should have a list of your top debt collection agencies that you should organize a face-to-face meeting with in order to make sure that these are the type of people that you want to work with. You should make sure that you have worked out what percentage of the bad debt the collection agency will take as their fee, what sort of tactics the debt agency will employ, and that they have experience in debt collection.
Once you have done this, go back to focusing on what makes your business great!
Monday, November 7, 2011
The Good Type Of Debt
The Good Type Of Debt
by Brian Burke
Debt can be categorized into two different groups: good and bad. Good debt is when money is borrowed and invested into something with potential future value. The amount of risk that exists will determine if the debt is good or bad. The key factor is the value of the investment that is made. Is the money loaned going to rise in value as an outcome? If your answer to this is yes, then the debt is good. There is a great potential in a strong collection of promising debt.
Many people take out debt, and for some very excellent reasons. One major debt of the current population is made up of student loans. If you receive a college degree, you significantly increase your potential income when you get a job. In today's world, even landing a job is a huge accomplishment. For example, if you take out a loan of $10,000 and end up landing a job where you make a salary that is $15,000 higher than what you would have made without the background education, you made a solid investment. You always want to have a plan, though. Don't just go to college because you don't know what you want to do and have no plan on pursuing a general career.
If you go to school and your future job doesn't have to do with your education then it may have been a waste. If this happens and you are unable to make payments, a debt collection agency will be responsible for collecting the payments. Until more recently, taking out a loan to buy a home was almost always a good investment. Throughout history, buying a home has been a good investment because property values usually increase. Taking out a mortgage is a very common way that people are able to pay for a home. It is a good idea to pay off this type of debt as soon as possible because of the way that mortgage payments are arranged. The way that they work is by having heaving interest weighted in the earliest few years of the loan.
Debt that comes without previous thought carries a higher amount of risk. Although you may be hesitant with some of these investments, there are certainly cases when you should incur a loan based on an emergency. Large, necessary home repair is a prime example. If you don't take care of a problem from the start, problems may soon begin to pile up on each other. Another example would be a health emergency. Personal health should always be a priority and should be taken extremely seriously, obviously.
Debt is definitely more intricate than this, but you want to always make an educated and well-thought-out plan regarding the risk that is being taken. You want to work out an fixed plan of payment back that you are sure you will be able to afford. Should a problem arise, it is a good idea to search for a debt collection agency. Debt collection would be the result of a poorly planned investment. The main aim is always to minimize risk while maximizing profit.
by Brian Burke
Debt can be categorized into two different groups: good and bad. Good debt is when money is borrowed and invested into something with potential future value. The amount of risk that exists will determine if the debt is good or bad. The key factor is the value of the investment that is made. Is the money loaned going to rise in value as an outcome? If your answer to this is yes, then the debt is good. There is a great potential in a strong collection of promising debt.
Many people take out debt, and for some very excellent reasons. One major debt of the current population is made up of student loans. If you receive a college degree, you significantly increase your potential income when you get a job. In today's world, even landing a job is a huge accomplishment. For example, if you take out a loan of $10,000 and end up landing a job where you make a salary that is $15,000 higher than what you would have made without the background education, you made a solid investment. You always want to have a plan, though. Don't just go to college because you don't know what you want to do and have no plan on pursuing a general career.
If you go to school and your future job doesn't have to do with your education then it may have been a waste. If this happens and you are unable to make payments, a debt collection agency will be responsible for collecting the payments. Until more recently, taking out a loan to buy a home was almost always a good investment. Throughout history, buying a home has been a good investment because property values usually increase. Taking out a mortgage is a very common way that people are able to pay for a home. It is a good idea to pay off this type of debt as soon as possible because of the way that mortgage payments are arranged. The way that they work is by having heaving interest weighted in the earliest few years of the loan.
Debt that comes without previous thought carries a higher amount of risk. Although you may be hesitant with some of these investments, there are certainly cases when you should incur a loan based on an emergency. Large, necessary home repair is a prime example. If you don't take care of a problem from the start, problems may soon begin to pile up on each other. Another example would be a health emergency. Personal health should always be a priority and should be taken extremely seriously, obviously.
