Your Debt Recovery Company Should Work For You

Considering the economy and the lack of flexibility businesses have when it comes to low cash flow, letting old debts go is not something most are willing to do. The solution? Bring a debt recovery company into the mix.

If you’re like most businesses, your decision to go with a debt recovery company instead of trying toCollections 14 track down your debt in-house was made with some apprehension. Turning over your late accounts to a third party can be nerve wracking, which is why you need to do your research to gain some piece of mind.

The industry standard for turning over late accounts was once to wait around four months from the last payment made. Since the recession, that time frame has been shorted to three months or less as businesses cannot afford to do without any of their payments due to them. However, you have to be the judge – If you’ve made several calls to your debtors and have gotten nowhere, maybe it’s time to get the professionals involved. Besides, the older a debt is allowed to become, the less likely you are to see your money again.

If you’re wondering how you’re supposed to find a reputable debt recovery company that will represent your interests the best, try looking for one that is a member of the Association of Credit and Collection Professionals. The Association only partners with the best in the industry and will not tolerate unethical behavior.

A reputable collection agency will sometimes act like part of the parent company, which means the client won’t even know they’re being contacted by a third party. Businesses have different thoughts on this practice – some businesses like this because they don’t want their clients to react negatively to being handed over to a collection agency. Others don’t want to be associated with any sort of collection efforts and believe they benefit by being at a distance from the practice, even though they initiated the move.  Be sure the debt recovery company you work with understands how you want them to work with your clients.

To make sure you get as many of your accounts to pay in a timely fashion, be sure your billing department is doing its job and promptly billing clients and following up on the next day after a due payment is not received. It takes a lot of work but can pay off handsomely. Unfortunately, even the most vigilant attempts don’t always pay off. At some point, you’ll have to decide whether you’ll want to bring in a professional. When you do make that decision, you can expect a faster turnaround on collecting debt.

The reason debt collection agencies do a better job than what you can is fairly obvious – they’re professionals, trained in how to communicate with debtors and how to work out payment arrangements. Furthermore, they are equipped with software and hardware you probably don’t have. The technology at their fingertips makes it easier for them to track down even the latest of debtors.

Omega-RMS, llc., is a debt recovery company you can count on to bring you back in touch with those accounts you feared were lost forever. Contact us today and ask about our record, our processes and how we’ve helped other clients like you.

Debt Recovery Solutions to Get You on Track

Debt 10Every business owner has to face it at some point – your late accounts aren’t going to come in willingly, which means you have to step up your in-house efforts or hand over the task to a professional.

For most business owners, the decision to hire a third party isn’t one that is made easily. While there might be some fear involved in the process, you should know that once you’ve found a suitable partner the outcome is a very positive one.

There are many reasons you should seek the assistance of a professional, not the least of which being that you need to spend your time making money instead of chasing down unpaid invoices. Once the decision is made, the real work begins – you have to wisely choose a debt recovery expert.

First, do your research by asking around. Who are your peers using for their debt recovery solution? Make sure you ask people who are in similar industries because many debt recovery experts stay in a narrow area. For instance, there are some organizations that only go after auto debt while others will only work in the housing industry. You want a company that will hit the ground running and not have to come up to speed and learn a new industry.

Once you’ve come up with a list of what you think are prime candidates, start asking for verification that they are legitimate. They should be licensed and insured. You should also check their record to make sure they aren’t the targets of lawsuits regarding their collection practices.

You want to hire the firm that can track down every debtor; even those who have move out of town or out of state and think they’ve bucked the system. If the agency uses a skip tracing, you’ve got a better chance at getting back every penny from every debtor.

Don’t get taken by a low price only to find out there are hidden fees to account for later. Every company will likely have a different price and different contingency cost. However, the best price isn’t always the best choice, so don’t let that be your only worry.

