Debt Recovery

Most pool cleaning and maintenance companies have several clients that do not fulfill their promise to pay for the services used.

Unpaid bills can hurt any small business, especially where profit margins are lean, business is seasonal and the competition is fierce. If your business has past-due accounts, the cost of those can go way beyond just the outstanding amount. Here is a look at the real cost of past due accounts and what pool companies can do about it.

Serving Pool Companies Nationwide Need a Debt Collection Agency? Contact Us

The Real Cost of Past Due Accounts

The most obvious cost of having a client that has not paid their bill is the amount on the invoice. You and your company have provided a service and used man-hours and materials to do so. Not being paid for all of this can seriously affect a company’s bottom line.

In addition to the bill, the collection process itself has costs associated with it. Whether it is you personally, the person who manages the account, or an office manager who has to follow up to try and collect, that all takes time. The time that could be spent on the person’s core job which ultimately helps run and grow the business. They say time is money and time spent trying to collect on an unpaid bill loses more money for your company.

If a bill goes unpaid for weeks and months, you face a few, unattractive options. You can write the loss off, but that requires even more time and maybe even paying an expert to figure out if it makes financial sense. The other option is court. There are fees associated with that as well and once you put the case in the legal system, you open yourself up to things like countersuits which could cost even more in the long run.

So, to help contain the costs of past due accounts and keep your pool company on solid financial footing, what can you do?

How to Collect on Past Due Accounts

Debt collection for spa and pool companies requires a systematic approach, this includes assigning overdue bills to a collection agency and putting systems in place so that most bills never get that far.

Working with the right debt collection agency is important. You need to find an agency that understands both your business and theirs. The right agency will not only help you collect more outstanding debt in a timely manner but also do it in a way that is in compliance with all debt collection laws and does not alienate your clients.

An overly aggressive debt collection agency can hurt your company in multiple ways. First, companies that do not adhere to the Consumer Credit Protection Act and the Fair Debt Collection Practices Act can get your company in legal trouble that will cost even more money. Also, just because a client has a past due bill, does not mean you want to burn that bridge. That customer could turn it around and go back to be a valued customer in time. Even if not, you do not want to expose yourself to the damage by a negative word of mouth or online reviews could do to your business. That is why you want to make sure you work with an ethical debt collection agency that has your company’s best interests in mind.

Putting Systems in Place

Instead of wasting time and money chasing past due clients, there are a few other things you can do in addition to handing over past due accounts to a debt collection agency. Requiring that customers pre-pay for service may work in some cases, especially if it is a recurring service. Also, requiring a credit card on file that will only be charged if the payment isn’t received by a certain date can help as well. Finally, setting a well-defined line where you stop a client’s service or stop doing business with them entirely will help you create the most reliable client list you can.

Conclusion 

Small business owners cannot afford to not be paid for their services. That is why swimming pool cleaning and repair companies need to put systems in place to be in the best position to be paid-in-full and on-time. When this doesn’t happen, turning the accounts over to an ethical debt collection agency is the best way to make sure you are paid what you are owed without damaging your company’s reputation.

Maximizing Revenue Recovery: Why Urgent Care Clinics Should Partner with Specialized Collection Agencies Only

The rise of urgent care clinics over the past decade has transformed the healthcare landscape, offering patients more accessible and affordable medical care options. With over 9,000 urgent care centers operating in the United States as of 2023, these clinics have become a go-to choice for patients seeking prompt attention without the long wait times and high costs associated with emergency rooms. According to the Urgent Care Association (UCA), the average cost of an urgent care visit is around $150, compared to an average of $1,389 for an emergency room visit.

However, while urgent care clinics provide essential services, they are increasingly facing a significant challenge: unpaid patient bills. A staggering 32% of American workers have medical debt, and more than half of these debts are in default. This financial strain not only affects patients but also poses a serious threat to the financial health of urgent care clinics.

So, how can urgent care clinics recover unpaid bills without damaging patient relationships or their reputation? The answer lies in partnering with a specialized collection agency that understands the unique needs and challenges of the urgent care industry.

A Highly Rated Agency – Serving Doctors Nationwide Need an Urgent Care Collection Agency? Contact Us

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What Urgent Care Clinics Should Look for in a Collection Agency

1. Healthcare Industry Expertise
2. Strict Regulatory Compliance, including HIPAA.
3. Proven Reputation and High Success Rates
4. Patient-Centric and Respectful Communication
5. Advanced Technology and Secure Data Handling
6. Transparent Reporting and Open Communication
7. Adequate Insurance and Licensing
8. A High Google Rating.