Debt is definitely more intricate than this, but you want to always make an educated and well-thought-out plan regarding the risk that is being taken. You want to work out an fixed plan of payment back that you are sure you will be able to afford. Should a problem arise, it is a good idea to search for a debt collection agency. Debt collection would be the result of a poorly planned investment. The main aim is always to minimize risk while maximizing profit.
Debt Settlement, Done Your Way
Debt Settlement, Done Your Way
by Brian Burke
Although it is not typically done, it is possible for a consumer to duplicate imitate the methods used by a professional debt collection agency. There are definitely instances of success where people negotiate a debt settlement for themselves. These negotiations can be initiated by calling the customer service department of the credit card Company or by contacting the debt collection agency. The most frequent time that a credit card company will deal with a customer directly is when they are behind on payments but capable of making a lump sum payment. In this case, a payment plan is not an alternative. The credit card company will only accept a lump sum payment of the settled amount.
If you don't have the ability to pay the lump sum payment of your account then the advantages of settling a debt become restricted. One plus is that by negotiating your own debt, as a debtor you are able to save in fees that would have otherwise been paid to a debt settlement company. This way of working also gives the debtor a lot more power over the process. This could, or could not, be a motivational dynamic to continue working through the process.
The disadvantages are much more plentiful in this situation. Certain creditors will not settle directly with customers according to their or policies regarding debt settlement. Also, consumers may not be able to acquire as good of rates as they would through a debt collection agency. Customers could also face greater difficulty getting in contact with decision makers. This would result in long delays in any negotiations or paper work processing.
Debt settlement companies have a customer service department that supports the consumers with any questions or difficulties that arise. This support provides a great amount of value, especially in cases when the creditors become persistent. Any type of unfamiliarity of the settlement process can lead to slip-ups. You always want to be aware of any fine print and make sure that all correspondence and proposed settlement or agreement is carefully reviewed.
It is suggested that any settlement agreement is overlooked very carefully and by a third party. This will help to make sure that all terms are those that were agreed upon by both parties. It should be known that settling ones debt is an emotionally draining and very difficult process for those who are not professionally experienced. You should certainly weigh all options when deciding to take on the debt settlement or employ an outside service when dealing with a creditor or debt collection agency.
by Brian Burke
Although it is not typically done, it is possible for a consumer to duplicate imitate the methods used by a professional debt collection agency. There are definitely instances of success where people negotiate a debt settlement for themselves. These negotiations can be initiated by calling the customer service department of the credit card Company or by contacting the debt collection agency. The most frequent time that a credit card company will deal with a customer directly is when they are behind on payments but capable of making a lump sum payment. In this case, a payment plan is not an alternative. The credit card company will only accept a lump sum payment of the settled amount.
If you don't have the ability to pay the lump sum payment of your account then the advantages of settling a debt become restricted. One plus is that by negotiating your own debt, as a debtor you are able to save in fees that would have otherwise been paid to a debt settlement company. This way of working also gives the debtor a lot more power over the process. This could, or could not, be a motivational dynamic to continue working through the process.
The disadvantages are much more plentiful in this situation. Certain creditors will not settle directly with customers according to their or policies regarding debt settlement. Also, consumers may not be able to acquire as good of rates as they would through a debt collection agency. Customers could also face greater difficulty getting in contact with decision makers. This would result in long delays in any negotiations or paper work processing.
Debt settlement companies have a customer service department that supports the consumers with any questions or difficulties that arise. This support provides a great amount of value, especially in cases when the creditors become persistent. Any type of unfamiliarity of the settlement process can lead to slip-ups. You always want to be aware of any fine print and make sure that all correspondence and proposed settlement or agreement is carefully reviewed.
It is suggested that any settlement agreement is overlooked very carefully and by a third party. This will help to make sure that all terms are those that were agreed upon by both parties. It should be known that settling ones debt is an emotionally draining and very difficult process for those who are not professionally experienced. You should certainly weigh all options when deciding to take on the debt settlement or employ an outside service when dealing with a creditor or debt collection agency.