Some companies will charge a flat fee, which is just a pre-collection fee that is probably quite small. A contingency cost is a very typical occurrence in the debt recovery industry and involves varying percentages based on how difficult the debt is to collect. For instance, debts that are more than a year old are the most difficult to collect, which means the debt recovery company will keep more of what they collect than they would for a newer debt.

As a member of the Association of Credit and Collection Professionals, Omega-RMS, llc., passes the test for companies looking to get the best in the industry on their side. Omega’s solutions make sense because we know how to recover your money while staying in the good graces of your clients. Give us a call and find out how we can connect you with your long lost accounts.

Third Party Business Debt Collection to the Rescue

If you’re like most business owners, you have heard the stories about how a certain organizationAssets 1 hired a business debt collection agency to handle delinquent accounts and they lost a good portion of their customer base due to how poorly the debt collector treated the delinquent accounts. While the industry does have a few dark stories in its past, today’s debt collection industry is thriving with ethical firms ready to serve you and help retain your customer base.

Since the Fair Debt Collection Practices Act went into effect in the late 1970s debt collection agencies have put into effect quality debt practices that protect consumers. Reputable business debt collectors applaud the strict efforts on behalf of the federal and state governments that regulate the debt collection practices that keep consumers safe.

Now that we’ve addressed your fears about partnering with a collection professional, let’s look at some of the perks you’ll see once you’re hand-in-hand with a third party agency.

  • Your Staff Will Have More Time
    Too many businesses make valiant but failed efforts to collect debt by using staff members who aren’t trained in the ways of business debt collection. When you partner with a professional, your staff suddenly has more time to put efforts toward building up your business rather than getting mired in paperwork and under-delivering on their debt collection tasks.
  • Third Parties Don’t Get the Cold Shoulder as Often
    Consumers must face the facts when a third party debt collection agency contacts them, which motivates them to get current on their account(s). It’s not due to an intimidation factor – it’s mostly due to the fact that professional business debt collectors know how to communicate with debtors and are persistent enough to let the consumer know that the debt isn’t just going to go away on its own.
  • You Can Stop Worrying About Court Action
    Even though you think your staffers are really good at staying in line with the latest rules and regulations regarding collecting debt, they can’t keep up with all the changes. This puts your company in a bad spot because it leaves you vulnerable to court action by consumers who feel you’ve violated their consumer rights. Debt collection agencies are staffed with lawyers who know exactly how to communicate with debtors.
  • You Will See Increased Collection Amounts
    Again, you did your best with the staff you have at the office, but they are no match for the services a professional can offer. They have the hardware and the software, as well as the training to use it, to get the job done faster and with more efficiency than anyone on your staff ever could.

Omega-RMS, llc., is a debt collection company that has the professional staff willing and ready to help you collect on your unpaid accounts. Stop wasting your resources and partner with a business debt collection specialist that will offer you an excellent return on investment. If you’re serious about improving your cash flow situation, you’ll contact us today.

Tips on Collecting Overdue Payments

Collections 6When your clients’ cash flow is hurting you’ll see it in their history, from orders to payments. Perhaps your in-house billing and collections team has tried to reach them on the phone, left messages and never heard back? These are all signs that your client is having some issues that might need the help of a professional service.

Overdue payments don’t have to be the bane of your company. Look at these tips and get an idea of how you can control the cash flow problems for your clients and your company. Your best bet might be siding with a debt collection agency.

1. Once You Spot a Problem, Address it Immediately
You can’t wait to follow up with accounts that are late. Every month you don’t collect you’ll find it more and more difficult to get that account current. For instance, you’ll have around an 80 percent success rate on getting a client to pay if you can work with them within two months of a missed payment. The percentage drops below 25 percent when 12 months have passed without payment.

2. The Law is on Your Side
Don’t be afraid to take a client to small claims court if your invoice is below $5,000. You can’t risk letting these accounts slide. Ask any small business owner who has and they’ll tell you cash flow takes a hit when too many accounts are “forgiven.” It’s fairly inexpensive to go after these overdue payments in small claims court. However, if you are pursuing larger claims, you need to hire an attorney because the process is much more difficult and takes some professional coaching along the way.

