Monthly Archives: December 2013

Third Party Loan Options and Debt Collection Work Together to Increase Probability For Your Veterinarian Clinic

Vet Check 1Just about every industry will see a spike in profits when they open up a new channel of revenue, like third party loan options. For many consumers, traditional credit options are not available to them, usually because of their credit history.

Many businesses, including veterinary clinics, have discovered new ways of growing their clientele and cutting back on giveaways through third party loan options. Vets are often confronted with issues in animals that have to be fixed immediately. These can be very expensive – too expensive for many clients to afford. Rather than try to collect, vets will write off their services, which impacts their bottom line. Vets that have partnered with a third party finance agency don’t have to work for free anymore. With flexible financing options, the client has no excuse not to take responsibility for the care vets provide.

Another issue that veterinary practices have witnessed since the last recession is a drop in the number of visits clients will make per year. More and more pet owners are running to the Internet for medical advice for their pets rather than come in to the clinic. People have less flexibility in their budget for anything and unfortunately, the health of their pets are one of the areas they are willing to cut. However, when the pet owner’s vet is linked with a third party finance company, they have a way to pay for their pet healthcare that doesn’t take such a big bite out of the budget.

Many pet owners don’t know about pet insurance or third party loan options unless their vet lets them know about them. If your veterinary practice has not explored the third party options, it’s worth a look. Vets have watched their business grow more consistent and the health of their animal clients improve through more regular visits and less Internet-diagnoses. Discounting services helps to build customer loyalty, but so does providing more options to pay.

While the new option for revenue increases profits, it also comes with a little risk. Not every client will honor their payment agreement, which means another branch of expertise is needed. Almost 80 percent of lawsuits against veterinarians have been a result of their in-house attempts to collect debt, which is why it’s important to leave that up to the professionals.

Omega RMS, llc., works with consumer product groups, medical practices, educational institutions and membership-driven companies to provide a wide variety of resources, including debt collection. Debt collection is not an easy process, which is why most companies fail with their in-house attempts. However, Omega is a member of the Association of Credit and Collection Professionals, a group that has strict membership requirements.

Omega has plenty of experience in helping consumers meet their financial obligations. Vets with financing options go to Omega when clients get behind on their payments. They leave the billing issues up to Omega so they can do what they do best and help their clients’ beloved pets heal.

Students Getting Behind on Payments With Increasing Student Loan Debt

The cost of public higher education, greatly affected by struggling state revenues, is growing – quickly. Public colleges in most states have watched state appropriations dwindle since before the recession. To keep academic programs rolling, campuses are raising tuition and fees at a staggering rate. Students are forced to take out more loans to cover their costs.

The class of 2011 graduated with an average student loan debt of $26,600. That pales in Student Loan 2comparison to 2012 graduates who owe $29,400, on average, according to the Project on Student Debt at the Institute for College Access and Success. So, what’s driving this debt besides higher costs? For one, parents can’t keep up. They’re only covering 27 percent of the costs, according to a study by Sallie Mae. In 2010, parents could pay for about 37 percent of the cost.

With the continued increase in student loan debt, defaults on student loans continue to rise as well. Many students chose a career path that can’t keep up with their debt. High debt is affecting their lives, keeping them from buying a house, getting married and starting a family. Many students coming out of college and looking to get into the workforce are having a difficult time. The salary often underwhelms those who do find jobs. As the job market continues to recover, it’s not fast enough, according to the student loan default rate.

The Department of Education said in October that the number of students defaulting on their student loan debt has increased for the last six years. Those who defaulted within two years of their first payment date were at 10 percent in 2011, up from 9.1 percent the previous year. The rate at which students default within three years of their first payment date rose from 13.4 percent to 14.7 percent in 2011.

Default occurs when a loan is 270 days past due. Arne Duncan, Secretary of Education, said the rise in the default rate is “troubling” and that his department would work with higher education institutions and borrowers to help them keep their debt reasonable.

The danger to colleges and trade schools is very real. If the school’s two-year default rates go higher than 25 percent for three years or more than 40 percent in one year, they can lose their ability to accept federal aid. It’s more important than ever for institutions to cover themselves and ensure that they educate students not only in liberal arts, but in their financial responsibilities.

Financial trouble hits students at tech schools and private schools too. Many times, these students have access to other forms of loans from third-party finance companies. Omega RMS, llc., works with these companies and educational institutions to ensure that the students who fall behind have options to catch up.

Omega has experience working in the education industry, giving their clients the power to focus on education and not on bill collecting. Omega has the expertise to work with students who struggle to keep up on their student debt.

How Does a Government Shutdown Affect Borrowing and Business Debt Collection

Graph 1According to the American Banker Index of Banking Activity, there was a negative impact felt between September and October in correlation with the government shutdown.