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The Urgent Need for Professional Debt Recovery

When patient accounts become 60 to 120 days past due, the likelihood of recovering those debts decreases dramatically. According to the Association of Credit and Collection Professionals (ACA International), the probability of collecting a debt drops by 15% with each passing month. Delayed action can lead to significant revenue losses that could otherwise support clinic operations and growth.

Why Partner with a Collection Agency?

• Enhanced Recovery Rates: Professional agencies have the expertise and resources to recover debts more efficiently, increasing the chances of full payment.
• Compliance Assurance: Specialized agencies are well-versed in laws like the Fair Debt Collection Practices Act (FDCPA) and the Health Insurance Portability and Accountability Act (HIPAA), ensuring all collection activities are legal and ethical.
• Preservation of Patient Relationships: Trained professionals use respectful communication strategies that maintain patient dignity and loyalty.

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Key Considerations When Hiring a Collection Agency

To maximize the benefits of partnering with a collection agency, urgent care clinics should carefully evaluate potential partners. Below are the most important factors to consider:

1. Industry Expertise

• Specialization in Healthcare Collections: Choose an agency with a proven track record in medical debt recovery, specifically within urgent care settings.
• Knowledge of Relevant Laws: The agency should have a deep understanding of healthcare regulations, including HIPAA, FDCPA, and the Consumer Credit Protection Act (CCPA).

2. Regulatory Compliance

• Adherence to Federal and State Laws: Ensure the agency complies with all legal requirements to avoid lawsuits and penalties.
• Certifications and Accreditations: Agencies accredited by organizations like ACA International demonstrate a commitment to ethical practices.

3. Reputation and Success Rate

• Client Testimonials: Seek feedback from other urgent care clinics that have worked with the agency.
• Recovery Performance Metrics: Inquire about their average recovery rates and how they measure success.

4. Patient-Centric Approach

• Respectful Engagement: The agency should prioritize compassionate communication to maintain patient goodwill.
• Complaint Resolution Process: A transparent system for handling disputes protects both the clinic and patient interests.

5. Advanced Technology

• Modern Collection Systems: Utilize agencies that employ up-to-date software for tracking, reporting, and communication.
• Data Security Measures: Ensure they have robust systems to protect sensitive patient information.

6. Transparency and Reporting

• Regular Updates: The agency should provide consistent reports on collection activities and outcomes.
• Accessible Communication Channels: Open lines of communication facilitate collaboration and quick issue resolution.

7. Insurance and Liability

• Proper Insurance Coverage: Agencies should carry Errors and Omissions Insurance to protect your clinic from potential liabilities.
• Bonded and Licensed: Verify that the agency is properly bonded and licensed to operate in your state.

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Benefits of Using a Specialized Urgent Care Collection Agency

Improved Data Accuracy

Agencies have access to advanced tools for verifying and updating patient information, such as:

• Skip Tracing Services: Locate patients who have moved or changed contact information.
• Bankruptcy and Deceased Records Checks: Prevents pursuing collections from patients who are bankrupt or deceased, avoiding legal complications.

Effective Patient Communication

Professional collectors are trained in:

• Negotiation Techniques: Encouraging patients to settle debts amicably.
• Compliance Communication: Ensuring all interactions meet legal standards, reducing the risk of complaints.

Comprehensive Collection Strategies

• Phased Approach: Utilizing letters, calls, and legal actions as necessary to maximize recovery.
• Customizable Plans: Tailoring strategies to align with your clinic’s policies and patient demographics.

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Conclusion

Unpaid medical bills are a pressing issue that can significantly impact the financial stability of urgent care clinics. By partnering with a specialized collection agency, clinics can:

• Boost Recovery Rates: Professional agencies recover debts more effectively, improving your bottom line.
• Maintain Patient Loyalty: Ethical collection practices preserve valuable patient relationships.
• Ensure Compliance: Adherence to legal standards protects your clinic from potential lawsuits and fines.
• Focus on Core Services: Allow your staff to concentrate on providing exceptional patient care.

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Contact a specialized urgent care collection agency today to learn how they can tailor their services to meet your clinic’s unique needs and help you achieve your financial goals.

The healthcare industry is unlike any other. In other businesses, you provide a product or service and the customer puts cash in your hand (more or less). However, the healthcare industry is very different. With multiple providers, claims to manage and reimbursements to deal with, getting money in the door in a timely manner can be difficult. Where healthcare businesses do not differ from other industries is that it is just important to manage revenue and cash flow as it is anywhere else. To help your healthcare business deal with this complicated receivables issues, here are a few ways to improve healthcare revenue cycle management.

