Category Archives: Debt Recovery

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.

Debt Recovery Company Improves Cash Flow

Every business owner has to deal with it at some point – late paying clients and non-payingCollections 9 clients can really put the hurt on your cash flow situation. Many business owners balk at taking on a debt recovery company to give them a helping hand, but their fears are unfounded.

Most companies with an in-house debt recovery solution are actually at more risk than those who outsource their collection efforts. A debt recovery company must adhere to strict rules and regulations that protect consumers and ultimately the businesses that go after bad debt. Unfortunately, most in-house efforts don’t have the resources you’ll find at a professional collection organization, which almost always includes attorneys who are constantly learning about new laws regarding the debt recovery industry.

You know by now that cash flow controls your rate of business growth. In fact, when you have too many clients getting too far behind on their accounts, you might even have a difficult time coming up with payroll and monthly bills like rent and utilities. At this point, you’re just scraping by and business growth isn’t an option.

Maybe you made the mistake of allowing large credit lines to help you increase revenue, but those accounts are consistently late. This becomes problematic really fast when too much of your revenue is tied up in too few accounts that seem to be on their own payment schedule.

Some businesses will combat this with incentives that give clients a break when they pay early. If a good amount of your business is tied to B2B accounts, you know that the average time to pay off a debt is more than 50 days. To give yourself a boost, consider offering incentives and see how much faster these accounts go down to zero.

In many cases, a debt recovery company will offer accounts receivable services, which means you will have the option to sell off your receivables and not have to hassle with billing on these accounts. Not only do you get a break on the paperwork, you get a quick infusion of cash that allows you to invest in growth for once instead of phone calls to late accounts.

The advantage of going with a debt recovery company is that they have the hardware and software to make contact with delinquent accounts and work out a payment arrangement. Very few companies have the in-house staff with the equipment or training to pull this off. In fact, if you’ve got an account that’s 90 days late, there is a really good chance you’ll never see that money by going after it with an in-house strategy. However, with a team of collection professionals on your side, your chances improve tremendously.

Businesses that get over their fear about their public image being tarnished by taking on a collection expert to lend them a hand realize the return on investment very quickly. When Omega-RMS, llc., is brought to the table, you’ll actually see your public image improve. Contact us today and see how we can get you back into a positive cash flow situation.

Debt Recovery Strategies for Student Loans

The debt that students find themselves in because of taking out too many student loans hasCollections 3 gotten a close look for the last 10-plus years. However, public outcry really went up  when the student loan debt surpassed credit card debt last year.

Universities are being tasked to monitor their cost increases and some states have instituted tuition maximums that universities must abide by or risk losing part of their state appropriation. When you and your staff have done everything you can to address costs at your educational institution, you’re still going to have students leaving with debt that goes unpaid.

Let’s take a look at where most of the debt lies. Of the $1 trillion in student loan debt, $850 million is tied to federal student loans, like the Stafford, Perkins and PLUS loans. Around $150 million is tied to private student loans. A surprising amount of students are defaulting on these loans, but most debt collection attempts start with the private loans.

Collecting on federal students loans is a lot more difficult than collecting on private loans. It’s a very time consuming process that takes an expert touch to pull off correctly. The Department of Education doesn’t take on new debt recovery firms very often, but the ones that are working on federally defaulted loans have probably been on the task for quite some time.

Most private loans come with a different interest rate than federal loans. The default periods are also different, most of the time. If your institution is relying on private loans as well as federal loans, you need a debt recovery agency that can deal with those private loans that aren’t being paid.

Most reputable debt recovery agencies will have a system in place that allows them to automate the way they process each loan recovery attempt. The trying part about dealing with student loan debt is that the debt is one person’s name (the student) while the person paying it is many times someone completely different (usually the parent). Some of these parents are working on retiring soon and might have a tougher time paying back the loans they co-signed for years earlier.

The demographics are changing, too. For instance, the Millennials are the first set of students leaving higher education without landlines. They are a transient group that are tough to pin down. It takes the expert touch of a debt recovery agency to get your institution’s debt back to you.

Most Millennials are more likely to respond to electronic forms of communication. Debt recovery agencies with the right hardware, software and motivated staff are able to work around the intricacies offered by the newest generation of college graduates.

Omega-RMS, llc., can handle debts of all kinds in any state. The staff at Omega is qualified to handle debts owed by debtors in all 50 states and they have the ability to negotiate payment that will get your students out of default and back to a good status.

