Monthly Archives: May 2014

What Should You do With a Client Default?

Are you doing everything you can to keep your client default rate as low as possible? Regardless of how well you explain the terms of your credit program, there will always be a number of people who pay late, decide not to pay at all or have situations where they need some encouragement to stay out of default.

In the worst-case scenario, the client default situation devolves where they seemingly disappear. They don’t return phone calls; letters to them go unanswered; mail starts to come back undeliverable or a voice message declares that the number is no longer in order. What can you do to protect yourself?

Loyalty 1You don’t want to stop offering credit to individuals because we know that it helps develop customer loyalty, more business and more profits. You also don’t want to see your cash flow suffer due to late accounts and client default. One way to protect your business up front is to searching for prospective customer’s credit history to see how well they have kept up with payments in the past. Questionable prospects should be given a low-line of credit or none at all.

Once your prospect appears to be credit worthy, make sure they sign a document showing that they understand what is expected of them when they have outstanding accounts. Let them know before they even make their first purchase that if you don’t receive payment in your required number of days, you will take further measures to get the account current.
Keep in mind that debts that go beyond 90 days late are the ones that are the most difficult to recoup. Don’t be afraid to get a lawyer in on this as they can draw up the language that spells everything out and perhaps get you paid before others should the client fall miserably behind on their accounts and they have everyone coming at them at the same time for payment.

The obvious choice in finding the ultimate protection is to get a debt collection agency on your side. Your in-house attempts to collect debt can be a costly adventure and extremely time consuming. Instead of taking time away from growing your business, you should let professionals take over the debt collection process for you.

Some business owners get anxious when they are approached about partnering with a professional debt collection agency. They think the agency will use strong-armed tactics that scare away future business. However, this is an unlikely scenario because any collection agency that wants to stay in business will treat debtors like they should be treated – with respect and professionalism. Another thing to remember is that by distancing yourself from the collection procedure is actually a positive in the eyes of the consumer.

Omega-RMS, llc., is a professional debt collection agency that has the trained staff, state-of-the-art technology and experience to get your accounts back to where you want them to be – paid in full. Instead of writing off old debt and thinking it’s a lost cause, give Omega the chance at collecting all of your debt for you.

An Outsourced Collection Experience is Best Handled by Omega-RMS

Collections 15How your brand is perceived by the public is extremely important in not only keeping your current customers, but also in building on those existing consumers and bringing more into the mix. It’s easy to get caught up in a social media storm should something go awry, causing damage to
your brand. This is one possible reason so many companies shy away from partnering with a debt collection company – they’re afraid of the backlash of a negative collections experience.

What they are missing out on is a collection experience far greater than what the average business owner can provide with an in-house collections department and without all the backlash.

There are many rules and regulations regarding the way you can go after debt. To be in compliance, you have to stay abreast of each and every new rule that pops up each year in every state (your level of attention to all of these rules depends on which state your debtors reside in).

Your debt recovery collection experience must focus on compliance. The laws might seem restrictive, but they actually help you do a better job of maintaining a positive customer relationship while also staying out of trouble with government officials.

You’re going to have complaints even when you uphold every letter of the law, but the more you follow a professional code, the less likely you are to have numerous complaints filed against you. In order to ensure that none of your employees are being held accountable for compliance issues, it’s best to outsource your debt collection needs.

Your customers will have a positive debt collection experience if the people trying to collect are well trained. The best collection firms will spend a lot of resources on training, just to make sure your brand is represented well and you avoid any negative impact. The goal is to get your money back, not distance your customer base from you, which is why a well-trained employee in a debt
collection firm is better at going after debt than your employees.

Customer experience has become an extremely important part of the business strategy today. Everyone is focused on a more customer-centric experience. This extends to the debt collection part of the business. Nobody likes to be called about their debt, but the top-notch firms will provide a customer experience that actually enhances your relationship with your customer base, even those who are chronically late on their payments.

If you have been putting off outsourcing your debt collection needs, you should know that you’re putting off improved customer loyalty and satisfaction, improved collection rates and reduced exposure to compliance infractions. You’re also probably putting off having access to professionals who can spot risky accounts well before anyone in your collection department will spot them.

When you partner with quality firms like Omega-RMS, llc., you’re getting involved with a group of professionals that know about training, compliance, customer-centric service and representing your brand with integrity. As a member of the Association of Credit and Collection Professionals, we’ve proven ourselves as ethical and professional stewards of the debt collection industry.
Contact us today to learn about our services and how they can boost your brand as well as your cash flow.

