The 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.