Debt Recovery Companies Are Not Created Equal

Debt 6There are many judges in the court of public opinion and they don’t always see the big picture. Thanks to social media, consumers are constantly being updated with “objective” views on various products or industries. The court of public opinion has been a tough space for the debt collection industry despite the valuable role that those companies play in helping the economy recover.

Debt recovery companies are highly regulated. It’s something that became necessary decades ago when a few companies took advantage of debtors and left them feeling like victims. Congress got involved and in 1996 established the Fair Debt Collection Practices Act. This Act was built to provide protection to consumers. It also helped create a level playing field for debt recovery companies that operate with professional conduct and ethical practices.

Despite the act of Congress, there remains an opinion among the public that collection agencies are unscrupulous companies that have no compassion for the financial hardships of debtors. Complaints against various debt recovery companies get published with only one side of the story getting any press. The data behind the complaints get no analysis and many assumptions are made.

Despite all the bad press, debt recovery companies are providing a vital service to the business sector by helping them regain lost profits in an ethical and above-the-board manner. The reason? Most business owners are wary of their public image being sullied by debt collection attempts, which means the debt recovery company they partner with has to be fair and kind to the debtor. Without a gentle touch, no company would ever risk their brand’s public image and lose the customer base just to recover old debt.

It’s true that not all debt recovery companies are created equal. While some might be operating with ethical treatment and follow every rule and regulation, others do it better. Courtesy, consideration and patience are tactics that work, not only to please the client and retain their position within the court of public opinion, but to work out a solution that gets the debtor back on a better financial track.

Some consumers are doing everything they can to resolve their debt, but they need guidance. Debt recovery companies are experts at working out a schedule that can fit the budget of the consumer while resolving their debt, which is likely hurting their credit health. Credible debt recovery companies will listen to what the consumer has to say and develop a plan that works for the debtor and the client.

Omega-RMS, llc., has the trained staff as well as the top-notch software and hardware that assist companies like yours in recovering debt you thought you’d have to write off. Omega has your best interests in mind, too. We aren’t going to strong-arm your customers into paying debt at the expense of your public image. Not only will we put you in a better financial position by recovering your debt, we’ll also make certain that your customer base remains loyal to your brand.

More Businesses Are Choosing Omega-RMS

Business Growth 1There are several key business practices that companies observe when deciding on which debt collection agency they will hire. Omega-RMS is exceeding those expectations after seeing growth of 30 percent in 2013.

A leader in strategic contact campaigns and third-party receivables, Omega-RMS embarked on a full year of developing new initiatives, bringing in new personnel and expanding into marketing. With more than four decades of experience in accounts receivables, Omega-RMS simply built upon its already stellar image.

Two key ingredients to the success of 2013 came in the form of new employees, including a new managing director, Ashley Bradley. Under her guidance, Omega-RMS opened a new office in Kansas   City and built up more quality staff to serve clients. With a new team in place, the focus zeroed-in on driving results, which included successful branding and sales initiatives.

Bradley came to Omega-RMS with experience as a senior business development consultant. She’s also served as an executive recruiter, which really helped in building a new team in Kansas City. This effort led to more clients signing on with Omega-RMS in 2013. Further growth due to this effort is expected through 2014.

Omega-RMS President and CEO Edward Vasques said the goal of the company is to position their clients for long-term success. To achieve this goal, Omega-RMS has established a new standard in the industry that is focused on seamless transactions and proactive approaches to enhancing clients’ profits while protecting their brand.

Vasques said at the end of 2013 that the company would continue to grow in the area of marketing while building deeper relationships with current clients. Furthermore, he said they would put efforts toward dominating the industry.

At the heart of Omega-RMS’s mission is providing accounts receivable management services, a mission that has a proven track record and 40-plus years of history as a foundation. When companies are having issues with their cash flow, Omega-RMS has stepped up to reverse the bleeding and provide opportunities for business growth. The backbone of the company is its employees – all of whom are trained to industry standards.

With access to the latest, state-of-the-art technology, Omega-RMS employees are attached to the hardware and software that, along with their intense training, allows them to succeed in collecting debt. Companies that have tried to collect on debt with in-house efforts are astonished by the return on investment they see once they’ve partnered with Omega-RMS. As more organizations find out about the quality of service and rate of return, Omega-RMS continues to see its topline revenue increase.

Omega has built a client list that ranges from the businesses in small towns on Main Street to the biggest organizations on Wall Street. The company has focused on serving businesses in the education sector, medical practices, consumer products and the membership industry. These businesses need to work on growing their client list and improving their profits, not toiling with debt recovery. The smart companies leave it the professionals at Omega-RMS.