Track and Analyze the Revenue Cycle

Maybe this is something you are already doing. If you are, there are always ways to get better at understanding your revenue cycle. If you are not, it is the number one way to improve revenue cycle management and you should start now. The simplest way to explain why this is so important is with an old business cliché that goes, “you can’t manage what you don’t measure”.

The first thing an organization must do is to set strategic goals and benchmarks. After you know what your ideal financial situation should and could be, you then need to take all the data, from patients and payers and start to see how you are doing in each category. The good news is, there is a lot of data in the healthcare industry to collect and learn from. There are also a host of software programs you can implement to easily help you pull together the data and draw conclusions from it.

Examine Denials and Claims Scrubs 

One of the biggest challenges for healthcare providers is not getting paid, or only getting partially reimbursed from insurance companies. To improve your revenue cycle management, you need to understand why this is happening and take steps to improve your payment rates. To do this, you really need to stay on top of the claims that are not fully paid and either go back to the payer to get what they really owe you or do better with your own processes and procedures in the future.

The most common reasons for claim denials are:

• patient ineligibility
• incomplete patient or plan information
• missing supplemental attachments
• incomplete service information
• duplicate claims
• claims submitted to the wrong payer
• coding error

What do you notice on this list? How about the fact that most of these are avoidable oversites on the provider’s end. When you start to see patterns emerge as to why you are getting claims denied, you can start implementing better practices with both your front-end and back-end staff.

Examine Your Contracts with Payers

The other common reason your healthcare organization is not seeing the reimbursements from claims it should is that the payer is not paying in line with what your contract states. This is a very common problem. Some of the discrepancies might only be a few dollars. It is probably not worth it to do a time-consuming contract review for every small item payment but the problem is, those small numbers add up over time and can cost your business a lot in the long run.

The best solution is to do a contract review for big-ticket reimbursements to make sure you get paid in full on large bills. If you find a certain company is not sticking to the contract with large items, it is worth reviewing smaller items as well on that specific contract. On all others, just make sure you are reviewing somewhat regularly (Annually? Biannually? Quarterly?) to make sure everything is being paid to spec.

Implement Stricter Front-End Process

Healthcare revenue cycle management is not just a function of the back-end of your organization. The front-end has very important responsibilities as well. The more you streamline and improve their processes, the less pressure you put on your back-end to carry the revenue cycle load.

Studies show that more than half of medical bills under $500 are not fully paid. This is particularly prevalent among younger adult patients. By optimizing your point-of-service payments, you can start the revenue cycle on a better foot. By putting in place a strict point-of-service or pre-service payment plan, you can ensure you get the revenue cycle started correctly.

One great way to help do this is to offer pre-service cost estimates so patients know that they are getting into. Data suggests that almost half of Millennial patients say they would be more likely to pay upfront if they received an estimate in advance. Another way is to offer card on file payments. While credit and debit cards are by far the most popular form of payment, many practices do not keep these cards on file for easy payment.

Debt 90 days past due? Hire Recovery Agents !

Hiring a debt collection agency is one of the best things you can do to minimize your losses due to ballooning accounts receivables. Unpaid bills can cause serious cash flow issues for the healthcare industry since they are unable to reduce their operating expenses as quickly as other industries. We can help you if you want to hire a good collection agency.

Conclusion 

In addition to delivering the best patient care possible and striving to provide the best patient outcomes you can, healthcare businesses still need to keep a close eye on their bottom line. The healthcare revenue cycle is unlike any other and, as such, needs to be constantly monitored and tweaked to make sure it is running efficiently for your business. By collecting and analyzing data and improving processes in your organization’s back-end and front-end, you should be able to create a noticeable improvement in managing your revenue cycle. The most important reason to do this is that the less you and your business have to worry about revenue, the more you can focus on providing the best care possible.

Collecting a debt can be a complicated process. Whether someone owes you money under a contract or you’ve obtained a court money judgment against someone, several tested tactics can get you paid. When it comes to collections, success requires an organized, well-managed, and thorough process. There are no secret tricks or little-known tips, although some ingenuity in obtaining information is helpful. Ultimately, collection success follows diligence and focus.

