As a business owner you are always thinking of ways to cut costs and increase profit.
One of the easiest ways to do this is to improve your cash flow, get it coming in quicker and in full. How are you accomplishing this? Leave your response in the comments below.
Look at your financials often. Not once a month, not once a week, often.
Offer an early payment discount with short terms (4% net 10)
Communicate with your customers, thank them, follow up on orders, make sure they are happy.
Posted in Being a Great Collector, Business Credit, Collections for Creditors, Credit Policy Questions, Customer Service, FAQ's, Getting Paid - Michelle Dunn - Business Finance Columni, Know your Debtors, Training
Tagged bad debt, cash flow, Collection Calls, credit, customer service, customer training, debt, get paid, improve cash flow
As part of your skip tracing, when you have to locate a debtor in order to collect from them, how many of you contact neighbors for location information?
How often do you do this?
As you continue to test yourself on the FDCPA, what do you send a debtor as validation of a debt?
How much time do you have to provide validation and how often do you have to provide this validation?
Posted in Being a Great Collector, Books, Collection Calls, Collection Letters, Compliance, Fair Debt Collection Practices Act, FAQ's, Laws, Scripts, Telephone Collection Tactics
Tagged bad debt, collection agency, debt, debtor, don't owe, harassment, prove I owe, validation notice
As you make collection calls to debtors, how do you determine how often to call so that it is not considered harassment under the FDCPA?
When a debtor hangs up on you do you call right back or how long do you wait to call again?
Posted in Being a Great Collector, Books, collection agencies, Compliance, Education, Fair Debt Collection Practices Act, FAQ's, Laws, Scripts, Telephone Collection Tactics, The Life of a Bill Collector, Training
Tagged Collection Calls, Excuses, fair debt collection, Fair Debt Collection Practices Act, FDCPA harassment, harassment
How well do you know the Fair Debt Collection Practices Act?
This series of blog posts will be questions to help you test yourself and your collectors on how well you know the FDCPA.
Please leave your comments and answers in the comment section. Today’s question:
Can a bill collector call a debtors spouse at work regarding a debt?
Posted in Being a Great Collector, Collection Calls, Compliance, Education, Fair Debt Collection Practices Act, FAQ's, Laws, Telephone Collection Tactics, The Life of a Bill Collector, Training
Tagged bill collector, debt, debtors, Fair Debt Collection Practices Act, FDCPA questions, FDCPA test
Anyone who owns a collection agency knows you use many resources to skip trace debtors. I wanted to share a list of some skip tracing websites recommended by the Skip Tracing Advisor, Ron Brown.
AT&T Directory Assistance
Yahoo! People Search
Posted in Ask Michelle, Being a Great Collector, collection agencies, FAQ's, Know your Debtors, New Technology, Online Collection Techniques, Skip Tracing, The Life of a Bill Collector, Training
Tagged anywho, AT&T, collection agency, directory assistance, manhunt, people search, resources, reverse search, ron brown, skip trace, skip tracing, skip tracing advisor, skip tracing websites, superpages, switchboard, white pages, yahoo
Some business owners
tell me that they don’t outsource their collections
to a third party bill collector
because of the liability of using a collection agency
. Which lead me to this blog title, is using a collection agency a liability
It is my opinion that using a third party debt collector
under any new laws
and regulations would be much less of a liability
for a business owner now more than any years in the past.
If a business owner feels this way they can mitigate the risk of using a debt collection agency by doing their due diligence. They should “check the credit” of a potential agency just like they check the credit of a new customer before extending credit. Ask questions such as:
- How long have you been in business?
- Get the names of some clients and call them for references.
- Get the names of past clients and ask why they left.
- Ask if they are members of any organizations such as the BBB, Chamber of Commerce, or any industry trade groups.
- Do they specialize in a certain type of debt? What kind? Student loans, utilities, bank loans, credit card etc.
- Have they ever been sued for a FDCPA violation? Why? What was the outcome.
Posted in Business Credit, Choosing a Collection Agency, collection agencies, Collection Tools, Collections for Creditors, Collections for Landlords, Dealing with debt collectors, FAQ's
Tagged business owners, CFPB, collection agency, debt collection laws, Fair Debt Collection Practices Act, liability, outsource their collections, third party bill collector
Having plans for your collection agency is crucial, business plans, marketing plans, financial plans and strategic planning will help you will all of this.
Your strategic plan could be part of your marketing or business plan. Having a strategic plan can give you direction and keep you focused while improving your long term profitability. To start your own strategic plan for your collection agency you need to know what your strengths are as well as your weaknesses. You want to be able to identify opportunities and any threats to your business model.
If you have a mission statement this is part of your plan, it gives you a clear goal and tells you how it will be achieved. An example:
“The mission of YOUR COLLECTION AGENCY is to collect the maximum amount from debtors for all clients while complying with all federal and state laws.”
Posted in Ask Michelle, collection agencies, FAQ's, Marketing, Starting a Collection Agency
Tagged collection agency, credit, debt, debt collection, marketing plans, mission statement, starting a collection agency, strategic planning