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Category: Debt

A Useful Questionnaire That Will Help You Choose The Right Debt Collection Agency
To save your business from drowning and recover your valuable money, debt collection agencies play an important role. The proven and effective strategies adopted by the advocates at these companies help you get your debt either in stepwise debt recovery models or instalment. If you are hiring the debt collection agency for the first time, then this article will provide you a sample questionnaire to find out the best debt collection agency.

Ways to select the best collection agency

Debt collection agencies can be found in varying sizes and experience to help debtors recover their debts. To find the most effective, cost-efficient and reliable debt collection agency is a tricky task. Below questions would help in narrow down your search and find the best one.

Will you provide me assurance of debt collection?

There are several agencies in the market that only charge you their fees when they help you recover your debts. Sometimes these policies are a way to deceive people. These agencies are whether or not recover your debt will still charge you a hefty upfront fee. So instead of recovering the money you have to pay more money to them.

When you hire a debt collection agency always get things signed in writing. Like the guarantee of getting your money recovered and returned to you by way of a collected debt. If a company fails to give this assurance, then there is no point in dealing with them.

Are you capable of taking up disputed debts cases?

Trying to handle a disputed debt case on your own is not everyone’s cup of tea. It is a very complicated thing that not only puts a burden on you financially but also emotionally without assuring you the success of the case. Debt companies know this fact, and so some companies charge exorbitant fees for dealing with disputed debt cases.

Luckily there are a few debt collection agencies that manage disputes at no extra charge. So prior to signing any legal agreement with a debt collection agency, you need to verify the way your disputed debt will be handled. It is advisable to deal with only those agencies that are equipped proper systems to deal with all types of disputes without charging any amount for it.

Know about their methodology to recover the debt

Before you finalize a debt collection agency, you need to learn about their methodologies by asking them a very important question. Different debt collection agencies employ different techniques to settle a debt case. Identifying the technology and work methodology will give you knowledge about their work ethics, code of conduct and behavior, etc. A typical debt collection program involves several parts as mentioned below:
- Settlement of Debt
- Reduction of Debt
- Credit Counselling
- Management of Debt
- Foreclosure Relief
To recover a business from huge debts is a difficult task. Taking assistance of a debt collection agency helps debtors by providing them valuable tips to come out of the debt and ensure the smooth running of their business.
September 29, 2016
Essential Tips On How To Recover Your Debt Without Any Interruption

Recovering debt can be full of hassle, especially if the debtor is deliberately dodging you. Read the blog to know how you can recover your debts without any interruption.

It is needless to say that recovering debt from the debtor is a quite difficult job. But for a financial institution or any business that provide service in exchange for the money it is essential. So, when you are already suffering from financial losses due to the failure of payment of the invoices you need to give debt collection a really serious thought.

My experience in this field has taught me that when the debtor is failing to pay you back and you are trying to recover from them the first reaction you are going to get is their anger. Then if you fail to use some trick you are going to get into an ugly confrontation. But you can avoid all of it if you remain a bit patient and involved with the recovery agency in the collection.

Most of the time if your invoices come back without the payment there can be several reasons.

• The debtor is suddenly have been suffering from a financial crisis due to illness, accident or huge financial loss or family demise.

• If you are a service provider, the client may state that they are not satisfied with the service they got.

• The debtor might have left the city without any prior notice.

In the above-mentioned circumstances, it becomes difficult for you to get your money back. This happens especially when either the debtor has left the city without any prior notice or providing the new address. Hence it becomes quite difficult for anyone to track them down and make them pay you again. So, in such a situation you will surely need the help and proper advice of an experienced debt collection agency so that you can recover your loan as fast as possible.

Thus while hiring such an agency, always start with proper planning and make your next move efficiently to recover the debt. There are a few things that you need to keep in mind. For uninterrupted debt recovery here are a few tips for you. Take a look.

Contact Debtor with Gentle Reminder

A gentle reminder is the best way to take the first step for recovering a debt. If you are thinking of going directly and demand the money then it is less likely that you will get the money. Moreover, a chance of ugly confrontation will be there. So, the first step should be a gentle phone call or an email. It will give both of you some time.

Next Step, Direct Demand

Now, once you are done with gently reminding them without any fruitful result you need to take a direct approach. Directly tell them to refund the money immediately. There is no need to hostile and no need to pretend it is perfectly alright if they are not refunding.

Stronger Approach – let the Agency Work

After all these warnings and direct demand, you still don’t get the money you need to ask your agency to work in their own way. In such a situation it often happens that the debtor cuts all ways of contacting him. The debt collection agencies are experienced with dealing such situations.

When you are trusting an agency with this job make sure you know everything about them. Keep the following tips in mind.

• You need to do proper research while hiring the agency. In which field they are working, what clients they are handling all of these are important to determine whether you should hire them or not.

• Hire a licensed agency. Since it is the matter of a huge amount of money you need to make sure that the agency also doesn’t cheat you.

• Look for an agency that has insurance. It will protect you if the agency tries to forcefully recover the debt and the debtor decides to sue you and the agency.

• Compare the price while hiring. Before you zero on some agency get a clear idea of their costs and payment.

But sometimes recovering your debt can be extremely difficult, especially if the debtor is skipping it deliberately. So you need to be conscious and make yourself prepared enough to handle any kind of confrontation. However, hiring an experienced and good debt collection agency can help you to get your money back and invoices paid in time.

Thereby, you should always keep the above-mentioned tips in mind while hiring agencies for debt collection.

Article by
Peter Samuel is a renowned blogger on finances and legal matters. He has immense knowledge on recovering debt with the help of debt collection agency. Read his blog to know more about debt collection agencies.