Here are ten of the most effective collections tactics and how to apply each to increase your collections cash flow:

1. Use all the information you already have on your debtor

If the debt is from a contract or a loan, you probably have an application or some other preliminary documentation on your debtor. Loan applications ask for extensive contact and employment information, and while some of that information is part of an approval process, it’s also used for collections. Start with the debtor’s address and employment information listed on the application or other documentation.

2. Search online and on social media

Chances are, your debtor has some digital footprint, and online information can be a source of contact information and other insight into the debtor’s affairs. Check social media accounts for the debtor, and then look for employment clues, or details on where the individual lives, works, and who they associate with.

3. Check those credit references

If you asked for credit references as part of a loan or rental application, this is the time to reach out to the listed people. In general, you can only ask these references for information about the debtor’s location and cannot discuss the debt details. Contacting references serves two purposes: it alerts the debtor (since the reference may contact them) and can be the source of new information on the debtor.

4. Contact, contact, contact

Once you have basic contact information from your documentation, online sources, or references, begin a scheduled and persistent process of contacting the debtor. Begin with a phone call and a letter. Use certified mail with the first mailing attempt, as this can confirm a debtor’s address and can be evidence that you alerted the debtor of the amount owed. Be persistent and firm, but tell the debtor you want to work with them to resolve the matter.

5. Uncover banking information

If you are collecting on a money judgment, you may be able to enforce the judgment using bank account garnishments, but the key to this tactic is knowing where your debtor keeps their money. You may have this information already from any payments the debtor may have previously made. Also, if you paid the debtor via a check, see which bank processed the payment. Go back and check social accounts, too. Your debtor may follow the social media feed of their financial institution.

6. Find out if the debtor owns a vehicle

Many state motor vehicle departments allow third parties to request information on vehicles registered to an individual. Like bank accounts, a car or other vehicle can potentially provide a source for payment.

7. Ask the debtor, and others, to provide information

If you have a judgment, you can invoke your standing as a judgment creditor to compel disclosure of information on the debtor. An information subpoena is a simple list of questions such as:

• Where do you bank?
• Do you have any cash on hand?
• Where do you work?

An information subpoena can also be sent to third parties, such as banks and certain individuals, to find answers to the same questions.

8. Offer a payment plan

It’s possible — likely, even — that a debtor hasn’t paid you because they cannot. Offering a payment plan may be a tactic to get some cash flowing and create a more friendly relationship that can result in more payments. A payment plan can also take the form of a Confession of Judgment, which can speed up the process of converting the collection account to a judgment if necessary.

9. Be open to settlement

When it comes to collecting a debt, getting some amount is preferable to getting nothing. Use the information that you have collected to assess whether or not the debtor has assets or means to pay the debt. Extend a discounted offer to accept a smaller sum in full, and reduce the amount of your losses.

10. Document Everything

Keep records of all communications and agreements made with the debtor. This includes phone calls, emails, and written correspondence.

11. Hire professionals

Professional debt collectors know how to orchestrate all that’s required for a successful collection. They often take a percentage of what they collect, so there’s little or no out-of-pocket expense. They know all these tactics and more and can help manage the process and guide you to more money. Debt collectors recover money from unpaid invoices all day long. That’s their job, their debt recovery tactics cannot be matched by regular folks. As a last resort, reporting the debt to credit bureaus can sometimes incentivize payment, as it affects the debtor’s credit rating. Make sure that you are compliant with laws and regulations when doing this.

You’re not alone. 69% of all small business owners are kept up at night with worries about cash flow. One of the leading concerns when it comes to cash flow is accounts receivable (money owed to business owners from customers, borrowers, etc.).

Are you tired of chasing clients for payments? A debt collection agency can recover unpaid bills of small amounts by using their collection demands service. Recovery of bills may require a combination of collection demands, calls, and filing a legal suit. Need a Collection Agency that serves Small Amounts too? Contact Us

Suppose your business has a steadily growing receivables account. In that case, the average US small business’ receivables are over $53,000 – it can be difficult to focus on much else, especially when you require that money to continue managing your business.

You may feel locked between wanting not to be harsh on your owing customer while still wishing desperately that they’d pay. Here are some debt collection tips for small businesses that we believe are the most effective in improving cash flow:

Remain Open-Minded and Understanding When Communicating With Debtors.

The first important thing you should do when dealing with your owing account holders is to remain calm and together regardless of how worked up they may get over the situation. These people are still customers, which means relationships should remain important. If your customers get angry they can go home, however, as a direct reflection of your business, any negative situation can be detrimental to the image of your business. You’re also more likely to communicate effectively without taking offensive and defensive sides.