The Right Collection Agency
The Right Collection Agency
by Malik Toppins
As a motivated entrepreneur I had done very well for myself in the real estate market. I was able to acquire many homes and work spaces in need of a little care and fix them up to be ready for companies to occupy. This was working very well for me and allowed me to support my wife and three children for a handful of years. Unfortunately, the market began to flop and my luck began to run out.
Many of the residents that I worked with began to skip out on payments and it was severely hurting my income. The litigation involved with collecting the funds that were owed to me were becoming increasingly expensive and very time consuming. It seemed as though my choices were running thin and I was in need of some help.
I began to search through collection agencies, but was not impressed with any of the agencies I found. Most of the collectors I found all suggested that they were confined to collections within certain states. They also seemed very secretive about their methods of collection.
Finally, a friend of mine recommended Rapid Recovery Solutions as the perfect answer for me. Rapid Recovery Solutions were very open about their professional methods of collection and were licensed to collect in every state in the U.S. as well as many locations internationally. What impressed me even more about Rapid Recovery Systems was that there is no upfront charge like the other collection agencies I had researched. In fact, there is no charge at all until your money has been collected!
Rapid Recovery Solutions is not like the other agencies that are not concerned with building trust with their clients and perform their collection services the way any other bill collector would. They work with the belief that trust will be built through performance and results. For an agency with a collection rate that is among the highest in the industry, I find that to be one of the most impressive qualities.
by Malik Toppins
As a motivated entrepreneur I had done very well for myself in the real estate market. I was able to acquire many homes and work spaces in need of a little care and fix them up to be ready for companies to occupy. This was working very well for me and allowed me to support my wife and three children for a handful of years. Unfortunately, the market began to flop and my luck began to run out.
Many of the residents that I worked with began to skip out on payments and it was severely hurting my income. The litigation involved with collecting the funds that were owed to me were becoming increasingly expensive and very time consuming. It seemed as though my choices were running thin and I was in need of some help.
I began to search through collection agencies, but was not impressed with any of the agencies I found. Most of the collectors I found all suggested that they were confined to collections within certain states. They also seemed very secretive about their methods of collection.
Finally, a friend of mine recommended Rapid Recovery Solutions as the perfect answer for me. Rapid Recovery Solutions were very open about their professional methods of collection and were licensed to collect in every state in the U.S. as well as many locations internationally. What impressed me even more about Rapid Recovery Systems was that there is no upfront charge like the other collection agencies I had researched. In fact, there is no charge at all until your money has been collected!
Rapid Recovery Solutions is not like the other agencies that are not concerned with building trust with their clients and perform their collection services the way any other bill collector would. They work with the belief that trust will be built through performance and results. For an agency with a collection rate that is among the highest in the industry, I find that to be one of the most impressive qualities.
Helping Hands In Collecting Debts
Helping Hands In Collecting Debts
by Amir Mullick
Debt collection services are one of the most beneficial aides for a business because they not only save you time, money, and effort, but they also give you the most professional solution to recovering your debt prosperously. Administering debt collection is a receptive topic whether it is in everyday life or between high profile businesses. In addition, specialized knowledge and industrial experience is key in recovering debts, and these attributes are best associated with a collection agency.
Regaining funds from a source can be extremely time consuming with the quantity of phone calls and the multitude of numbers that need to be managed just make collection that much more difficult. By hiring a collection agency, all the tasks and problematic communication with the debtors are no longer something you need to worry about as a business. A debt collection service will take on every duty of retrieving the funds and on top of that, they'll do it befittingly.
Furthermore, the last thing any business wants to do is lose more money in an attempt to recover debts. A debt collection agency, although not free, will be economical compared to hiring a lawyer. Not only do lawyers have large fixed rates, lawyers also tend to take a longer time with their processes. Hiring a professional and well trained debt collection agency would be the most financially preferable decision.
Debt collection is seldom an easy mission. Whether it is between two friends or two businesses, there are always socially correct and lawfully just manners to going about recovering debts. Correct language, manners, and patience are important in debt collection. All of that takes a lot of effort because debt collection is mostly a series of phone calls and depending on how willing your debtor is to returning the money, these phone calls can become extremely time consuming and irritating. A collection agency will take on the task of contacting the debtor at all times necessary and will communicate professionally while keeping records of all calls and conversations so that no lawful issues befall.