Collection Agencies in Kansas City: How do You Choose?

It doesn’t matter how small or large a company is; when you extend credit to your consumers, you’re increasing the chances that you’ll boost your profits. However, you’re also putting yourself at risk for unpaid receivables. What can collection agencies in Kansas City do for you?

You don’t want to stop offering your customers credit because you know that it improvesEconomy 2 customer loyalty and creates a better environment for attracting more business and repeat business. However, you run the risk of having cash flow issues due to the number of late paying or non-paying customers that take advantage of the credit you extend to them. Perhaps you’ve grappled with the decision to hire a collection agency to help you recover these losses and you’ve finally decided to pull the trigger. How do you decide which of the collection agencies in Kansas City to hire?

You can significantly reduce the number of finalists on your list of collection agencies by weeding out the ones that work in industries other than yours. Only keep the agencies that specialize in your specific industry.

If you have concerns about how the agency will communicate with and handle your customers’ debts, write down a list of questions and concerns you have and carefully monitor how your finalists answer these questions. You want an agency that will be respectful, ethical and professional with your customer base.

Don’t pick an agency that isn’t licensed to practice in all 50 states. Collection agencies have a process called skip tracing, which is completed using a database that assists in tracking people who move without notifying companies like yours where they have open accounts. Without the license to practice in all 50 states, they can’t skip trace as effectively, which means there is less chance of them recovering old debt.

Mistakes can happen, regardless of how reputable the collection agency is, which is why you need to ask your finalists if they are insured. Should a debtor decide to sue, you’ll be protected, as will your collection agency.

Make sure your debt collection agency is clear on how you’ll be charged for their services. Ask about fees that might come up unexpectedly. You shouldn’t have to find out after you’ve signed up with them that they have setup fees to get you started.

A good way to research the background of the agency is to see if it has violated any part of the Fair Debt Collection Practice Act. The act was established to protect debtors from unfair collection practices, and all reputable agencies will follow the act’s every word. Thousands of complaints are filed every year. Make sure the finalists on your list aren’t getting more than their fair share of complaints.

Omega-RMS, llc., has a rich history of keeping in compliance with laws governing debt collection practices in every state. As a member of the Association of Credit and Collection Professionals, Omega employees continually prove to our clients that of all the collection agencies in Kansas City, we are among the most reputable and well respected.

Debt Collection Agencies Work to Improve Your Position

Collections 4Collection agencies are responsible for recouping billions of dollars every year to companies who were never compensated for their services. Organizations that once wrote off many, many dollars from past-due accounts suddenly get an infusion of cash due to the work of the collection agency with whom they partner.

The decision to bring a collection agency on board is not always an easy one. Perhaps you’ve struggled with this dilemma in the past? The worry is that your customer base will react negatively to the collection attempts, spread a bad word or two about your brand, thus destroying your public reputation. However, when you partner with a reputable collection agency, these fears are unfounded. So, what should you look for in a collection agency?

Some of the debt owed to you is partially to blame on your inaction. Debt collection agencies know that instant action is the best response, and because they’re experts in this field, they’ll know when to act on an account that shows all the signs of being a potential problem. You can’t wait 90 days before you start the recovery process and reputable agencies know this.

A good collection agency not only knows when to act but also how to act. The agency that protects your brands as well as your profits is one that knows the laws of every state and abides by them completely. Some agencies are licensed to practice in all states, which means any debt you have tied to a resident of that state can’t be pursued, so try only to partner with one that can be of service to you wherever your clients might reside.

Many companies try to work their debt recovery from an in-house department. While these attempts are noble in their effort to cut costs, it’s actually something that can cost them more money in the long run. In-house collection offices aren’t equipped with the hardware and software that you’ll find in a professional collection office. The employees aren’t trained as well either, which could land you in court should your employee make misguided attempts at collecting debt.

The Fair Debt Collection Practices Act was not passed to make your life difficult, it was passed to protect the consumer. Reputable debt collection agencies embrace this Act because it weeds out the agencies that use unfair, illegal and unethical methods to get debtors to pay. In some cases, the people paying don’t even owe anything. A reputable agency will not only act fairly and ethically, it will do what it can to improve the public perception of the debt collection industry. In doing so, it will represent your company with its best foot forward.

Omega-RMS, llc., is a debt collection agency that trains its employees above and beyond what is required. We also have the latest hardware and software that allows us to track debtors down better than any in-house system you might have tried. To find out how our solutions match your needs, contact us today.

