What Do I Want and Need from My Collection Agency for My Business?
Getting paid is only part of the reason most businesses work with a collection agency. The right agency should help your business recover money, protect customer relationships, control costs and make your accounts receivable process easier to manage.
When a customer doesn’t pay an overdue invoice, you the business owner have a problem that goes beyond the money sitting on the books. And you’ve probably experienced this. Someone on your team has to make the calls, send the letters, follow up, keep up with documentation and figure out next steps.
And whether you’re working these accounts in-house or with an agency there’s a bigger concern.
How will my customers be treated?
Many business owners and operators want to know […]
How AI Is Changing Debt Collection Operations, Without Replacing Collectors
By Mike Hiller:
After more than 20 years in collections, I have learned that the hardest part is rarely finding another account to work. It is figuring out which action gives the consumer a real path to resolution while giving the business a reasonable chance of collecting.
Most operations have felt the pressure: more accounts, more channels, more consumer expectations, and absolutely no reduction in the need to document what happened. That pressure is why technology investment has become a business decision rather than an IT project, with 52% of agencies reporting significant investment to support productivity, margins, and compliance. newsroom.transunion
AI can help because collectors should not have to spend their best hours sorting through low-probability […]
What Makes a Debt Collection Agency One of the Best Places to Work?
Being recognized as one of the best places to work in any industry is an accomplishment any company should be proud of. But earning that recognition as a collection agency year after year states something more meaningful.
The recognition suggests that a company has built something that goes far beyond competitive salaries, good benefits and even a comfortable workplace.
It says that it has built a culture people truly believe in.
American Profit Recovery has once again been recognized as one of the best places to work in the collection industry. The culture that makes that possible is built around a handful of core qualities.
Hard work, positive attitude and integrity.
These values don’t just appear in our employee handbook. […]
The 90-Day Mistake That Makes Collecting Your Money Much Harder
Businesses of any size should expect a certain amount of late payments from customers. However, one of the biggest and most expensive mistakes companies make is waiting far too long to take action on those late invoices.
Business owners, operators, and finance teams often tell themselves they’ll give the customer another month, or hope another reminder email or paper statement will finally prompt payment. Unfortunately time is rarely on the side of a business when it comes to collecting overdue invoices.
The reality is simple. Older invoices become less likely to be paid in full. Waiting 90 days or more can dramatically reduce your chances of ever recovering what you’re owed.
Read why letting unpaid invoices go far […]
Why good commercial customers sometimes become bad credit risks
Business owners and operators often assume that customers who pay late are intentionally avoiding their obligations. While that is certainly true in some cases, many overdue accounts result from financial challenges and organizational circumstances rather than dishonesty.
Understanding why good customers become bad payers can help you respond more effectively, protect important business relationships, and recover more of the money you’re owed.
Let’s take a look at why loyal customers sometimes fall behind on their financial obligations to your business and what your team can do about it. […]
You’ve waited too long to send customers to collections-Here’s what to do next
Many business owners and operators have said the same thing. “I’ve let this go on for too long.”
What they’re talking about is getting their customers to pay on time.
The customer promises they will pay next week. Then another month goes by. Maybe an email comes in explaining why they need more time. And you give them more time.
You know you need to preserve the relationship with your customer, possibly avoid conflict and believe they will eventually pay you. But that never comes in.
Now you’re looking at multiple situations of aging accounts and you’re wondering why you’ve waited far too long to take appropriate action. There’s no sense in beating yourself up about the situation. It’s […]
Don’t wait until your business is in crisis-Why your growing business needs a collection strategy
How can you avoid a financial crisis in your business or medical practice?
The short answer is to build a strategy and plan ahead for potential cash flow challenges. Not reacting to a problem that has built up over time.
And what if your business is growing? Proper systems help prevent future cash flow challenges in a growing organization.
Your organization may be in a situation right now where cash flow is beginning to tighten. Maybe those customers who were once reliable stop paying on time. And your receivables continue to age. And suddenly, you the business owner find yourself looking for help to help collect some of that money.
A growing business creates opportunity but also risk. And […]
Important terms your business needs to understand when working with a collection agency
If you are an owner or an operator of a small business, you know all too well that unpaid invoices become more than a frustration. They affect your cash flow, ability to meet payroll, growth opportunities and overall, Peace of Mind.
Many small businesses, in particular, reach a stage where those internal reminders and follow-up calls are no longer effective. You and your team are spending tremendous time and energy, yet customers are still not meeting their obligations.
That’s why it’s important to use a reputable small-business debt collection agency. Having that agency by your side and working on your behalf can create dramatic results.
However, understanding the language of debt collections can help small business owners and […]
Why the best debt collection agencies focus on helping consumers and not applying pressure
If you’re running a small business or working in senior leadership in a larger organization, unpaid invoices are creating more than just a cash flow problem for you. They’re creating emotional conflict with consumers.
Regardless of the size of your business, you work hard to earn the trust of your customers. You have delivered the products, provided exceptional service and your team has invested time and resources into that customer.
However, you expect to be paid in a timely manner.
Many businesses, when customers do not pay, can hesitate to get more assertive because they do not want to damage the relationship they have built with those customers they’ve worked so hard for. Many hesitate even further to […]
Why NOT using a collection agency is costing your small business more than just money
For many people who own or operate a small business, hiring a collection agency feels like a last resort. It’s something your small business only decides after exhausting every other option.
However, in reality, not using a collection agency can slowly and quietly erode your business in ways that are far more damaging than you might realize.
As you know, unpaid invoices are not just frustrating you and your team. They are a massive threat to your cash flow, the sustainability of your business, your ability to grow and ultimately the people you employ.
Here are some important reasons why avoiding using a collection agency for your small business can ultimately cost you far more than you think. […]
