Monthly Archives: August 2013

Collection Experience: It Doesn’t Have to be Negative

Taking on a collection agency doesn’t have to be a worst-case scenario situation. Overcoming Happy 1the myths that run rampant with the collection agency industry is something that holds many companies back from getting great value on an excellent service.

The collection experience today is different than it was decades ago when a few companies practiced hard tactics that tarnished an entire industry. The collection experience that agencies offer today is one that keeps clients in good standing with their customers.

Collection agencies use a variety of techniques based on respect and understanding to bring value to those who partner with them. For instance, when a customer becomes delinquent, collection professionals will attempt to call them and talk about why they are late. The goal here is to get the delinquent account to make a payment, so there must be a sense of urgency on the part of the collector. When a sense of immediacy is put into the call, the delinquent account is more apt to schedule a payment for sooner rather than later.

Delinquent accounts always come with an excuse, some more valid than others. The best response is understanding, but also questions. Each rebuttal will be in the form of a question. Arguing is not the standard, but simple questions are. The customer might say they never got the invoice. The collector makes it a practice to ask for the address and make sure that the agency indeed has the correct address to send the invoice to the client.

While excuses should be followed up with questions, it’s important to always listen first. Caring goes a long way in customer satisfaction surveys. If you take the time to listen to the reasons for the payment being late, a possible solution can be found. Listening doesn’t mean the collector becomes part of the customer’s family and takes his/her side. The relationship stays professional and the collector stays on task and maintains a serious and urgent but understanding tone.

Taking a personal touch is only a natural response when the customer begins pouring his/her heart out about why they can’t make payments, but at no time should the personal touch on the part of the collector be mistaken for something that can be taken advantage of. Persistence is the key, because if any extra time to make a payment is given, the customer will likely take the collector up on it and the account remains unsettled.

Professionals like those at Omega RMS, llc., know how to address all types of customers, from the ones that need just a little nudging to stay on top of their payments to the delinquent accounts that are months past due. Not only does Omega have the technology to find the old debtors, they are equipped with professionals that know how to address every situation and produce results.

Looking For Collection Agencies in Kansas City: Move Past the Myths to Find the Best Fit

Collections 5We’ve all heard the myths regarding collection agencies, none of which are more pervasive than the one that says collection agencies use tactics to strong-arm money out of debtors. It’s simply not true.

In the late 1970s, Congress enacted the Fair Debt Collection and Practices Act (FDCPA), which was built to protect consumers’ privacy and to place penalties against collectors who didn’t practice ethical policy in regaining money for clients.

Despite 30-plus years of the industry working to ensure that customers are respected, some myths are still out there, and agencies in Kansas City are working against those myths. Will collection agencies scare away your customers? No. The harsh techniques are a thing of the past and there no longer exists the negative image in the industry.

Businesses that seek out collection agencies in Kansas City can further protect themselves by getting references before making a final decision on the agency. A good agency will not only treat your customers with respect, they’ll keep them coming back for more business.

Another myth is that each agency makes up its own rules about how it can operate. This is also false. States have their own regulations that businesses operating there must follow. On top of that, all agencies are held to the FDCPA, so any agency getting creative on its rules is simply not going to last and won’t pass a reference test.

Some businesses won’t take on collection agencies in Kansas City because they believe the rates are too high and any money recouped will simply go to the agency and the contracting company will only get pennies. The truth is that the older the debt, the more work it takes to get the money back. It’s not uncommon for agencies to charge 30 percent, but that’s hardly the 90 percent that some believe the agencies take off the top.

The clients you’ve made repeated attempts to contact and can simply not get an answer are doing a great job of dodging your attempts. There is a tendency to believe that these are the only clients that collection agents are able to get money from. However, collection agencies are good at spotting trouble before it becomes a three-plus month delinquency. They work with all types of scenarios, from potential problems to long-term problems.

The old adage is that you get what you pay for. There is some truth to this, but there is more difference between collection agencies than just the cost of doing business with them. Many agencies specialize in industries and do a bulk of their business with one or two types. And while all agencies must follow similar rules, not all of them are working with the latest technology that can give them a leg up in tracking down old debt.

Omega RMS, llc., has 40 years of experience in collecting debt, ethically. The company also has four decades of accounts receivable experience. The staff at Omega works with the latest technology and has the training to represent you and produce excellent returns on a consistent basis.

Client Services: Maximize Your Assets

Assets 1Offering credit to clients is an excellent way to create business, but it also comes with risks. Slow-paying customers create a negative cash flow situation and non-paying customers can really put a damper on growth. Many companies have debt collection protocols in order, some of which include handing over the responsibility to a third-party organization.

Old debt is difficult to collect on and most companies don’t have the resources to get that money back. Clients that move often can be difficult to track down unless you’ve got the technology and expertise to pull it off. Choosing a third party for client services that include professional debt collection is a smart way to maximize revenue.

In most cases, it’s a win/win situation because the third party doesn’t get paid until they get your money from those who owe you. This is extra incentive for them to work extra hard to track down those debtors and work out an arrangement for payment.

But reputable providers follow the Fair Debt Collection and Practices Act (FDCPA), which offers a laundry list of compliance rules and regulations that must be followed. Plus, third party agencies that follow these guidelines are more apt to practice courteous collection practices, which means your clients will not have a tarnished image of your brand and are more likely to promote your product/services rather than talk negatively about it.

