Collection Agency: More than Phone Calls

Most people believe that a collection agency simply makes phone calls and reports debts to a credit rating agency. Certainly telephonic contact is an important part of the process. Although I contend it is overrated, credit reporting can perhaps assist with recovery. So what else does your collection agency do? Collection agencies have specialized tools […]

Collection Agencies: 5 Biggest Misconceptions

Collection agencies get a bad rap. Some of the criticism is deserved. The very idea of receiving a collection call is upsetting. Some collection agencies have been poor actors. If you are a business, you hate the idea of hiring a collection agency. However, some of the criticism comes from common misconceptions. Let’s take a […]

Debt Collection Agency Fees: How They Work

Small business owners everywhere are looking to reduce costs and improve efficiency in their companies, and recover money owed to them.  Some business owners just write off their bad debt hoping receive favorable tax treatment, but this is a big mistake since most small businesses are on a cash accounting basis, and there is no tax benefit […]

Debt Collection and Leverage

In the past month, we have recovered the following payments for our customers: A patient paid her bill because she needed an appointment A marina customer paid delinquent boat storage fees so that he could get his boat ready for summer Contractor paid a two year old bill so that he could buy more product […]

Accounts Receivable Management: Not a Spectator Sport

Accounts receivable management is essential to the financial health of a small business. All too often small business owners forego accounts receivable management, claiming that they are too busy with sales or day to day operations. Everything is fine, they will say. We grew our sales by 50% this past year, and we have to […]

Medical Debt Collection: Did You Intend to Offer an Interest Free Loan?

Over the years, I have worked with a number of medical and dental practices, helping them collect delinquent patient accounts and working with them to improve their credit practices. I am certain that any business, especially a medical or dental practice, can reduce the bad debt in their business. Consider the following ideas. Verify and […]

Ten Tips to Maximize Recovery of Delinquent Customer Accounts

Do you want to send fewer customers to collections? Do you want to maximize chances of recovery of the accounts you do send to your collection agency?  Here are some ways to do it. 1. Establish a clear and consistent credit policy and stick to it. • How much credit are you willing to extend […]

Small Business Debt Collection Resolutions for 2021

All those in favor of ending 2020, raise your hand.                             Certainly 2020 was a difficult year in many ways, but the good news is that if you are reading this, you are still standing. This past year has also presented opportunities […]

Collection Agencies and How They Work: Is it Magic?

If you are like many small business owners, you have taken time from your business to work on bad debt collection. In some cases, you may have chased a customer for months without success. When you decide that customer over to a third party collection agency. When the customer pays the collection agency, you are probably […]

Reduce Cost of Debt 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, […]