Debt Collection Agencies have been assisting music stores and music learning centers to recover money from past-due accounts. Their recovery rate may vary, but a collection agency knows how to deal with those challenging debtors, explain the consequences of not paying, and take all permissible actions by following the federal and state debt collection laws.
Music stores in America are struggling with ever-increasing accounts receivable, and this trend is being seen nationwide. People rent musical instruments or buy accessories; however, few cannot pay their installments on time.
Parents of many kids enroll their kids in private music lessons like guitar, piano, or keyboard classes, but their wards drop out even though they are under the contractual agreement to make payments for the full term of the music course. In-house employees can send invoice reminders and make a few calls, but they are not trained to do anything beyond that.
The involvement of a collection agency makes a huge difference. No defaulter wants their account to be transferred to a collection agency because all those excuses, which were so far working with the music store, ain’t going to work anymore. Debt collectors are experts in talking around those excuses.
If you are a music store and looking for a good Collection Agency with extensive experience in recovering money from unpaid bills: Contact Us
A collection agency will not recover 100% of the accounts assigned, but let’s assume that an agency can recover from 40% of those past-due accounts. Then this is the money that the music store would have never been able to collect themself.
Collection Agencies can put debtors under the payment plan if they cannot pay bills in a lump sum. Equipped with lawyer-approved Collection Letters, Collection Calls and Legal Collections, they can collect from at least those who have resources to pay but have been avoiding. They are also able to trace missing people using the Skip Tracing service. Some debtors could have filed for bankruptcy, therefore their debts could have been legally wiped out. Collection Agencies run a Bankruptcy Scrub on all accounts assigned to avoid such cases. They can do collections in both Spanish and English.
Music stores, Rental and Repair shops have been hiring collection agencies for decades, and their role in protecting accounts from turning red is very important. Have a clear strategy for dealing with late payments, including when to charge late fees, when to send a payment to collections, and when to consider legal action.