Collection Agencies: Five Common Myths
Collection agencies get a bad rap. Some of the criticism, especially about past actions, is deserved. No one likes owing money and some collection agencies have been bad actors. The debt collection industry has greatly evolved due to regulation, legal environment and customer input. Even so, there are some common myths that still remain. Let’s […]
Collection Agency: Don’t Blame Them If…
The right collection agency can benefit your business. It is important to hire an agency that shares your goals and reflects your style. A collection agency does a great deal more than phone calls and credit reporting. There are things, however that a collection cannot do. If you do not have a contract that allows […]
Collection Agency: Information Needed?
Clients often ask what types of information we need in order to collect debt for them. While the short answer is, “Everything You’ve Got!” we do want to streamline the collections process as much as possible. Here is a short list of the most important items: If you receive updated information during the collection process, […]
Know Your Customers and How They Pay
Credit customers are a great way to increase sales. If you are smart about how you grant your customers credit, you will be ahead of your competition. However, if you do not have a plan or if you have a plan and do not follow it diligently, your cash flow will suffer. First and foremost, […]
Collection Agency Maine: How to Get the Best Results
If you have hired a collection agency, congratulations! You have taken an important step towards improving cash flow and saving time and effort. In order to get the best results, however, you must work closely with the collection agency. Effective communication with the agency is key. You should expect your collection agency to keep you […]
Debt Collection Costs: How to Control Them
Debt collection costs – who doesn’t hate them? I get it. You don’t get paid and have to pay someone to get your money for you. It stinks. On the other hand, bad debt sitting on your books doesn’t do anything for you and your business. You can’t use it to grow your business or […]
Eight Signs it is Time to Hire a Collection Agency
You have a growing small business, are “doing everything right”. You use customer contracts and have a good plan to recover bad debt in-house. When do you need to hire a collection agency? Here are 8 signs you need to get some outside help You have a growing number of receivables over 90 days past […]
Debt Collection, Inflation and Recession: Are You Ready?
Will inflation continue to rise? Will higher costs erode consumer confidence? Will fewer sales usher in a recession? The “experts” all agree on one thing, and that is that the economic signs are mixed. Stock market and employment numbers are strong, yet inflation is still high and consumer confidence is low and getting lower. Recession […]
How Reduce Your Cost of Collection
You can significantly reduce debt collection costs with a customer contract before you grant customers credit. However, too many small business owners do not have a written contract in any form. If you wait until after the transaction, it is, as my mom would say, “Closing the barn door after the cows have gotten out”. Good solution, […]
Accounts Receivable: Breaking Up is Hard to Do
Accounts receivable are an asset, but in order to be of value, they have to be converted to cash. Although some companies may enter into factoring arrangements and pledge receivables, most cannot. So basically you cannot use receivables to pay your employees or buy new equipment. What is accounts receivable? Accounts receivable (A/R) are defined as […]