Client Services From Debt Collectors Can Boost Your Bottom Line

Debt 10The great thing about financing is that it not only gives consumers an option to fund their purchases, it also works to improve the bottom line of businesses that utilize consumer financing. However, there is a down side to financing and it all has to do with delinquent accounts.

When too many accounts are delinquent, cash flow becomes an issue; money being spent to offer products and services begins to run out as the company waits for the people to get current on their accounts. When this happens, your company not only has a problem buying the raw materials to produce goods, but also has trouble making payroll and keeping up with the usual monthly bills.

The obvious course of action to take is to bring in a third party with debt management client services to get the cash flow situation under control. However, too many companies fail to come to this conclusion to bring in an expert that can offer the client services required. The reasons are numerous but probably the most popular is over the fear that bringing in a debt collector will put the company in a negative light. This fear and many others are largely unfounded.

The Fair Debt Collection Protections Act regulates the collections industry and quickly weeds out those who are performing their services illegally or unethically. When a reputable collection company is on your side, you can expect nothing but the best customer services experience for your clients. Not only will they be treated fairly and repay what is owed, they will not be left with a bad taste in their mouth due to the way they were treated and be motivated to leave negative feedback for others to see.

The time to act is now. The older a debt gets, the more difficult it is to collect. Maybe you think your in-house attempts will suffice, but they actually don’t hold a candle to what a professional with several client services is able to achieve. They’ve got better hardware, software and training that help them to track down old debts and collect on it.

The debt collection industry as a whole brings back billions of dollars to companies across the U.S. Most of them work on a contingency basis, which means they don’t get paid until you get paid. You might get less money on the older debt that’s recovered, simply because the oldest debts take a lot of work to get back, but you will start seeing money come in from accounts you normally would have written off as a loss.

When you decide to partner with a debt collections professional, do your due diligence in researching the background of the company. Call other business owners that have experience with collectors you’re interested in and ask for their opinion.

Look for agencies that are part of the ACA International Association of Credit and Collection Professionals. When you see a member of that organization, you can rest assured that you’re partnering with one of the best. Omega-RMS, llc., is a member of the ACA and has a long list of client services that will be at your disposal. Contact us today and see how we can help you collect on delinquent accounts.

Keeping Current Accounts Can Help Your Practice Thrive

It is not uncommon today to see dental practices struggling to pay the bills. Default rates for practice loans are as high as five percent. Looking at two decades worth of history regarding dental practices, a dentist named Michael Warm came up with a number of reasons why practices fail. Here are a few that perhaps you’ll be familiar with in your own practice.

Two of the most common reasons for failure are also the most obvious – a lack of cash flow and working capital. You probably thought you had plenty of working capital when you got your loan to start your business. The logic is that the loan gets your practice set up with all the equipment you need and your growing list of clientele provides you with all the cash flow you’ll need to grow your business from there. Unfortunately, too many dental practices get into a situation where they’re spending more than they bring in, and there are a few reasons for this, one being the number of patients who don’t keep current accounts.Profit 1

Often, the best use of start-up capital is not only to outfit the office, but also to market the services the practice can offer clients. Aggressive marketing is a priority, or at least it should be.

Using capital funds for marketing is definitely a wise use of the money. What is unwise and can lead to trouble later is using capital funds as an emergency account. However, if they are ever dipped into for any reason other than business growth, it’s important to replenish them as soon as possible.

When you present your patients with a recommended plan for better dental health, they weigh the cost against what they can afford and whether they think they can do without the recommended treatment. While most businesses will say they have an 80 percent acceptance rate, according to Dr. Warm, that’s misleading. They might see eight out of 10 patients agree to the recommendation, but the two who don’t are the ones presented with the most costly procedures. A low acceptance rate, by quantity, is another reason practices fail. Taking an accurate measure of your acceptance rate is the right step to take in finding room for improvement. Most dentists find that expressing the true value of the expensive procedure is the weak link for them.

It takes an investment on your part to bring in new clients. Dentists who fail to see this will surely witness a decline in business. We’re back to talking about marketing again. You spent money on marketing when you started your business. Unfortunately, it’s an expense that shouldn’t go away. Keep in mind that for every dollar you spend on marketing, three should come back to you.

Regardless of how much you work on improving your bottom line, you’ll have patients who refuse to keep current accounts. When partnering with a third party debt collection company to manage your accounts, you’re better positioned to collect every dollar that’s owed to you. This is where Omega-RMS, llc., excels. Call us today and find out how our solutions can help you improve your cash flow by collection on payments that your practice depends on.