Monthly Archives: July 2014

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.