Tim works with another good friend of mine Krista Walsh who I have also known for many years. Krista is someone near and dear to my heart, she was a member of my credit and collections discussion group from the beginning and is the first and only woman owned collection agency in Canada!  I am so proud of her.  Krista is a driven, successful collector and trainer and you can only benefit from her training.

The PACE program with these two dynamic speakers (and others!) will help you educate and build confidence so that collectors can effectively collect receivables while caring for the customer in a manner that protects your clients interest.  In the economy we are struggling with, every agency and collector out there can only benefit from the PACE program.  Don’t even wait a minute – check out the program and give Tim a call – Make sure to tell him you heard about the program from Michelle Dunn!

1.      Have they collected your type of debt before – a specialized agency would be your best option, if there isn’t one for your industry, get one that has experience in collecting on your type of debt before.

2.      Talk to their customers and read testimonials on their website– how long have they been using the agency, how do they like the service, anything you don’t like about them?  Ask any online discussion groups if they have any experience with them – for example on LinkedIn I have a groupThe Guide to Getting Paid and these are the types of questions people ask.

3.      Check them out on Better Business Bureau websites, do they belong to any trade associations, or a local chamber?  Have they had any complaints against them for law violations?  How often, when was the last one, was it resolved?

4.      What do they charge – what’s included in that fee, how will they get paid and how will they pay you – sign a contract!

5.      Do they list all their contact information and pricing on their website, do they have a physical address, does a live person answer the phone?

6.      Are they licensed and bonded, do they have errors and omissions insurance?

Failing to have a collection agency hired and ready to collect on past due accounts before it is needed is the biggest mistake business owners make in collections.  Make sure the agency you choose represents how you would like your customers to be treated and always remember that the agency you use is a reflection of you and your business.

2.       Change your payment terms.  If your terms are net 60 or net 45 change them to net 30 or net 15.

3.       Offer a discount, an early pay discount is attractive to your customer if they can save some money by paying early and you get your cash quicker.

4.       Be proactive by calling customers with large balances 10 days before the invoice is due to make sure they received the invoice, they have the correct address to send the check and the bill is scheduled to be paid.

5.       When offering payment plans remember you want as much as you can get as frequently as you can get it.

6.       Personal visits. Once you do this you will always do it. This works for local customers.  If a business owes you money, start buying your morning coffee where the owner of that company busy his and say good morning. If a restaurant owes you money, go there for lunch, if it is a printing company, call for a quote or get something printed or copied.  You don’t even have to mention the debt, they know they owe you the money, seeing you reminds them that they owe you money.

7.       Get 50% down and 50% at the end of the job. Make sure you get a signed contract outlining this.

8.       Start sending friendly reminders to customers that become 5 days overdue, do this every month.

9.       Sell old, outdated inventory for cash only, have a sidewalk sale or offer items to customers that call in orders at a discount if they pay within 10 or 15 days.

10.   Thank your customers.  Show some kind of appreciation and let your customers know, offer free shipping for a limited time or have an open house with hot dogs, drinks and games for the kids.  A little appreciation goes a long way, especially in a bad economy.

My friend Vito Mazza works with Transworld Systems offering a program called Green Flag Accelerator and what this program does is consistently (which is VERY IMPORTANT!) reminds your customers that are past due to pay their bill.  It is your credit management department – just not in house.  All calls and debts are collected under your company name, but you don’t have to pay a new employee, train them, give them benefits, or pay for vacation time.    When I owned M.A.D. Collection Agency I offered this service and there was a huge demand for it.  In this current economy it seems to me that there would be even more of a demand for this type of service.  It can’t hurt to learn more.

Today and tomorrow I am offering my kindle book FREE, Dealing with Aggressive Debt Collectors, what to do and how to do it.  Help someone out by telling them about this offer today.

Kindle books can be downloaded onto any free kindle app, so you don’t need a kindle to read it.  You can also pick up a the paperback to give someone who needs help dealing with their debt.

I wrote this book based on my experience as a debtor and a collector. I am hoping that by being on both sides of the fence my story can help you deal with collectors who break the law, can help you learn how to get out of debt and give you the tools and resources you need to deal with collectors, clear up your debt and move on with your life.

This book will be offered in Kindle format absolutely free on Tuesday, April 17 and Wednesday, April 18 2012. Kindle books can be read in any free Kindle app if you don’t have a Kindle.If you are in debt, or know someone in debt, get a copy of this book while it is free.      

by an industry insider

1.  Your rights.  As a debtor it is up to you to make yourself familiar with your rights under the law.  It isn’t anyone else’s responsibility to make sure that you are informed about your debt, the terms, and the collection of your debt or the laws regarding any of those things.

2.  You can make payments.  It is better if you can pay off your debt once it is placed with an agency and the sooner the better but if you can’t, you can make payments.

3.  Collection agencies do not have the authority to offer you a settlement amount.  Collection agencies work for the creditor, the original person you owe the money to.  Only the creditor can authorize a settlement once they place an account with an agency or accept a payment in full for a lesser amount.

4.  If a debt has passed the statute of limitations.  Hopefully you know what you owe, who you owe it to and how much you owe.  If you owe an old debt, it doesn’t go away until you pay it, so if you suddenly get a call about an old debt you know you didn’t pay, it may be outside the statute of limitations BUT that does not mean a collection agency can’t try to collect it.

5.  Collection agencies are a service business that helps businesses across America.  They are a vital part of this economy keeping the cash flowing in this country.  Most of the bad press you read about and see on television is about debt buyers, not collection agencies – totally different services.

6.  Their client can sue you if you don’t pay. This can result in a judgment, garnishment and attachment of any assets you have, including bank accounts, pay checks, property, homes, boats or cars.

7.  If you send a collection agency a cease and desist letter they can only accelerate your account to more aggressive action.  Once they receive that letter from you they cannot contact you and so are forced to take some type of legal action to get paid. This is worse for you in the long run.

8.  When you send a letter to a collection agency telling them to stop calling you, they will stop calling you but your debt does not go away. You still owe the money and the creditor and the agency are being forced to collect in another manner other than contacting you.  If they can’t call you to get payment, they may have no other option than to pursue legal action on the debt.  Don’t force someone to pursue you legally!