3. Know When the Relationship is Damaged Beyond Repair
You know that your return customers are your bread and butter. It costs more to attract new ones; so you do everything you can to hang on to the ones you’ve already established a relationship with, even if they pay late on occasion. However, if you’ve made contact and they’ve promised a payment and nothing comes in, it’s time to reassess your relationship with the client. You should consider stopping any future shipments or services to them.

4. Bring in the Professionals
Companies that hire a professional third party to handle overdue payments have a far better track record in keeping cash flowing in the right direction. In fact, taking on the debt collection tasks in-house can actually cost you more business than you think you’re going to lose by bringing a professional on board. Too many organizations fear that there will be backlash attached to bringing on a debt collection agency. The opposite is true. When you partner with an ethical and professional group, you can actually enhance your brand image and keep formerly late-paying clients coming back for more business, but making payments on time.

If you’re in the market for a firm that knows how to do it right, consider one that is a member of the Association of Credit and Collection Professionals. Omega-RMS, llc., is one of those firms. Contact us today and find out why businesses from many industries keep coming to us for our services.

Recovery Services That Have Your Back and Your Reputation in Mind

Collections 14Deciding you need a recovery services professional is only the beginning of the battle against negative cash flow. Now it’s time to actually get out there and find someone that can represent you well, protect your clients and keep the cash flowing in the right direction at all times.

So, how do you know when you’re in a good relationship with your recovery services professional or a bad one? It’s not always obvious. In fact, many companies don’t know they’ve picked a bad company until they get a large number of complaints about the way the company is treating clients who have fallen behind on their payments. There are other clues to consider as well.

Do you get the feeling you’re just another number with your current agency? Do you feel like you’re getting run-of-the-mill services? This is often called the “cookie cutter” treatment. You should have a debt collection specialist on your side that values communication and provides you with customized services that fit the needs of your company and the preferences of your clients. Before you sign on with a collection specialist, ask them if they value transparency in their work; ask if they offer personalized services and ask them how they distinguish themselves from other companies.

As mentioned previously, you don’t want a company that practices collection techniques that garner complaints. If you are getting phone calls from clients who threaten to never do business with you becausee of the way your third party collection service has treated them, it’s time to move to another service.

You’ve likely got your eye on the bottom line; it’s one of the reasons you decided to partner with a recovery services professional. With that in mind, what is your return on investment with your current collection service? Consider that the average debt collection company can recover about 70-75 percent of debts that are less than 90 days old. Is yours underperforming? Every company is different, so the 70-75 percent on a 90-day debt can vary, which means you need to offer some flexibility and set some parameters. However, when you decide what’s reasonable and those targets aren’t being met, move on to a collection specialist that can give you the return on investment you deserve.

When you interview a collection specialist, ask them to explain to you how they stay compliant with the Fair Debt Collection Practices Act. They should have lawyers on staff that know how to train the agents that collect debt for you. They should be licensed and capable of doing business for you in every state in the union.

When you partner with Omega-RMS, llc., you get recovery services that offer you an excellent return on investment. You also get a firm that treats your clients with respect and keeps them coming back to you for more business. Contact us today and find out how our services will benefit your cash flow situation.

The FDCPA and What it Means for Debt Collection Agencies

The Fair Debt Collection Practices Act (FDCPA) has been in place to protect consumers since 1978. For too long, consumers were subjected to unfair, unethical and abusive tactics by some debt collection agencies. These agencies tarnished the public image of the entire industry and required an act of Congress to help contain.

Despite the provisions, restriction, rules and regulations the FDCPA places on the industry, those who operate above board applaud its assistance in weeding out the bad from the good.

The FDCPA does not cover debt that is applied to the collection of corporate debt or any debtFDCPA Law 1 owed related to business or agriculture. It does apply to personal, family or household debt incurred by consumers.