Last but not least, debt collection requires experience as well as unconventional knowledge of the businesses, laws, and insurance. With years of practice in recovering money, as well as highly trained employees who comprehend the communication limits between a collector and debtor, debt collection services will be the perfect helping hand for any business in pursuit of their money.
by Amir Mullick
Debt collection services are one of the most beneficial aides for a business because they not only save you time, money, and effort, but they also give you the most professional solution to recovering your debt prosperously. Administering debt collection is a receptive topic whether it is in everyday life or between high profile businesses. In addition, specialized knowledge and industrial experience is key in recovering debts, and these attributes are best associated with a collection agency.
Regaining funds from a source can be extremely time consuming with the quantity of phone calls and the multitude of numbers that need to be managed just make collection that much more difficult. By hiring a collection agency, all the tasks and problematic communication with the debtors are no longer something you need to worry about as a business. A debt collection service will take on every duty of retrieving the funds and on top of that, they'll do it befittingly.
Furthermore, the last thing any business wants to do is lose more money in an attempt to recover debts. A debt collection agency, although not free, will be economical compared to hiring a lawyer. Not only do lawyers have large fixed rates, lawyers also tend to take a longer time with their processes. Hiring a professional and well trained debt collection agency would be the most financially preferable decision.
Debt collection is seldom an easy mission. Whether it is between two friends or two businesses, there are always socially correct and lawfully just manners to going about recovering debts. Correct language, manners, and patience are important in debt collection. All of that takes a lot of effort because debt collection is mostly a series of phone calls and depending on how willing your debtor is to returning the money, these phone calls can become extremely time consuming and irritating. A collection agency will take on the task of contacting the debtor at all times necessary and will communicate professionally while keeping records of all calls and conversations so that no lawful issues befall.
Last but not least, debt collection requires experience as well as unconventional knowledge of the businesses, laws, and insurance. With years of practice in recovering money, as well as highly trained employees who comprehend the communication limits between a collector and debtor, debt collection services will be the perfect helping hand for any business in pursuit of their money.
Friday, November 4, 2011
International Debt Collection: Debt Recovery Services Overseas
International Debt Collection: Debt Recovery Services Overseas
by Michael Gillen
International debt collection has its own pitfalls, but it's a crucial part of any debt recovery services plan. In the global village in which we live, it isn't realistic to assume to all of your debtors are going to remain within the United States. Considering our history as immigrant nation, it makes sense that people will have connections in foreign countries and, if they no longer want to repay their debt, they could end up skipping town.
The first thing you should remember is that, even if a person has fled to another country, international debt collection is still possible. In fact, it is a growing field. You don't stop owing money just because you moved to a different town, so it makes sense that the same would follow if you were living in a different country.
International debt collection has numerous problems specific to it that must first be addressed. The simplest and most obvious is the language barrier. If you're attempting to do research on a client that lives in Japan, it makes sense that you gain the services of somebody who is fluent in Japanese. Although the old adage is that everybody speaks English, not everybody speaks it well enough to discuss something as complicated as debt collection.
Next you should figure out the laws that are in place regarding international debt collection in the country you're trying to work in. Take, for example, the laws regarding bounty hunting. Whereas bounty hunting is a legitimate last resort in the United States, it is illegal almost everywhere, at least if done by a foreigner. Obviously, you do not want your debt collection to end in your arrest, so you should work on learning all you can about the country you are trying to find your debtor in.
Finally, it may be best for you hiring a professional agency to handle your debt recovery services, especially if you are trying to perform international debt collection. Debt collection is a highly regulated activity, so it makes sense that you work with an expert that will know the ins and outs of international debt collection.
by Michael Gillen
International debt collection has its own pitfalls, but it's a crucial part of any debt recovery services plan. In the global village in which we live, it isn't realistic to assume to all of your debtors are going to remain within the United States. Considering our history as immigrant nation, it makes sense that people will have connections in foreign countries and, if they no longer want to repay their debt, they could end up skipping town.