Another perception of hiring a third party to collect debt is that it protects your company’s image by not being the “bad cop.” Some debtors simply do not like being contacted about their debt and will not react positively to any action taken, even if it is courteous and professional. In this scenario, it’s the third party provider that takes the hit, not your company.

Some companies have a rule about when they pay their bills, and it doesn’t always follow the due date in your ledger. It is a fairly unethical way of doing business, but some companies simply won’t pay for what they’ve received until a debt collection company reaches out to them, which helps their cash flow but doesn’t do any favors for those they do business with.

A third party collection service is necessary in these situations and it shows that you’re willing to work with grain instead of against it and shows client services are a priority for you.

Keeping good credit can assist a company in their growth plans. Some of these companies are also extending credit to as many as possible, which means their receivables can grow very fast. But having too many receivables floating around out there can reflect poorly on a credit score. But hiring a dedicated service to get those receivables paid as quickly as possible is the solution.

Omega RMS, llc., is a company dedicated to offering early intercept recovery services, accounts receivables management and contingent collection services.  With more than four decades of experience behind them Omega has the know-how to bring flexible solutions to companies large and small.

Business Benefits of Third Party Collection Solutions

Collections 3When entering into the business world, many small business owners underestimate the value of having a third party collection company on their side. Naturally, it’s a logical assumption that when you provide a product or service to a client, you’ll get paid for said product or service. But this isn’t always the case and some clients need more incentive to pay for what they’ve essentially bought.

Small business owners are fiscally minded, so many of them will try to handle collections on overdue accounts in-house. What they generally don’t realize is that this process is a time-consuming and expensive one, especially without the proper equipment or training to pull off finding delinquent clients and getting them to pay.

Collection solutions start with employees that are trained properly and are familiar with the various federal, state and local compliance rules and regulations. These employees are well trained and know how to communicate with debtors. Third-party collection companies are 100 percent focused on collecting on overdue accounts. They have the software and hardware and applications that assist them in tracking down debtors that have moved.

Collection solutions handled by third party agencies are delivered with great tact. Staff members are highly trained to avoid confrontation and always put the value of your brand first. In-house collection solutions often involve individuals that have little to no experience in collecting on old debt and they can often tarnish the brand they represent through improper handling of the situation.

It’s important that your customer base, even the ones that need a little prompting to get current on their payments, are happy with what you offer and the way your company interacts with them. It’s best to leave the sticky situations up to the professionals rather than the in-house employee who likely has little experience in addressing clients with a poor payment record.

In many cases, first-party or in-house collection departments will hold on to a bad debt for no longer than three months. After three months, the debt is passed on to professionals, as they are better suited to collect on these accounts that first-party departments find practically impossible to collect on after three months of delinquency.

Most third party establishments will collect on debt for a percentage of what they’ve been able to capture. Some agencies will buy the debt outright for a lesser amount than what was originally owed to the originating company and keep 100 percent of what they are able to garner from the client.

Due to unscrupulous practices in the past, Congress enacted the Fair Debt Collections and Practices Act in the late 1970s to protect consumers who were being abused through unethical business practices. Reputable companies today will follow these guidelines through and through.

Omega RMS, llc., is a company that has four decades of experience in collection solutions. The employees at Omega are trained according to industry regulations and beyond. Using state-of-the-art equipment, Omega has more tools in place to deliver the kind of quality services that collects on old debt yet retains customer loyalty.

The Benefits of Accounts Receivable Management for Your Company

Economy 4Many small business owners have goals that will one day put them in the category of a medium-sized business or larger. But expanding the enterprise requires cash flow and that isn’t always readily available.

One way to grow is to take the traditional bank-financing route, but as most small business owners know, that route isn’t always available to them. Business owners have also found out the hard way that financing can be an expensive option due to the interest rates attached to it, which can sink a small business fast.

But there are other methods to grow. One of the reasons a small businesses stays small is that they haven’t capitalized on accounts receivable management options that can produce advantages in the way of more positive cash flow.

Accounts receivable financing relies solely on what your company sells but isn’t immediately paid for. Some accounts take months to pay off while others refuse to accept responsibility for payment. By using accounts receivable financing, you’re getting paid immediately for what you provide your customers and you’re also handing over bad debt for the professionals to recover – all for a small fee.

When you contract with an accounts receivable firm, you’re selling your receipts to them for a fee and getting instant cash that you can use to grow your business. You no longer have to dedicate staff hours to accounts receivable paperwork, which means your employees are now open to commit their day selling your product instead of trying to collect payment on it.

If your business relies on inventory or raw goods to produce what you’re selling, you must have cash flow to purchase that inventory, which means you have to collect on what you’ve sold to produce more product. When you aren’t paid for months at a time, your ability to grow is hindered by a lack of cash. Accounts receivable financing, or factoring, alleviates that issue. It also takes the risk out of your routine and pushes it off to the financing company.

Some accounts receivable management companies also provide excellent debt collection services, also known as collection solutions. These companies have excellent hardware and software and the knowledge to track down clients who have let their bills go unpaid for too long. They offer the professionalism that not only gets your money to you, but also upholds the integrity of your brand. Today, smart business owners are turning to the professionals to collect on unpaid debt, and it’s giving big returns.

Omega RMS, a company that specializes in collection solutions, loan servicing and receivables purchasing, offers the accounts receivable solution that can help your company grow. You need an experienced team on your side, and Omega RMS has four decades of experience in accounts receivable solutions behind it.

Are you looking for fresh solutions to expand your small business? Despite the number of years Omega has been around, its associates are full of power strategies to get you to where you want to be.