The index was down to 54.6 in October, a 1.2-point drop from September and the lowest it’s been since January. Commercial loan delinquencies tend to be the most susceptible to change with a spike in June, a dip in July, and climbing again through September.

The impact the 16-day shutdown had on small businesses was seen most readily in the delays it caused to processing loans. Bankers were a bit edgy about lawmakers’ reluctance to work out a solution to the ongoing debt ceiling issues and it made them reluctant to approve loans for small businesses.

Consumers were also reluctant to take on debt. Applications for consumer loans dropped in October, which was the first time that happened since 2012. The commercial side of the lending industry looked slow, but was still expanding.

Whenever the index reads above 50, it indicates more activity, or expansion. Whenever it goes below 50, that is evidence of contraction. Also, readings above 50 on indicators like loan delinquencies or loan rejection rates would indicate a drop in business activity. What bankers noticed during the shutdown was that the businesses that had the best credit ratings were the ones not applying for loans.

During the shutdown, lawmakers knew there would be thousands of government workers without a paycheck, which means they couldn’t stay on top of their bills. A Virginia lawmaker proposed in his legislation that debt collection activities should be limited while the government worker is temporarily without work.

Because the Consumer Financial Protection Bureau (CFPB) is funded through the Federal Reserve, it was one of the few agencies that remained open during the shutdown, which means business debt collection efforts were still being monitored. The CFPB continued to work with consumers to develop strategies to rid the industry of bad practices.

The CFPB has been handling complaints against the debt collection industry since July. From July until November, the CFPB accepted about 15,000 complaints per month and made public about 5,600 of them. The problem with the complaints that were made public is that they only included ones where a business debt collection agency recognized by the CFPB had responded to the complaint. This means the public reports didn’t include the anonymous scam artists or the companies that weren’t recognized by the CFPB.

Omega-RMS, llc., welcomes further scrutiny of debt collection agencies. As a leading provider of debt collection services, Omega has more than four decades of experience in providing legal, ethical and professional services that has earned the company a spot as a member of the Association of Credit and Collection Professionals.

How Can I Help my Business Experience Profitable Growth?

It won’t surprise you to know that one of the top concerns of most CEOs is profitable growth. Profitable growth occurs in businesses where the leaders focus on the organizational culture of the business, the people involved in the decision-making and whether or not the vision and strategies being proposed are completely understood and embraced. They also consider new Cash Flow 3ways of influencing more cash flow, which in some cases involves accounts receivable management processes through a third party.

The organizations that aren’t making the kind of growth they want are probably not working with the right people and/or don’t have the organizational structure in place to drive profits. They are probably lacking the connection to a third party that can provide professional debt collection services.

Businesses that have experienced profitable growth are often less focused on various management approaches that focus on growth. They’re more focused on business activities that lead to success, some of which are tied to how they handle receivables and debt management.

Most businesses rely on their employees to be their strongest asset, yet finding these talented individuals is often their biggest obstacle. Once the right staff is on board, they need to be free of cumbersome bureaucratic processes that stymie growth. A good many businesses are too slow to recognize these failed processes. In some cases, it’s the processes involving billing and accounts receivables that gives them headaches and slows their rates of profitable growth.

Most industries today offer credit to clients. Whether it’s in the medical, educational or retail industries – in order to see more business growth, companies are extending credit to their clients. It works. These companies are opening up new lines of revenue, but not without some risk. Most companies aren’t paid in full for an average of 50-plus days, which can really hamper cash flow and profitable growth of the business.

Business leaders know that growing their organization requires cash, and it’s not always flowing in a positive direction at critical times. One way around waiting 50-plus days for their money, some businesses have gone with factoring provided by a third party. By selling their receivables, they get their money immediately for a small fee. They don’t have to waste man-hours on billing and waiting for payment to come in a month later or three months later. Employees are no longer saddled with paperwork. They can instead work toward growing the business.

By selling receivables to a third party, businesses also relinquish any fear of having to deal with bad debt collection, which can be a massive undertaking for companies with employees who haven’t been properly trained in the practice of collecting debt. It’s a potentially touchy situation that can paint a negative image on the company brand if not handled correctly.

Omega-RMS, llc., is a company that has time and time again proven that they can faithfully recover debt while upholding the image of their clients. Omega’s accounts receivables management solution is at the heart of its mission. Early intercept recovery and contingent collection services are also solutions that Omega is poised to provide.

Recovery Services: Recognize When You Need Help

Business owners constantly ask themselves why their clients continue to neglect their invoices.Debt 4 The answer could be as simple as – because the clients believe they can do it without any recourse.

That’s often the case, as many business owners have no debt recovery services in place because they think going after debtors will create a negative environment. These non-payments add up and can cause serious cash flow issues for small businesses.