August 16, 2016
Help Your Business Crawl out of Debt

Even if you pay attention to every little detail in your business, it will be possible that you go into debt. Nevertheless, it does not mean that you should panic, rather, it is a good chance to revise your business and make sure that it does not happen again. Keep in mind that simple solutions are often the best, meaning that with simple tricks you can help get your business get out of debt fast.

Revise Your Budget

First things first, if you do not know where your money is being squandered, it is imperative that you check your budget. Perhaps it is time to think about setting up differently in order to ensure that you do not go into the red once again. Moreover, look into whether or not you are spending too much or if you need to direct your focus on ensuring that you can make more money.

Cut Back on Business Costs

You should take a look at what you are spending your business’ money because it might be cheaper to cut back on some costs. However, before you try to do anything, be sure to inform your staff since they need to know what is going on, especially if you are really in the red. It is not advisable to cut back on expenses without a proper cause or reason because your workers might become enraged.. They deserve to know what is happening and how you can all work together to reduce the debt and get the business back on its feet as soon as possible.

Look for Investors

Although you cannot hope for anyone to come and pay back your debt, it is never a bad idea to attract new investors who might be able to help you out. Even then, try to avoid hiding the fact that you are not doing well financially because lying to your investors could end up badly. Nevertheless, if you have a good plan in mind, a bit of financial push can help you in the long run, and ensure that your business is back on track.

Time to Cash in Your Debts

Chances are that some of your customers are owing you money, which can turn ugly if they do not plan on paying any back. Forcing your clients to pay back what they owe might seem unorthodox and often it is best to hire a debt collection agency to deal with it. They will have enough expertise and precise knowledge to handle any situation and ensure that you see your money.

Time to Consolidate Some of Your Loans

There are no shortcuts to quickly resolve the financial problems of your business, and you cannot hope that they will work themselves out.. If you have a number of loans you have to pay back, it is not a bad idea to look into what consolidating them can bring to the table. After all, it will be easier to find a smaller interest rate which could help your business deal with debt faster and without going into bankruptcy.

Going into debt should not be considered as a failure for your business, rather, it will be a challenge you need to figure out how to overcome. Finding a solution will require careful planning and financial cutbacks, but be aware that it might cause some discomfort among your workers. Make sure that everyone in the company understands the risks of going into further debt and what needs to be done in order to crawl out of it as fast as possible. Sacrifices will need to be made, and unless everyone is willing to do so, your business might never recuperate.

August 6, 2016
Tried and Tested Debt Collection Strategies
More than 50% of all startups fail in first few years of doing business. Inability to collect debts is one of the major reasons that leads startups to bankruptcy, because for business to function well, companies require constant money flow.

Since debt collection is such a hard and an unpleasant experience I’ve listed some of the most effective strategies that can help entrepreneurs to recover their debts and make their business lucrative again.

Determining Payment Policy

Each contract made for the purpose of selling goods or services should contain payment policy that determines schedules, ways and amounts customers are obliged to pay to goods or services providers. Different payment policies might include measures that should motivate customers to pay their debts on time. These special measures might include:
- Late-payment fees– fees that are added to the debt amount when debtor doesn’t settle the debt in agreed time. Regular late-payment fee range from 1% to 3% of the whole debt.
- Advance payment– companies can ask their customers to pay up to 50% of their debt up front.
- Interest– interests are added to the debt amount after customers fail to pay their debt in agreed time. Debt interests are regulated by federal and state laws, which means that companies first need to consult the law before adding that article to the contract.
- Due dates– contract and each bill that’s being sent to customer needs to contain due dates, after which late-payment fees and interests are being added to the debt amount.
Staying in Contact

One of the main strategies to make customers paid their debt is by maintaining constant contact with them. Debtors should be contacted by several different ways:
- Reminder bills– these notes remind customers that their debt is past due date.
- Phone calls– this way customers should try to get a verbal agreement and a new due date, until the debt is going to be settled. When calling debtors, company officials should avoid phone harassment, they should also talk in civil tone, identify themselves, and state the reason for calling and their desire to keep positive relationship with the customer.
- Demand letters and e mails– these letters should have a more demanding tone (but shouldn’t sound threatening) and should present next steps company will do to collect the debt.
Negotiation

Secret of successful debt collection is in understanding debtor’s situation and that’s why negotiations with debtors are very useful. Here company officials can offer discounts and longer deadlines. Although most people think that this way the company is losing its money, it is much smarter to make these exemptions and never deal with debtor again, then to continue with debt collecting routine and settle in court, which also comes with its share of costs and lots of uncertainty.

During negotiations company officials also need to inspect the possibility that the debtor will declare bankruptcy, which can cause plenty of legal troubles and requires hiring a lawyer or debt collecting agency.

Hire Professional Debt Collectors

This is probably the most certain and the easiest way to collect debts. Sure agency will take its share of the money, but this will cost much less than a court settlement or some other similar arrangement. Sometimes choosing a debt recovery agency is not that easy. When doing that, company management needs to check these things:
- Whether the agency is licensed;
- Whether it is bonded and insured;
- How big are the fees and in which way do they charge them;
- Whether agency is offering debt portfolio screening;
All these determine the agenci’es profile, and for most debts, agencies charge fees after the settlement, which in some cases means that company can get their share of the money right away.

The only strategy we didn’t mention in previous paragraphs is the customer and business partner screening, which tells the company how responsible they are when it comes to debt payments. This can prevent many invoices turning into bad debt and it is especially important for B2B deals. If even with these precaution measures you end up with unpaid debts, the above mentioned strategies will make collection much more easier and less stressful.
January 19, 2016