Debt Collection – The Basics – How To Choose A Debt Collection Agency Which is Perfect For Me?

Unless your business operates on the cash basis, many businesses will face the difficult situation of being stiffed for the payment, maybe due to some bounced check, accident or some debtor neglecting his duty to pay. All this creates a difficult situation for you where you find it cumbersome to collect on all these overdue accounts without any legal expertise.

Nobody would like to get involved in a situation where they would have to continually chase their debtors for payments which are due. However, in some conditions it is unavoidable and this becomes a major inconvenience to the business owner as he is not competent to handle it all alone.

It is a fact that unpaid accounts are detrimental to the business sustenance and growth. Therefore, timely collection of these delinquent accounts can surely save businesses from turning bankrupt. As there are several laws in every state as regards to the fair debt collection procedures which should be followed, it is usually difficult for in-experienced people to undertake collections in a proper way. Therefore many businesses today hire the services of an efficient debt collection company for taking care of all their unpaid debts by collecting them.

In several cases, companies have just limited access to the vital information about their customers. An experienced collection agency incorporates advanced technology which permits them to do proper research on the customer before proceeding further to collect debt from him. Therefore, by adopting these methods they gain complete knowledge about customers who owe money before making demands or suggestions to them to repay the amount. These extra details secured by the debt collection company makes the collection process fast and efficient.

A collection company usually takes its fee from the actually collected dues, therefore unless it gets a debtor to pay up, it won’t get paid. These debt collection companies are legally certified and protected by the Errors and Omissions Insurance, which completely protects your company in case of any mistake.

A professional debt collector knows the rules and regulations in a fair debt collection and is experienced in dealing with all types of customers at professional and personal level. The commercial collection company will be aware of what they need to do for collecting your unpaid debts. Mostly agencies prefer to talk with all your overdue account holders and try to ascertain as to why they have not paid the amount which was due from them. In case they are not in a position to pay the entire debt immediately, these agencies work with the customers to work out some payment plan. If the customers just forgot to pay your debt, then a debt collector will usually act as a very firm reminder to them.

Apart from this, there are several other services available to the clients from a debt collection company, beyond just contacting the debtors and securing the unpaid money. Several agencies even communicate through email or fax with their clients to provide them important updates on their current situation. This also includes any alerts on the receipt of payment from some customer or when a particular company goes out from a business.

A final demand letter is another important service provided by the collection company which makes the debtors aware that business is really serious about the return of debt. A demand letter on the letterhead of debt collector lets a customer know that their situation has turned serious and the original company no longer desires to handle it. Normally this action yields immediate results most of time and helps in avoiding any legal action.

If all other options have been explored and still there is no chance of debt being recovered, legal action may become necessary. In such cases, a debt collection company may handle this debt in the litigation stages as well. Such companies have lawyers in their National and International network everywhere. Clients have the comfort of not dealing with multiple agencies or paying any upfront fees to attorney as they need to pay only the filing charges. They also act as middle man so that a company requires only one contact person for all their cases.

Ideally a business to business debt recovery must be based on some amicable mechanism for achieving success with the collection of residual debt amount. The pattern of communication must clearly be according to the FDCPA instructions. Any type of deceptive or contempt information in the communication can immediately result in the violation of the law, which can impose a civil liability.

Before hiring a collection agency, you must do adequate research to locate a company which will work as per your company’s requirements. You can consult other businesses in your sector for recommendations and they will be happy to share this information with you. You must also ensure that the debt collector has prior experience in managing the type of debts which you need collected on; a distributor of hair products would not like to use a debt collector who specializes in the unpaid grocery bills.

The debt collection mechanism for businesses involves appropriate integration of requisite technology as well as experience. Tools like automated messaging service can easily be incorporated for gaining timely results. Collection agency should possess all the basic skills like investigative ability and persistence in order to track the debtors. Actually business to business collection requires organized and systematic strategies combined with some strong tactics to accomplish the mission.

You should also ensure that commercial collection company which you would want to hire possesses a valid license for collection in your state. Hiring some collection company which is not licenses in your specific state can lead to some serious legal issues in future, so you must verify and make requisite research to find a collection company which is just right for your requirements.

In closing, hiring the services of commercial collection agency is a smart way to collect all your overdue debts without any wastage of your man-hours or company’s time. You can easily regenerate income which you once considered as gone in a legal and safe way by hiring an efficient debt collection agency.