What is a debt collector? The FDCPA defines one as a person who “regularly collects, or attempts to collect, consumer debts for another person or institution or uses some name other than its own when collecting its own consumer debts.” So, if your company wants to hire a third party to collect debts on its behalf, you will be hiring a company that will be responsible for following every letter of the FDCPA.

What is a consumer? A consumer is a borrower, the barrower’s spouse, and the parent of a minor barrower, guardian, administrator or executor. A consumer can only be communicated with during the hours of 8a.m. to 9p.m. Courts and the consumer can grant permission to be contacted outside of these hours. If a debtor has hired an attorney, it is the attorney who should be contacted regarding any attempts at collecting unpaid debt. If the attorney does not respond to calls, the consumer can then be contacted.

A consumer can, under the FDCPA, request that a debt collector cease attempts at collecting debt. After such a request, the debt collector can only send notice that they will cease collection efforts.

Debt collectors cannot use harassing or abusive practices in their attempts to collect debt. For instance, a collector obviously can’t threaten violence or any harm to a person’s reputation or property. Collectors can’t use profanity or obscene language while addressing consumers. Furthermore, they can’t publish a list of debtors’ names that refuse to pay and they can’t make repeated calls or allow a telephone without an answering service to ring repeatedly.

Reputable debt collectors will not violate any of these provisions, nor will they falsely represent themselves or the debt owed to them, which is also part of the FDCPA.

The reason a debt collection agency adheres to the provision in the FDCPA are many, but include civil liabilities up to $500,000 or one percent of the debt collection company’s worth, whichever is less. Another reason debt collection agencies follow the rule of the law is because they want to keep a good public image and continue to attract clients.

Omega-RMS, llc., is a proponent of the FDCPA and strictly follows each of its rules. Omega employees are trained beyond what is required so that they can help improve the reputation of the industry and to represent clients with the best possible level of professionalism.

Customer Debt Leads to Cash Flow Concerns

Collections 16Every business owner will experience problems getting customers to pay up on their past due accounts at some point in their career. However, when too many pay too slowly or don’t pay at all, cash flow starts to become a real issue, which means business growth becomes virtually impossible.

In the worst situations, slow paying customers can make it difficult to pay the monthly bills, including the rent and utility bills. Some business owners even have trouble making payroll because of customer debt.

The first line of defense for keeping customer debt at a minimum is to make sure your clients understand the terms of their creidt. Make sure your clients know what their responsibilities are from the very beginning. Keeping your clients informed of various fees that can bump up their balance is also a good way to keep surprises from derailing trust and delaying payments.

Billing is another area where business owners have weaknesses that lead to cash flow issues. For instance, if you’re not sending out billing invoices promptly, you can expect late payments. Don’t let your invoice envelopes be mistaken for junk mail – one way around this is to have an “invoice notice” stamped on the front of each envelope used for billing. If you haven’t received payment within 10 days, send out another notice.

At some point, you have to decide when you’ll make a call to the late-paying accountholder. If multiple reminders produce no payments, having a person in the accounts receivable department put in a call with the accountholder is a good step to take. This step also reveals reasons as to why the client can’t make a full payment. The best course of action is to work out a payment plan that better suits the individual. Besides, some payment is better than no payment.

Going after late payers is a touchy subject for many business owners. Some face a decision of going to court with a client who doesn’t pay up. Others are ill equipped to make the appropriate communications with clients who pay late and wind up with a complaint against them for their debt collection practices. This is why the smarter choice is to go with a third party that knows the collection industry inside and out and can effectively collect on customer debt.

A professional debt collection company has more hardware and software as well as training to find accountholders who suddenly disappear. They also know how to communicate with them and can work out a payment plan that keeps you flush in cash and able to plan a more consistent strategy for business growth.

Omega-RMS, llc., has the business solutions you’re looking for when it comes to collecting on debt. As part of the Association of Credit and Collection Professionals, Omega has proven itself a valuable asset to businesses in several industries that rely on our strengths. Education, medical, consumer products and memberships are some of the industries in which we’ve had success.