September 6th, 2010
I have been in the collections/accounts receivable industry for the past 10 years . I’m interested in starting my own collection agency, can you give me any resources or tips?
If you haven’t picked up a copy of “Starting a Collection Agency, how to make money collecting money” that would be my first step. I would also check out these resources for starting an agency:
http://www.credit-and-collections.com/pages/startup_resources.php
http://ezinearticles.com/?Starting-A-Collection-Agency,-What-You-Need-To-Know&id=802786
http://www.startingabiz.com/starting-a-collection-agency/
Join networking groups and connect with others doing this who can answer questions and offer advice, some of them are:
http://finance.groups.yahoo.com/group/creditandcollections/
and
http://www.CollectionTechnology.net
Be careful of scams and misinformation, many people think now is the best time to start an agency and there are many scams out there.
Tags: debt collection, starting a collection agency
Posted in Ask Michelle, FAQ's, Starting a Collection Agency | No Comments »
August 25th, 2010
In a blog post called Rich get Richer…Poor get Poorer, Jerry Ashton shares an excerpt from Germany’s respected Der Spiegel magazine that just published an article called “The Erosion of America’s Middle Class – On the Way Down.”
Not only is the clean up being left to bill collectors, it is being left to bill collectors as the FTC reviews and decides which parts of the FDCPA to change, and as a bill collector you still have to work with a law that was written in the 70’s that has no provisions for new technology.
It is almost as though bill collectors have a bigger job while others try to help the folks who owe the money – just get out of paying any of it, or try to sue a collector for a violation that may or may not have happened, all while following laws that don’t reflect the times and therefore hinder the efforts of the collectors.
It is a tough time for collectors, many folks who want to pay truly can’t, they are living in their car if they still have a car as an example. Many people are in survival mode, no hope in sight for them or any ordinary citizen.
In my opinion, collectors need to be making changes themselves within their offices and with their employees to effectively and realistically collect money all while following an outdated law. This can be done, though most collectors resist. Some things collectors can do to help the situation on both sides (debtor & collector):
1. LISTEN to a debtor’s story – not everyone is lying – try to work with them
2. Offer payment arrangements – this may be more work but it helps the debtor be able to realistically pay back the debt and helps the collector have some money rather than no money coming in.
3. Use social media as a verification and location tool – keeping on top of debtors job changes, address changes and credit fluxuations in this economy is crucial in your collection efforts.
4. Use common sense – even though the FDCPA doesn’t cover new technology, it is common sense, for example – don’t post messages on someone’s Facebook page about a past due debt, or don’t submit a friend request to a debtor
5. Be ethical – what if that debtor was your mother or brother? Have some compassion, put yourself in the debtors shoes, how would you feel? How can you help them?
6. Offer the debtor a solution or two to help them re-pay the debt without pushing them over the edge.
Tags: collector, debtor, Fair Debt Collection Practices Act, Recession
Posted in Compliance, Credit Crisis, Debt Collection in the News, Economic Crisis, Fair Debt Collection Practices Act, Getting Paid - Michelle Dunn - Business Finance Columni, Helping Debtors, Honesty & Integrity, Recession | 2 Comments »
August 17th, 2010
I had the pleasure of being asked to speak at the Entrepreneurial Exchange North put on by Micro Credit of New Hampshire yesterday at Fosters in Plymouth. Alex Ray gave a great keynote speech and I then taught a morning and then an afternoon class on limiting your credit risk. Charlene Anderson spoke about how small businesses can market themselves and there was a great lunch and networking roundtable in the afternoon.
My morning presentation was a lively group with questions starting almost right away and alot of interaction. After lunch there was a bit of a food coma and my group was a bit more subdued. I changed up my presentation about half way through to ask the participants what types of businesses they had, how they dealt with customers who were late or didn’t pay and offered them specific advice and things that they could do specifically to help their business to limit credit risk starting this morning.
I met so many great people who are excited about their business, very refreshing and exciting to see when the economy is in a slump. I hope to keep in tough with many of them to see how they do and hope to see you at the next presentation!
Tags: credit, Credit Reporting, credit risk, entrepreneur
Posted in Business Credit, Education, Expo's & Trade Shows | No Comments »
July 28th, 2010
Many people who are thinking of starting a collection agency approach the bank for a small business loan. right now with the new financial reform bill being put into action and the economy still struggling less small business owners are being approved for loans.
Some may not be established enough or may not have comprehensive business and marketing plans. Creditors and banks are paying more attention to their credit risk due to the economy, so a small business owner needs to prove to them how they have cut that risk and give concrete examples to back it up.
To increase your chances of getting approved for a loan, provide a credit policy or credit plan along with your business and marketing plans when you approach a lender. Providing these documents increases your chances of obtaining a loan dramatically.
As a business owner there are some things you want to be aware of with the passing of the new financial reform bill.
One is that if you applied for and were rejected for a loan or you were denied a lease, you can get a free copy of your credit score from the three credit bureaus. Your credit score is the number on your credit report that strongly indicates how likely you are to pay back a loan, mortgage or any debt based on your borrowing and payment history. The higher your score the more likely lenders think you will pay them back.
Tags: bank, business, creditor, loan, start up
Posted in Business Credit, Economic Crisis, Recession | 1 Comment »
July 26th, 2010
офис столовеI have had the honor of being asked by Atlantic Publishing Company to write the foreword of a book that I contributed to for them called “How to Own and Operate a Financially Successful Collection Agency”.
I just finished writing up some talking points to send off to “The Business Advantage Radio Show – Get Your Edge” and will be taping four 11 minute segments next Friday for upcoming shows.