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Recover Your Receivables With A National Business Collection Agency

Let’s face it, there is almost no other industry where a business needs the services of a professional collection agency more than the online, payday loan business. It is simply the nature of the beast that we deal with rapidly mounting receivables, created by defaulting customers, who think that payday lenders are ripe for the picking and online electronic loans are so easy, they just have to be free. Unfortunately for the debtor, of course, they are not and they cost online lenders millions in losses.

This is where a good collection agency comes in. They have the personnel and resources to turn those losses into profits, both directly and indirectly. Directly, they can and will collect those delinquent accounts and turn them into revenue. However, there are also indirect results, which are often just as lucrative, if not more so, than the direct cash flow. These include, but are not limited to, a decrease in substantial overhead wasted on turning an employee, or usually dozens of them, into effective debt collectors. Many companies discover too late that their debt collector costs them more than he or she actually collects, unlike a professional collection agency that does not cost you a dime unless they collect. Try that with an employee! Furthermore, with a collection agency, there are no payroll taxes, equipment costs, sick days, or drama. Besides, the truth is, no matter how much a potential employee says they have collected and how good they are at it, not everyone is cut out to be a debt collector. The truth is that they often cost a company a pretty penny before the employer realizes they’re not worth the paycheck they are receiving. With a professional collection agency, you get what you pay for. Those receivables don’t sit on someone’s desk while he or she draws a weekly paycheck with minimal results.

In our experience, both small and large businesses, with any amount of receivables to be collected, should turn to a professional collection agency to ensure that their receivables actually get collected, not just shuffled around from one employee’s desk to another, with little to no success. The more time you waste in making this valuable decision, the less chance the debt will be collected since they become less viable as time passes.

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What to do when you cant find your debtor

Unfortunately, there comes a point in every business where you have to collect on delinquent accounts. With the proliferation of allowing customers to pay with credit cards and checks, it has become extremely too common when you inevitably have a customer who either refuses to pay their bill or forgets to pay their bill. When you have one of these situations, you are left with very few options. You may attempt to contact the debtor and try to recover the debt personally, but this is often extremely time-consuming and overall unsuccessful. A better course of action is to employ the services of a debt collection agency that will work to recover your debts for you.

If a customer has a debt with you and they cannot be reached, they are more than likely in other financial troubles and are trying to avoid being contacted. By choosing to hand over your debts to a debt collection company you can leave the task of trying to locate your debtors to a professional national collection agency like AccountsReceivable.com.

It is a very cost effective method to allow a debt collection company to collect on all of your delinquent accounts. By allowing a professional, national collection agency to handle the collection process for you, you are guaranteeing that they will negotiate the most return on your money for you. Often times, a business is unable to collect their own debts simply because they are unable to track down the debtor and even if they do, they are ill-equipped to negotiate with that person. Negotiating with a debtor over a past due debt are often times an uncomfortable process. It is almost always best left up to a professional to deal with those types of conversations.

A debt collector will meet with your company to analyze all of the debts and delinquent accounts that remain in your portfolio. That debt collector will then begin to compile contact information on those debtors through his national collection agency. A debt collection company is able to put a debt collector into the field and support him with all of their available resources. Collecting on debts is their sole purpose, and they are extremely efficient at it. You should be able to focus solely on running a successful business, not debt recovery. By employing the services of AccountsReceivable.com you will not have to concern yourself with the unpleasant task of collecting on delinquent accounts and can instead put all your efforts into maintaining a profitable and sustainable business.

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Finding you debtor’s assets, and how not to waste money

Customers can be quite deceiving when it comes to meeting their financial obligations. Some customers decide to relocate, change phone numbers and addresses making them untraceable. In the event that a businessperson decides to play the role of debt collector, it will consume so much time and money trying to locate the customer. This period of time can be used to create more profits in the business as compared to following a customer across different states. A debt collection company takes care of this burdensome task on behalf of the businessperson. In the company, there is an agent that will take over the accounts of the businessperson and collect all debt owed. This means that the national collection agency operates in many states across the US, making it easier to locate a customer who has some debts.

