Commercial Collections – A Business’ Best Option

Unlike consumer debts, commercial debt balances tend to be considerably higher, often times leaving businesses in a precarious position not having access to much-needed capital. When internal efforts to collect on a commercial debt prove unsuccessful, one of the most important steps a business owner can take is to contact a commercial collections agency…

Unlike consumer debts, commercial debt balances tend to be considerably higher, often times leaving businesses in a precarious position not having access to much-needed capital. When internal efforts to collect on a commercial debt prove unsuccessful, one of the most important steps a business owner can take is to contact a commercial collections agency.

Helping businesses recover past receivables that are long overdue is what a commercial collections agency excels at. Most businesses are unaware of what procedures to take when dealing with outstanding unpaid accounts. A commercial collections agency specializes in those procedures having policies, practices, and systems in place for commercial collections and large debt claims

Considerably more proficient in the debt collection process, a Commercial Agencies employ highly trained, adaptable, and skilled debt collectors to handle the commercial collections for their clients. Agencies are required to do due diligence before contacting the debtor including background checks, corporate structures, skip tracing through non-public database searches, payment histories, and other relevant information and inquiries.

All Local, State, and Federal Regulations must be followed by a Commercial Collections Agency. To do so, many agencies work with local attorneys to ensure their adherence to all regulations and requirements. Continual education is a must for a commercial collections agency to stay informed of any and all new laws and/or changes within the industry; yet another reason businesses should turn to commercial collections services for help in recovering outstanding receivables.

However, though it goes without saying, choosing a reputable and experienced commercial collections agency is key to the success of a business owner when it comes to recovering any unpaid accounts and outstanding debts.

3 Things to look for in a commercial collections agency:

  • Recovery proficiency
  • Professionalism and service
  • Confidence and Trust

Without using the above criteria when choosing a commercial collections agency to recover your outstanding receivables, business owners could find themselves no better off than before

Successful Debt Collection Tips: Effective Phone Conversations

Debt collection efforts can be stressful. One of the biggest mistakes individuals make when collecting on outstanding debts is not communicating properly; none more so than while attempting to collect on a debt via the phone. Deploying the best practices in accordance with national, state and local laws…

Debt collection efforts can be stressful. One of the biggest mistakes individuals make when collecting on outstanding debts is not communicating properly; none more so than while attempting to collect on a debt via the phone. Deploying the best practices in accordance with national, state and local laws is essential to avoiding debt collection missteps and having successful debt collection efforts.

Successful Debt Collection Tips:

Effective Phone Conversations

Though generally seen as the most efficient and effective method for successful debt collection, there needs to be a level of competence and skill to your methods. In other words, Professionalism is key.

Most people are familiar with the horror stories of debt collection efforts by less-than-scrupulous collection efforts. One thing that is common with individuals engaging in these tactics is a lack of professionalism. Here are a few tips you can use ion yourtelephone decorum arsenal to help you in your successful debt collection efforts:

  • Be polite–“Please”and “Thank You” go a long way. Be cordial while still conveying the importance of the matter and the need for a timely resolution.
  • Remember to smile–Yes, the debt collections process is less than desirable and a bit stressful from your end, even more so on the debtor. Your smile will come across and will more often than not put the other party at ease.
  • Avoid anything in your mouth during your call: food, candy, gun, etc.
  • Call during the appropriate hours–Not everyone works a 9 to 5 job, determine the best hours to reach the debtor by phone. You can do so
  • Avoid laying blame–Having debt can be stressful enough without someone making accusations or laying blame. As noted above, be polite. Be cordial. Discuss with the debtor the reason for failure to pay, they may not be what you think.
    For instance, perhaps the other party has a complaint of product or service. By digging deeper you can discover what the complaint is and work to resolve the situation while simultaneously providing a solution to recoup monies owed.
  • Keep a record– Be sure to keep a record of your conversation by taking notes while you talk. In doing so you are able to keep on ongoing log or record of your conversations that you can summarize later and send to the debtor via email or letter post. This will help prevent any miscommunications or arguments over what was and wasn’t said and should include any repayment plans if mentioned.

Recording your conversation

If you plan on recording the conversation, be sure to get the other party’s permission before you do so. You can check your state’s requirements for recording conversations at the following website https://www.rcfp.org/reporters-recording-guide/state-state-guide

Leaving messages.

It is a good practice to assume that any messages left for the debtor will be heard by other parties. Be careful not to disclose any personal information related to the debt to anyone other than the debtor.

On the other hand, if this is a business-related debt, full details regarding the debt can be left on any phone number related to the business or any personal number belonging to the directly related party.

Effective communication is one of many often difficult hurdles you can encounter when attempting your debt collection efforts. Employing a commercial collection agency like Stevens-Lloyd Group, Inc to handle things can help eliminate the learning curve when it comes to successful debt collection efforts.

Give us a call today – Toll-Free: (888) 882-2282

Debt Collection Strategies – Invoice Finance Charges

Are your debt collection strategies like most business owners or are you cashing in on slow paying customers by implementing Invoice finance charges and interest? Debt Collection Strategies: Interest & Finance Charges…

Are your debt collection strategies like most business owners or are you cashing in on slow paying customers by implementing Invoice finance charges and interest?
Debt Collection Strategies: Interest & Finance Charges

Imagine for a moment applying for a loan at a bank. You sit down with the loan officer and somehow manage to obtain a loan for $5,000 at 0% interest. Sounds a bit far-fetched and a little foolish on the part of the bank, doesn’t it? After all, why would a bank loan you money without interest? There’s nothing in it for them; there’s no financial gain for them in taking the risk

However, that’s exactly the kind of “foolishness” you and your business are engaged in with your debt collection strategies if you are not charging interest on your delinquent accounts. In fact, it’s even more so. After all, banks don’t really need the money, however, your business does.

Most businesses are in constant need of capital. In such cases, it is common for a business owner to borrow money from some sort of financial institution, be it a bank, private lender or other business capital. Regardless of the source of the loan, the business will have to pay a finance charge and interest on the money that they borrowed. And yet, no finance charges or interest payments exist in their debt collection strategies and invoicing system when attempting to collect the monies they are owed.

You may find it surprising that when implementing interest or finance charges into your outstanding debts, not only will payment be made faster, you will often receive the interest payment as well. It is a well-known fact that most companies will pay interest bearing invoices first and will relegate non-interest bearing invoices to a later date, often waiting until collection procedures have started. Most businesses use a revolving line of credit. By not paying the outstanding bill, your customer is able to earn, you guessed it, interest on that money

A question you need to ask is how important your services or products are to the vendor. If you are non-essential to the customer, you may find your invoices overlooked in favor of more ͞essential͟ suppliers. Having implemented finance charges into your invoices gives you leverage over the other vendors who do not. Remember, when sending an invoice to a customer, you are competing for their next available accounts payable dollar. It is how well you compete for that dollar that determines your success.

Another factor to consider, by having a finance charge in place, you gain leverage over your customers by having the ability to waive the finance charge in lieu of timely payments.

By applying interest/finance charges to your accounts payable and debt collection strategies, you will help speed up the payment of your invoices by training your customers to either pay according to your terms or to take advantage of your offer to extend your accounts receivables and pay the interest cost. What you will find is that customers will often prefer to extend the collection period paying the interest instead.

Think of debt collection strategies as a chess game: you need to outthink your opponent and stay at least one move ahead of them.