Take a Gradual Approach.

If the debt is relatively fresh, start communication with only a simple follow-up email and the benefit of the doubt that your customers are only a little behind and will make a payment soon. If a couple of weeks have passed without payment or response, you can give a more assertive nudge by making a phone call and/or sending a stationary letter. Ensure not to allow too much time to pass between communication attempts, as customers may believe that their debt has been “forgotten”.

Understand Your Rights and The Rights of Your Customers.

One of the first things you should do after deciding to exchange business on an account is to educate yourself on your rights as debtees as well as your customers’ rights as the debtors when the time comes to finally persuade customers to pay their overdue bills. The state of Maryland governs these rights under state and federal law. The last thing you want to do is cross a line that results in having government fines charged to your business, making cash flow even more scarce. Your accountant will know more about the receivable process and can help guide you on fees, contracts, and the types of accounts you should act on quicker than others.

Don’t Wait Too Long To Reach Out For Help.

The Statute of Limitations in Maryland that defines how long you have to take legal action on collections is three years. That’s three years from the last activity on the account. Your business can miss out on the right to take a debtor to court if time runs out before you, a collections agency or your lawyer are able to get in front of a judge. Although we believe that most people truly want to pay back their debts and are simply in a hard place, there are those who fall under the umbrella of never intending to make any effort to communicate or make payments. In situations such as these, a collection agency is more prepared to deal with hostile or MIA debtors and are more likely to make headway on payments.

Prevent The Chance of Delinquent Accounts by Running Credit Checks.

Your small business may be struggling to improve your cash flow due to overdue accounts now, but you can plan for a more predictable future by doing credit checks, especially over a certain amount. For $30 you can purchase a D&B report that will show you any other open or delinquent accounts as well as any liens or judgments against the individual. If you’re able to establish whether the customer is likely to pay their debts or not, it can save you quite a bit of time and resources down the road.

Do Not Hesitate to Hire a Professional Debt Collection Agency.

There are several myths about collection agencies. Hiring a collection agency is possibly the best thing you can do to get back the lost money and stop spending too much time on your employees who are neither trained for debt collection nor have any idea of laws about debt recovery.  Need a Collection Agency? Contact us

Accounts receivable and outstanding debt may not play a huge factor in your daily business routine. However, it would be best if you didn’t take a relaxed attitude to ensure your bills and invoices are sent promptly and paid as soon as possible.

To learn more about what you can do to lower your accounts receivable and boost your bottom line, contact us.

References:
https://www.forbes.com/sites/allbusiness/2019/04/21/cash-flow-challenges-facing-small-business-owners/
http://www.law-margulies.com
https://www.dnb.com/ca-en/

While customers may dread receiving calls for payments, businesses are equally wary of hiring a debt collection agency for variety of reasons, biggest being loss of reputation and clients. Collection Agencies focus on maintaining positive relationships between businesses and consumers.

The first section of the articles focuses on the myths that debtors have and the later half talks about the myths that creditors/businesses have about Collection Agencies.

Common misconceptions that Debtors have

If you have outstanding debts, you either already have experience dealing with debt collection agencies, or you will at some point. Debt collection can be a complex process. It combines law with aspects of finance, accounting and tackling with various debtor excuses to avoid payments. There is also be some degree of pressure involved since the debt collector’s job is to pursue many options to satisfy amounts owed.

We’ve identified and busted several myths about debt collection agencies.

Myth #1

Burying your head in the sand will make debts go away

This first myth is one of the biggest misconceptions in debt collection. Creditors and debt collectors do not simply move on to the next account if debtors ignore phone calls and letters. Ignoring debt is not a solution to a debt problem. In fact, a debtor may miss excellent opportunities to settle debt by refusing to face their unpaid bills. Once an account is with a debt collector, the music has just begun and they will continue to pursue recovering debt in one way or the other, in a legally complaint manner. If you cannot effort to pay in full in one go, negotiate for a payment plan.

Myth #2

People can become “judgment proof”

This myth is also common, but it is not the top misconception because there are some circumstances when it can be true that a person can become insolvent. Insolvency simply means that a person’s debts outweigh their assets. However, unless an individual legally declares bankruptcy and obtains a discharge of debt in bankruptcy, a debt collector may be able to wait until the individual begins accumulating assets again, and then collect. Some people believe that if they have no money in the bank, do not own property, and live paycheck to paycheck, then they are “judgment proof.” This is not the case, and a collector may find ways to collect on a debt.