A debt collection agency will first check out how much the customer or customers owe the businessperson. Under conditions where the customer refuses to respond to letters sent for payment and cannot make the payment in full, it is very advisable to hire a collector from the national collection agency who will help keep the losses to a minimal level. This is possible because the debt collector will locate the customer’s assets very easily and provide financial consultation to ensure the debt is paid even if it is not in the full amount. Certainly, partial debt recovery is more preferable to no recovery, especially when the debt owed is a large amount.

Some customers decide when to pay and when not to pay. This kind of action can only be solved by a debt collection company because the debt collector will act as the businessperson’s accountant or book keeper. This means that the customer will not have a say in regards to the terms of payment and will have to pay what is owed directly to the debt collector. This saves a lot of time and money of trying to convince the customer to pay or trying to locate the customer. There are customers who make repetitious claims regarding their inability to pay the debt. Indeed, people sometimes have sincere financial troubles and are unable to pay, but allow a professional debt collection agency like AccountsReceivable.com to ascertain the validity (or its lack thereof) of these claims. We have the expertise and resources necessary to deal with these types of debt recovery cases.

Cases where customers refuse to take the responsibility of debt repayment during marital issues are widespread. Such cases can only be handled by a professional debt collector from a national collection agency. The customers will present a divorce decree stating who is responsible for the debt and this can be done fast enough before the guilty spouse disappears. A businessperson will not be able to solve such an issue in time and this is another instance when a debt collection company comes in handy.

The debt collection company takes the responsibility to look at all the assets owned by the debtor. This will provide a good platform of debt repayment because the debtor will be asked to sell some of the assets in order to pay the debt. The main goal of AccountsReceivable.com is to recover all of the money owed even if it means pursuing legal action.

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How is accounts receivable funding different than a loan from a bank?

Is your small business in financial trouble? Do you have several thousands in accounts receivables, but are unable to get the money now? There is an option that can get you your money now and with ease! An accounts receivable funding company can give you a type of loan. However, it is not necessarily a loan per se. A company will give you money based on how much your customers owe you, then you pay the company back when your customers pay. Of course, there is a small interest rate associated with this loan as they too must make a profit. Why would one choose this type of loan? There are several reasons to prefer an accounts receivable fund over a standard loan.

To begin, an accounts receivable fund and factoring helps you get money immediately, just as a normal loan would, except you have the money coming in from your customers to pay it back. When your customers pay you, you can immediately pay the loaning company back the amount they loaned you. This creates security within the business and ensures the ability to return the money that you received. Using receivables as collateral is highly attractive to anyone taking out an accounts receivable fund. Loans can people into financial trouble because they do not have sufficient funds to repay the loan and this is where the accounts receivables come in. You have a guaranteed way to pay back your loan on time and with ease.

The second benefit of using an accounts receivable loan vs. a standard loan is the higher accessibility. With a regular loan there is no guarantee to the loan provider that the money will be returned. However, with accounts receivable to back up your credibility you can get your loan faster and request larger amounts. This allows for increased spending, more business expansion, and increase your revenue more quickly.

Thirdly, an accounts receivable loan can help your business in a time of need. If you need cash fast, but do not have the time for a traditional loan, an accounts receivable loan can get you your money fast. Accounts receivable funds can be great collateral for cash and are easy to pay back.

If you need quick cash to cover your bills or expenses, why not use your accounts receivable to ensure a quick and easy loan that has more benefits and functionality than a traditional loan? Contact AccountsReceivable.com today for more tips on whether this option is right for you!

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Asset Tracing – How Investigations Are Done

An asset is defined as anything owned that is capable of cash conversion or the total resources of a person. In most cases, asset tracing investigations are conducted during divorce or child support proceedings. The only two avenues available for asset tracing are either attempting to do it yourself or retain the services of an asset-tracing professional or agency. Before deciding to act on your own as an asset tracer, it is important to consider the time, the various intricacies involved and the likelihood of success you can reasonably expect to achieve.

The initial step involves gathering accurate information regarding the person’s full name and any possible pseudo-names along with date of birth. Knowing the place of birth could be a factor for those born in another country. While most individuals have a social security number, persons who are self-employed subcontractors or employed in foreign countries may have a different type of employment identification. Current and former addresses are an important tool as well. Certainly, the more contact information you have for the debtor in question, the easier it will be to locate them and their associated assets.