I also followed up with another company that has asked me to participate in a Business Experts Panel on the topic of small business financial management – I will be on the show on august 9th at 9am EST.
I am now working on information for three (Yes! 3!) seminars I have been asked to teach about using social media in collections. I am sending The RossDale Group, Lorman and Avante Resources my power point presentation, handouts and bullet points for my presentations.
These opportunities came about because of my ongoing marketing – it comes in ebbs and flows but as you can see, it is worth it!
Tags: credit, credit management, debt, finance, Marketing, publicity, small business
Posted in FAQ's | No Comments »
July 19th, 2010
As more and more customers become past due or try to delay payments 35% of the financial professionals surveyed by the Arketi Group, say they have started adding late fees. This could be a good way to have those customers who may just be a little slow to be able to step it up and pay your bill before another bill that doesn’t charge late fees.
Make sure if you decide to add any late fees that your customers are notified about any late fees BEFORE additional sales. You can do this by adding this change to your terms and conditions on any contracts, agreements or credit applications. You can notify your customers about how much the late fee will be by adding the information to your invoices, statements, websites and any other materials you routinely send to your customers. You may want to send a letter with your next batch of statements and to existing customers letting them know that moving forward there will be late fees and how much they will be.
Tags: late fees, past due
Posted in Business Credit, Credit Policy Questions | 5 Comments »
July 17th, 2010
My Top 3 tips to make sure you are prepared as the Credit Crisis comes to an end:
- Look into e-invoicing or emailing your invoices and statements to customers that are open to receiving them this way. An alternative is to offer a secure portion of your website where a customer can log in and download any invoices and statements and make a payment online.
- Start calling late paying customers more often. Calling customers is the most effective way to collect more money.
- Start putting past due customer on credit “hold” – when someone is past due hold their order until they are current and maybe re-evaluate their credit limit, or how you want to be paid moving forward.
Doing one or all of these things can help your business stay in business as the economic crisis comes to an end. You can continue with these practices moving forward and it will help you to protect your businesses biggest asset, it’s cash flow. “Almost two-thirds of the A/R professionals we polled told us that 2009 was worse than or about the same as 2008 financially,” said IARP CEO Tom Bohn. In view of this now is the time to focus on your credit department and make sure it is strong moving forward. Once you streamline your collection efforts, you will be in a much better position as we go through 2010 and into 2011.
Tags: collect, Credit Crisis, invoices, money, payments, Recession
Posted in Being a Great Collector, Credit Crisis, Economic Crisis, Getting Paid - Michelle Dunn - Business Finance Columni, Recession | No Comments »
July 16th, 2010
I am excited to share that I was interviewed by CNN Money this week and they have written a story on their website called “Confessions of former debt collectors -These people share their experiences in the collections industry — and why they left.”
They have profiled 10 former bill collectors – check it out and let me know your thoughts!
Tags: CNN, collections industry, confessions, debt collectors, money
Posted in About Michelle Dunn, Being a Great Collector, Dealing with debt collectors, Debt Collection in the News, Heard on the Street..., Recession, The Life of a Bill Collector, Working at a Collection Agency | No Comments »
July 15th, 2010
During these tough times credit managers everywhere are having a harder time than ever screening potential customers, setting credit limits and effectively getting paid. Most businesses ignore or neglect the credit and collections function until it is to late or someone owes them money and they need that money in order to stay afloat.
Almost every business owner I speak with tells me that they really need to spend some time on upgrading or streamlining their credit department. In this economy that has become an even bigger reality. What are you doing to improve collections during these tough economic times and what will you do when they are over to protect your business from bad debt?
According to a survey recently done by the Arketi Group 41% of finance professionals have had to increase their collections efforts with 55% calling their late-paying customers more often than in past years and 29% putting past due customers on “hold” for new orders if they are past due. This leads me to believe that as a credit manager some of the things you should be focusing on to improve your credit department would be making more calls earlier, and making sure not to process any orders for a customer that is past due or a slow paying customer.
With more and more business being done online it might also make sense for credit departments to streamline their billing and invoicing practices by using email or a secure website where customers can download their invoices and pay online. In the same survey by the Arketi Group, 42% of the finance professionals they surveyed, which included business owners, CEO’s, CFO’s, accounts receivable directors and managers, report that they have received more requests from their customers to be invoiced electronically – a positive sign since 82% of those credit departments who have received these requests believe that submitting e-invoices expedites the collection process. I think you can take this a step further by providing an online option for payment so the customer can click to view their invoice, and click to pay it.
Tags: credit, Credit Crisis, invoice
Posted in Being a Great Collector, Credit Crisis, Debt Collection in the News, Economic Crisis, Getting Paid - Michelle Dunn - Business Finance Columni, Online Collection Techniques, Online payment options, Recession | No Comments »
July 6th, 2010
Mark your calendars! Entrepreneurial Exchange North, the premier training and networking conference for New Hampshire’s smallest businesses, takes place Monday, August 16 from 8:30 a.m. to 4 p.m. at the Common Man Inn and Spa in Plymouth.
The popular event includes a keynote address by Alex Ray of the Common Man Family of Restaurants, workshops built specifically for microentrepreneurs, and lots of opportunities to network with fellow attendees from around the state.
Workshops will include Turning Challenging Times Around, facilitated by Charlene Anderson from Kamigo Marketing and Improving your Bottom Line through Collections, with award-winning author Michelle Dunn.
Tags: bottom line, collections, credit, michelle dunn, MicroCredit, plymouth
Posted in About Michelle Dunn, Ask Michelle, Business Credit, Expo's & Trade Shows, Networking | No Comments »