Myth #3

Debt collectors are shady and use underhanded tactics

Collecting debts is a professional service governed by laws and regulations. While there are examples of debt collectors violating consumer protection laws, these incidents are often isolated incidents and not the norm. Debtors should know their rights and be on the alert for violations of debt collection laws, but should not use these protections as a reason to avoid working with a collector to resolve a debt. Debt collectors are required to work within various laws, the most prominent being the FDCPA.

Myth #4

Debt collectors are bullies

Similar to the fear that debt collectors are shady is the misconception that they are bullies that only have the goal of forcing a debtor to pay. Professional debt collectors are results-oriented and want to resolve a file, not ruin someone’s life or make a sport out of someone else’s misery. Most debt collectors work with you to resolve the debt in an amicable manner, rather than unnecessarily harass or threaten you.

Myth #5

Small debts don’t matter

Some debtors believe that their debts are too small. Maybe they owe a medical practice $100 for an unpaid copay and think it unlikely that the medical practice will seek to recover the bill. Businesses that often have small individual accounts receivable amounts do not always write those debts off of their books. The trend for many companies is to leverage technology and automation to pursue these amounts. The bottom line — debtors can never tell if a creditor is going to write off debt or not. How much the collection amount has to be assigned is entirely up to the creditor, and there is no minimum amount for commencing the collection process.

Myth #6:

Paying a debt collector doesn’t impact credit score

Many debtors believe that once their accounts have gone into collection, their credit is shot and there simply is no hope. This misconception often fuels ignoring collector calls and deciding to not pay even small amounts that the debtor can afford. However, collection status does not stop credit reporting in every case, and credit standing can continue to degrade. Working with the collector to make payment arrangements can be the start of repairing one’s credit.

Myth #7

Debt collectors are relentless; all they want is money

This myth also causes debtors to avoid communicating with debt collectors. The truth is, while in many cases the desired goal of a debt collector is to get payment from a debtor, often they just want to resolve the case. Sometimes that means entering into a repayment plan or other programs to satisfy debt. The goals of debtors and collectors can, and frequently do, align.

Myth #8

Debtors should avoid debt collectors and should pay the creditor directly

In many cases, once a debt has been placed with a debt collector, the original creditor no longer has an interest in the account. Banks, medical practices, and other businesses that can have accounts receivables sometimes sell or otherwise transfer their collection accounts to other companies. For this reason, debtors should deal directly with the debt collector. Large institutions, such as a commercial bank, might not immediately know that the debt has been transferred, so payment can end up in limbo.

Myth #9

Debt collectors will come to my home or at my workplace

99.99% of the time a debt collector never visits the home or workplace of the debtor. Only in the rarest of rarest conditions where a legal judgment has been passed to seize some of the debtor’s assets, something like this may happen.

Myth #10

Partial Payment will stop those collection calls

No, the calls resume soon after some of the promised installments are not made. It is the debtor’s responsibility to pay the debt in full unless a lower amount is agreed upon explicitly to settle the matter.

Common misconceptions that Creditors / Businesses have

Myth #1

Debt collection is too costly for my business

Most debt collection agencies operate on a contingency fee basis, meaning they only get paid when they collect. Some have different business models that may call for a flat fee for their service. Professional debt collection firms strive to provide measurable value to their customers and work to collect money so that the creditor lowers account receivables. Collecting some debts may not be financially feasible, but professional debt collection services are usually reasonably priced.

Myth #2

Businesses are better off taking a tax write-off than collecting

Charging off debt may be a good option for a creditor for accounting purposes, but it doesn’t return cash to the creditor’s business. Collecting can create cash flow where none existed before.

Myth #3

Collection Agencies will make me lose clients

Collection Agencies follow a very diplomatic approach, they know that debtors are not too happy once they get to know that their account has been forwarded to a collection agency. Seasoned debt collectors work with your debtors/clients in a very amicable yet firm manner. Their diplomatic approach ensures that clearing your debt becomes their number one priority. A debt collector has many strategies to help you close the account in an amicable fashion. They are trained well to ensure that your brand image is not tarnished. Well no one can guarantee, but an amicable collection agency attempts to preserve relationships.

Myth #4

Collection Agencies are cumbersome to work with

It is exactly the opposite, Collection Agencies are designed to take away your accounts receivable headaches. Most good collection agencies have a website, using which the accounts can be submitted. They can deposit money in your bank account or send a check once payment is collected. Collection agencies work as an extension to your accounting department and an experienced representative who will answer all your queries.