Accounts Receivables

Top 10 reasons using a debt collection agency is better than going it alone

Why should my business use a collection agency?

That’s a question we hear often.

The fact is there are enormous benefits to outsourcing your debt collections for a small business and even a larger organization.

Having a reputable debt collection agency represent your business is one of the smartest moves you can make. It can improve your cash flow, save you time and money, and protect you from legal challenges.

Check out our top 10 reasons why using a debt collection agency is far better than using internal resources.

Improved cash flow

Hands down, this is the number one reason your business of any size should be partnering with a reputable debt collection agency. The timely collection of those unpaid invoices […]

2024-08-19T09:26:13-04:00August 19th, 2024|Categories: Accounts Receivables, Small Business Collections|

Unlocking Cash Flow: Why Every Small Business Needs a Bookkeeper

If you’re a small business owner and you’ve been trying to do the books yourself, take a few minutes to understand why hiring a bookkeeper can be a game-changer for your small business.

We know that some of you out there continue to try and do everything in your small business, including all the invoicing, bookkeeping, and financial duties. But that should not be the case. If there’s one thing you should outsource or get some help with, it’s the financial aspects of your small business.

Hiring a bookkeeper to keep your business on track can be called mission-critical. Without detailed attention to your small business’s financial activity, cash flow can plummet quickly.

Reasons to hire a bookkeeper […]

2024-06-11T10:05:33-04:00June 16th, 2024|Categories: Accounts Receivables, Small Business Collections|

How to create and communicate payment expectations for customers

Effective communication can solve many challenges in a business of any size. In fact, it is a mission-critical component of any type of business. Whether it’s internal or external communications, every business needs to make this a priority.

When it comes to cash flow in an organization, this is a critical area where strong communication is key, and consistent communication can make a difference.

Being crystal clear on payment expectations with customers and clients can drastically impact your cash flow.

Clear expectations help prevent misunderstandings and ensure more timely payments. They can also protect your business’s financial health, promote transparency, and enhance the trust you have with your customers.

Check out our quick guide to understand why payment expectations […]

2024-06-11T10:05:55-04:00June 13th, 2024|Categories: Accounts Receivables, Small Business Collections|

What are the most common myths about debt collectors?

There are countless myths about debt collectors and the debt collection industry as a whole. Debt collections in many circumstances can be a complex situation for both the business trying to recover money and the consumer trying to navigate financial difficulty.

If we go back to the nightly news programs of past, many of us remember the segments that only focused on some negative behavior of a chosen few working in the industry.

However, that’s just not how the debt collection industry operates currently. Collection agencies play a mission-critical role in the businesses they serve and the overall economy.

But there are still many myths floating out there.

If you want to learn more about the positive aspects of […]

2024-05-20T09:21:24-04:00May 23rd, 2024|Categories: Accounts Receivables, Small Business Collections|

Overcoming common debt collection challenges for your small business

Every size business, whether a small business or a larger organization will have to manage late and non-paying customers. It’s just a reality of being in business and part of the accounts receivable process.

Not every customer is going to pay their bills on time. That would be nice, but it just doesn’t happen for a wide range of reasons. Some of those reasons are legitimate and other reasons will challenge you and your staff.

Keeping current with accounts receivables and maintaining cash flow are constant challenges of running any small business. That’s when a small business needs to decide to implement some form of debt collection activity.

Let’s examine the various challenges a small business faces with […]

2024-05-20T08:42:38-04:00May 20th, 2024|Categories: Accounts Receivables, Small Business Collections|

How consumers can have a positive experience with a debt collector

If you are a consumer, struggling with debt, you should know that not only can debt collectors help you navigate a challenging financial situation, but you can also have a positive experience and favorable outcome.

Gone are the days when collectors just got on the phone and demanded full payment. That’s not the way debt collections work. A professionally trained collector listens to consumers, seeks to understand unique situations, and creates an environment where two people can reach a solution.

If you’re looking for tips on turning a call from a collection agency into a positive experience, check out our advice here. […]

2024-05-13T09:03:50-04:00May 15th, 2024|Categories: Accounts Receivables, Advice for Consumers|

Understanding realities-why consumers struggle to pay on time

There are numerous legitimate reasons why a consumer might struggle to pay your business on time, or at all and many of them stem from financial difficulties.

As business owners, executives and others keeping an eye on the bottom line, you may get angry because some customers have not paid your business and you’re left wondering why.

However, as we indicate here, many circumstances limit a consumer’s ability to pay your business, and they should be considered.

If you want to better understand why some of your customers are not paying, take a look at our insight below. […]

Your business went to small claims court-Now what?

Many organizations and commonly small businesses will attempt to get customers to pay on outstanding invoices through various methods. However, for a wide range of reasons, small businesses can struggle to get timely payments, which ultimately affects cash flow.

One method that many small businesses have employed over the years is taking customers to small claims court. It’s relatively inexpensive to file a claim, and if you have paperwork to back up your claim, your business will often achieve a favorable judgment. That’s good news.

The bad news? A small claims judgment is just that, an order from the court for the client to pay your business. And for the most part, the authority ends there.

In short, […]

2024-03-12T10:52:57-04:00March 15th, 2024|Categories: Accounts Receivables, Collection, Small Business Collections|

Debt collections-your mission critical part of business cash flow

A healthy debt collection process helps businesses of all sizes maintain positive cash flow which is critical for many reasons.

Cash flow is the backbone of any size business and positive cash flow keeps a business healthy and strong. It allows for consistent operations, a healthy bottom line, meeting the needs of your workforce and the confidence to know that you have the resources to grow if needed.

Your business must have positive cash flow!

Let’s go through some of the obvious and not so obvious reasons why debt collections is an integral part of your organization’s cash flow. […]

2024-03-12T10:48:35-04:00March 13th, 2024|Categories: Accounts Receivables, Small Business Collections|

Time is Money-the true cost of in-house collections

If your organization is burdened with negative cash flow, your ability to keep customers current in their financial obligations becomes mission critical. Approaches to achieving that and getting customers to pay you regularly differ.

Many organizations still rely on in-house debt collection teams as part of their accounts receivable program. While in theory, this may have moderate benefits, relying on internal resources for all your collection activity may ultimately be a negative. The obvious is the cost associated with maintaining those resources internally.

We always advise organizations to conduct proper due diligence with late-paying customers, including regular communication and procedures for following up on late payments. But at some point, those efforts can become ineffective.

If you run […]

2024-03-09T10:23:53-05:00March 11th, 2024|Categories: Accounts Receivables, Advice for Businesses|
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