While several Internet websites are a vehicle for acquiring land-line telephone numbers, they do not provide access to cellular or mobile phone information. Using online people-search sites usually results in a large number of hits which then involves a time-consuming elimination process. Moreover, it is frustrating to learn that once a viable candidate has been selected, the site requires a membership fee prior to gaining full access to further information.

Once personal information has been gathered, the next step usually involves the search for and examination of public records. Entering someone’s name into your favorite search engine will only provide sites regarding genealogy data or social networking sites such as Facebook. For security reasons, visiting a physical public records office usually requires giving the records clerk a valid reason for the search before access to the records area is granted. A public records search usually involves combing through volumes of data containing divorce, marriage, personal property, local and/or state income tax filings and real estate deeds. Indeed, the plethora of information would certainly be extremely time-consuming.

Among the many reasons to consider hiring an asset-tracing professional is their ability to gain access to records not available to the general public. Financial particulars surrounding divorce, lawsuit settlement trust accounts, bankruptcy and court-ordered judgments are only accessible by licensed asset-tracing investigators. Asset-tracing professionals know how to prepare all information in a court-admissible format, thereby alleviating you from having to perform this daunting task.

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10 Tips For Hiring A Collection Agency

Occasionally, a business will have to deal with the issue of collecting unpaid debts. It may seem unsavory, but it is a necessary fact of running a business. Selecting the right debt collection service can make the process manageable, if you keep these ten tips in mind:

1. Find a debt collection service that is experienced with recouping monies owed to businesses that are similar to yours. Is your business home-based? Is it a small organization or a large company? Choose one that has handled the debt collection for others in your category, for best results.

2. Ensure the collection service does skip tracing. This means that they are experienced at locating debtors who may have moved, leaving no forwarding address. They need access to various data bases in order to do this.

3. Make sure the agency is fully licensed in your state. If you know that the debtor lives in another state, find a debt collection agency that is also licensed to practice in that state. Generally, an agency that is licensed nation-wide is suitable for debts that emanate from a variety of locations.

4. Always ask to see proof that the debt collection agency carries “errors and omissions” insurance. This is very important, since it covers both you and the debt collection service from being sued by the debtor for illegal collection tactics.

5. Make sure you understand the agency’s fee structure. Is it a flat fee upfront, or on a contingency percentage basis? This fee should be clearly spelled out and easy to understand.

6. Ask how the debt collector will contact your debtor. Will the primary communication be by mail? Do they also make phone calls, and how often? Be sure you are not hiring a company who employs illegal tactics. If the collection agency uses form letters, you should be able to read them over.

7. Good debt collection agents are easy to contact. Make sure they have an easy way to maintain two-way communication.

8. Is this debt collection service willing to keep you up-to-date on your case? That is, regular reporting as to whether any change has taken place or not.

9. Ask if the agency is willing to let you view their financials, or an audit report. There have been instances where a debt collector claims his client as a capital fund, which is illegal. If an agency is unwilling to be transparent, then perhaps it is best to move on to another firm.

10. Does the collection agency practice within the limits of the Fair Debt Collection Practices Act? This is extremely important, as not adhering to these regulations could allow the debtor sue or have the debt erased.

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Why Hire Debt Collection Agencies to Recover Your Money?

Any person who lends money directly or who loans valuable assets will inevitably need to collect what is not being returned to them. Some customers are simply irresponsible, while others suffer unexpected financial losses and can only cover their basic expenses in lieu of meeting the financial obligation they have to your company. Whatever the case, any business person who protects his or her assets must be willing to recover, foreclose, and repossess in order to minimize losses. A debt collection agency can make this unpleasant task run more smoothly.

Business people who lend are not monsters, and honestly wish to avoid being the bad guy; however, it is impossible to run a business if revenue is lost to defaulting clients. The common strategy is to respect short term financial troubles and give a few months of leniency. It is even possible to repackage a debt so payments are reduced. Should these options fail, or attempts to contact the customer are not successful, then the best decision is to hire a debt collection agency.

If a business attempts to recover debt on their own accord, they might find themselves involved in difficult situations that they are ill-equipped to mitigate. A debt collection agency understands the best ways to handle repossession, and in fact are even expert at finding alternatives that work for both the lender and the borrower. Sometimes dealing with defaulting clients is a matter of persuasion. Finding working alternatives is often much better than repossession, because very often the asset being recovered will be depreciated in value.