Choosing a Debt Recovery Company: What Else do You Need to Look For?

The debt recovery company selection process is extremely important. Many times, organizations are afraid that bringing a debt recovery company on board will result in negatively affecting their clients. They think that the clients will have such a negative reaction that it will hurt the brand of the organization. This only happens when an organization doesn’t do their research and find a reputable debt recovery company.

Once you’ve gotten over the hurdle of committing to a debt recovery professional, and you’ve established that all your finalists are licensed to practice in every state and have memberships to exclusive associations that only allow the best agencies in; you need to determine the collection capabilities of the agencies.

Collections 13The agency must be capable of handling all of your accounts, which means they should have some experience in your industry. Some training will still be required, so determine if they have the ability to supply that training to their agents. Is the agency sufficiently staffed to handle all of your delinquent accounts? For instance, if you’ve got more than 1,000 accounts and the agency only has a handful of agents to work these accounts, is this sufficient to cover your debt recovery needs. The collection agency you choose should have the technology, training and staff available to handle your case load.

The technology the agency uses should also include the ability to give you customized reports as often as you need them. In most cases, the reports are accessible through a username and password and will show a compilation of data on each account, include its status and how much has been repaid. The goal of these reports is to provide total visibility into every account. If the agency can’t provide such visibility, move on to the next finalist.

How will the agency get paid? When evaluating each of the agencies, it’s important to know exactly how they are paid and how much. As a rule, most reputable debt recovery companies only get paid when you get paid. The amount often depends on how overdue the account has become, but it’s generally between 15 and 25 percent. Some agencies will give you a better deal if you give them more accounts.

If you place a large amount of work on the agency and have them practically doing your billing, some of these commissions will be as low as two percent. It’s in these situations that the debt recovery company is acting like a department of your own company, often billing with your masthead instead of their own.

An agency’s ability to communicate what they’re doing is very important to most organizations. If you’re looking for the ultimate in visibility and communication, choose Omega-RMS, llc.
With more than four decades of experience and membership in an exclusive debt recovery association, clients of Omega-RMS can attest to excellent representation that boosts brand value.

What You Need to Know in Choosing a Debt Recovery Company

Many new businesses try to cut costs by establishing their own in-house debt recoveryCollections 12 departments, but find out quickly that their efforts are in vain. Sometimes, those efforts lead to costly lawsuits that they could have avoided if they’d only partnered with a professional debt recovery agency from the beginning.

The decision leading up to partnering with a debt recovery agency often comes with some trepidation, but once all the obstacles are overcome, organizations need to do their research and find the best debt recovery firm for their industry.

A good place to start is by looking at the record of the agency. You need to know that they are legal, licensed and legitimate. Ask for a copy of their licenses, certificates and proof of insurance. Furthermore, inquire about their history of lawsuits or any fines they’ve been court-ordered to pay due to their collection practices.

One of the easiest ways to determine if you’re on the right track is to determine if the agency is a member of the Association of Credit and Collection Professionals or the Commercial Law League of America. No disreputable company is allowed into either of these groups.

Talk to other organizations in your industry and ask their opinion. When you’re building a list of potential debt recovery partners, bounce the names off of your colleagues and keep notes on the pros and cons on each. When you’ve narrowed down the list, talk to the clients of each of the agencies and get their take on the agency.

When it comes time to do business with an agency, be prepared to tell them about your current debt collection practices. Are you accustomed to waiting 90 days before you send an account to a third-party collection agency? A reputable firm will help you decide when it makes sense financially to turn over your delinquent accounts to them. Obviously, the more delinquent the debt, the less chance you have on recovering it.

Professional debt collectors have strategies that can determine which accounts need more attention which will prevent them from falling into delinquency. They also have the expertise to go after those long-lost accounts that appear to be going into a write-off situation.

Another aspect that needs to be considered is that some companies have very technical business processes, which is why you need to choose a debt recovery agency that has experience in your specific industry. Some debt collection accounts require the expertise of a professional who can look deeply into the issue and reasonably dispute any claims against the debt.

Meeting all the criteria above is Omega-RMS, llc. Omega is licensed and bonded to do business in every state, which means none of your debtors will be out of reach for collection efforts. As a member of the ACA, Omega-RMS meets all the criteria of a debt recovery company in good standing, capable of delivering quality solutions that leave your company satisfied and your clients feeling respected.