The first thing you should remember is that, even if a person has fled to another country, international debt collection is still possible. In fact, it is a growing field. You don't stop owing money just because you moved to a different town, so it makes sense that the same would follow if you were living in a different country.
International debt collection has numerous problems specific to it that must first be addressed. The simplest and most obvious is the language barrier. If you're attempting to do research on a client that lives in Japan, it makes sense that you gain the services of somebody who is fluent in Japanese. Although the old adage is that everybody speaks English, not everybody speaks it well enough to discuss something as complicated as debt collection.
Next you should figure out the laws that are in place regarding international debt collection in the country you're trying to work in. Take, for example, the laws regarding bounty hunting. Whereas bounty hunting is a legitimate last resort in the United States, it is illegal almost everywhere, at least if done by a foreigner. Obviously, you do not want your debt collection to end in your arrest, so you should work on learning all you can about the country you are trying to find your debtor in.
Finally, it may be best for you hiring a professional agency to handle your debt recovery services, especially if you are trying to perform international debt collection. Debt collection is a highly regulated activity, so it makes sense that you work with an expert that will know the ins and outs of international debt collection.
How Do Collection Agencies Work?
How Do Collection Agencies Work?
by Justin Maas
From time to time you may come into contact with a collection agency. Often times people get upset at the collection agency for pursuing them, but that's because they don't comprehend how a collection agency works. The main goal of a collection agency is debt collection. It is their job to get the money you owe back to the creditor. Don't kill the messenger.
The first thing you should know is that collection agencies often work based off of a commission. This means if they don't get you to pay the money you owe they don't get paid themselves. This is why a collection agency will bug you week after week If they don't bug you then you won't repay your debt and they won't get paid. When a collection agency isn't making any money they go out of business. Debt collection is the one way they can make money, so they make damn sure they collect the debts sent to them.
Next you should understand the primary ways a collection agency works to recover a debt. They will most often contact you either through the mail or over the phone. The letters they send are usually form letters that just have your name and the amount of money you owe placed in a blank space. The letters are almost never written in a mean tone. They are just there to remind you about the money you owe and show you that steps towards debt collection are being taken. The phone calls will be the same thing, just a reminder that you owe the money and it needs to be paid before further actions are taken.
If you don't pay attention to the letters and calls from the collection agency they may take you to court. This isn't what you want to happen as it can lead to you losing your personal belongings and having your wages garnished. It is necessary to know that a collection agency can absolutely do more than just send letters and make phone calls. Make sure you are aware of this and don't force the collection agency to take more serious actions.
Now if you are ever forced to come into contact with a collection agency you will have a better understanding of what they do and why they are doing it. Do not ignore them as it can only lead to more problems for you.
by Justin Maas
From time to time you may come into contact with a collection agency. Often times people get upset at the collection agency for pursuing them, but that's because they don't comprehend how a collection agency works. The main goal of a collection agency is debt collection. It is their job to get the money you owe back to the creditor. Don't kill the messenger.
The first thing you should know is that collection agencies often work based off of a commission. This means if they don't get you to pay the money you owe they don't get paid themselves. This is why a collection agency will bug you week after week If they don't bug you then you won't repay your debt and they won't get paid. When a collection agency isn't making any money they go out of business. Debt collection is the one way they can make money, so they make damn sure they collect the debts sent to them.
Next you should understand the primary ways a collection agency works to recover a debt. They will most often contact you either through the mail or over the phone. The letters they send are usually form letters that just have your name and the amount of money you owe placed in a blank space. The letters are almost never written in a mean tone. They are just there to remind you about the money you owe and show you that steps towards debt collection are being taken. The phone calls will be the same thing, just a reminder that you owe the money and it needs to be paid before further actions are taken.
If you don't pay attention to the letters and calls from the collection agency they may take you to court. This isn't what you want to happen as it can lead to you losing your personal belongings and having your wages garnished. It is necessary to know that a collection agency can absolutely do more than just send letters and make phone calls. Make sure you are aware of this and don't force the collection agency to take more serious actions.
Now if you are ever forced to come into contact with a collection agency you will have a better understanding of what they do and why they are doing it. Do not ignore them as it can only lead to more problems for you.
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