Debt collection agencies can handle many of the details that might be difficult for the lender to do directly. Debt collection is about repossession, but can also be a matter of investigating a client to determine their ability to pay and also examining their assets to see what money can be liquidated in order to make monthly payments. Debt collection is not about muscling into a home and taking a car; it is more about the fickle legal side and examining how to resolve problems in a lawful and efficient manner.

Debt collection agencies can often persuade a borrower to resume monthly payments, or can convince a judge to liquidate savings in order to pay the remaining balance. Finding the simpler solution first can prevent both the lender and the borrower from having an unpleasant experience, and getting the payment schedule back in order saves both parties a lot of time and money.

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Could I Use My Local Small Claims Court to Sue a Large Out of Town Company?

Having financial disputes is quite commonplace between companies and their respective customers. During this situation, a company provides a product, service or credit line to a customer and naturally, they are expected to pay the due amount. However, life invariably happens and the customer is somehow unable to or does not bother to pay back the amount owed. When this happens the company has a considerable conflict to deal with. In some scenarios they can file a lawsuit or take the matter to mediation in small claims court. However, this can be a very costly and time consuming process. Another option, which is extremely beneficial, is using a collection agency. A collection agency is a company that offers to represent and recover the amount of money that is owed to the original company.

Whenever there is a financial dispute, companies will sometimes have difficulty recovering a debt that is owed to them. This is especially true when they are dealing with people or companies that are located in a different city, state or even country. However, despite this difficulty, using a collection agency is among the better options in order to collect money that is owed. Instead of suing non-local company, using a collection agency can and usually is the better alternative.

There are several reasons why a collection agency is a better alternative as opposed to filing a lawsuit or taking it to small claims court. First, a collection agency can offer representation and collect the debt for you while allowing you to sit back and focus on other things. Using a collection agency is also more cost efficient as you would not be responsible for high court and legal fees that are often associated with filing a lawsuit. With a collection agency you can also even have an opportunity to sell the debt and receive some of the money for what you are owed.

Our goal is to help you realize the employing the use of a collection agency to recover on your delinquent accounts is simply the intuitive choice. With a collection agency you will have a dependable entity that will work hard and exert every effort to get the money you are owed. This is a great alternative to a lawsuit, especially when dealing with delinquent payers from out of town.

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Collecting Accounts in Small Claims Court

The skills necessary for collecting accounts in Small Claims Court are as follows:
After the presiding Small Claims Judge decrees a judgment, you will be able to collect the debt awarded. Collecting small claims judgments is difficult to do on your own, unless you have the expertise or experience. The debtor can hide and refuse disclose their real assets. The debtor can also avoid settling the Judgment with you by disappearing, effectively prolonging payment for years at a time. Alone, you stand almost no chance of recovering your money or items owed.

A defendant who owes you will usually not attempt to satisfy the Judgment unless prompted with a motivating factor. Often, debtors are financially broke and cannot pay the judgment owed to you. These same debtors, however, own property, real estate and other valuable income sources that can be liquidated. A debtor will not willingly sell that expensive piece of jewelry, car or house to satisfy your judgment as they tend to feel that if you are out of sight, you’re out of their mind.

A Collection Agency is a sure way to get you back into the mind of the debtor and professionally coerce them to satisfy the Small Claims Judgment against them. An experienced collection agency is skilled in the art of recovering money from debtors who choose not to pay. Legal remedies and solutions can be leveraged against the debtor from the collection agency. A debt recovery agency also has the time and resources to locate the debtor and legally force them to disclose their assets. Often, a collection agency will produce positive results in collecting your debt in a relatively short amount of time.

When a collection agency is hired to collect your debts, the debtor knows that you are serious. More often than not, the debtor becomes nervous and scared and decides to settle the debt. Attaching a debtor’s finances is a remedy that a collection agency can use to recover your money. By garnishing a debtor’s wages and assets, the debt is satisfied from payments negotiated from the collection agency or property and valuables liquidated to satisfy your judgment. Debtors are more likely to respond to a collection agency’s request and enter into a solution voluntarily. A collection agency can, however, also enforce the judgment against them through legal recourse. Debtors found in the position of having to litigate with collection agencies are up against professional collection specialists who know the law and will use it collect your money.

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