Consumer debt in the U.S. was more than $11 trillion earlier this year. A percentage of that debt will never be repaid. Debt collection agencies are able to collect around $55 billion a year. When businesses don’t recoup their losses from non-paying customers, they have to raise the price of their products/services. Using 2010 as an example, if the debt collection industry hadn’t recouped the $54.9 billion, it’s estimated that the average household would have paid $400 more for goods and services than they actually paid.

Businesses can protect themselves by standardizing their business practices. Businesses that draft contracts with their clients have less of a chance of customers not paying their bills. The contract spells out what’s expected of the client for services rendered. The client has piece of mind that the contract also spells out the responsibilities of the business. The contract also determines how payment will be made and when. Down payments are a good way to protect against total losses.

Recovery services are often needed when debts go beyond 60 days unpaid, but many businesses make the mistake of getting behind on their billing notices. Consumers need reminders, and businesses that have a prompt and efficient billing service have better rates of success in receiving payments on time.

What are your rights when it comes to collecting on unpaid debt? Many business owners don’t investigate this very thoroughly and either avoid debt collection all together or pay big fees to their attorneys. Companies that partner with a debt collection agency often have built-in legal resources within that agency. Most recovery services are multi-functional firms that include expert legal teams as well as professional debt recovery agents that know how to effectively communicate with debtors.

Joining a professional organization that fits your industry is also an action that produces results. Many professional organizations have a large group of fellow business owners who can offer advice on how to avoid the problems with non-paying customers.

Most of these club members will tell you that you should contact a debt collection agency before debt gets too old. The older the debt, the harder it is to collect. Many businesses have a policy of sending bad debt to collections somewhere between 60 and 90 days of nonpayment. Professional debt recovery services have the tools and knowledge to track down the debtor, make contact and establish a repayment option that will get them back on schedule.

Omega-RMS, llc., has many years of experience in professional and ethical debt collection practices that have proven very valuable to its clients. Specializing in education, medical, consumer products and membership organizations, Omega has a full range of options that suit almost any type of business.

Bad Debt Collection Agencies See Young Adult Debt Delinquency Increasing

Millennials are a skeptical and cautious generation. They aren’t huge advocates of credit Credit Cards 1cards or debt in general. While they have an average balance on cards lower than any other generation, they are increasingly not making payments on time, which often takes the interaction of bad debt collection agencies to bring resolution to the matter.

A recent analysis by Experian shows personal loan debt, which includes student loans, personal loans, credit card and car loans, averages around $28,000 per person. Most people have two credit cards with an average balance of $4,500. Millennials, however, have credit card debt of $2,700 and overall debt of $23,000. People in their 30s up to age 46, known as Generation X, have the highest average debt, which is around $30,000.

Despite their low debt loads, Millennials have lower credit scores. The average American has a credit score of 681 to Millennials’ 628.

One reason for the lower credit score, aside from the propensity to pay late, is that they have lower limits, which max out faster than consumers with higher credit limits. Another strike against their credit scores is the fact that these younger consumers haven’t developed a very rich credit history. Older generations didn’t have the Credit Card Accountability Act, which makes it difficult for consumers under 21 to qualify for a credit card. Parents can still co-sign and get their 18-year-olds a credit card.

Millennials need to know that there are various factors that contribute to their credit rating. Keeping balances low, keeping the number of credit cards low is important, especially revolving accounts. Paying bills on time is an obvious factor that’s very important to keeping credit scores favorable. Many Millennials don’t know they have bad credit until it’s the attempt to move into a new apartment, at which time their credit score shows them to be a bad candidate. A sure sign that they’ve not held up their end of a financing agreement is when bad debt collection agencies begin to call.

Companies doing business with Millennials might have a difficult time getting them to sign up for their third-party financing arrangements due to the fact that this generation is not as credit-focused as others. However, given the future buying power of this generation, and given their current habits regarding paying down their accounts, it makes sense to partner with a collection agency that can protect your investments.

Connecting with a reputable agency does a lot more than recover your lost receivables; it also helps protect your reputation. The best agencies will work with your clients to ensure that they are treated with respect and professionally.

Omega-RMS, llc., is one of the industry’s leading providers of contact campaigns and third-party receivables solutions. Some clients choose to skip the accounts receivables labor and pass it on to Omega, which means Omega pays them immediately and there is no wait for monthly installments that may or may not come on time.

How Overdue Payments Can Affect Your Medical Practice

According to a report from NerWallet Health earlier this year, the biggest cause of bankruptcies Bankruptcy 1in America today isn’t credit cards or mortgages – it’s a result of unpaid medical bills. Roughly 2 million people will be affected this year alone.

Medical practices need to be proactive if they want to receive the money for which they’ve worked hard. Every medical practice is impacted at one point or another by unpaid bills. Cash flow is negatively impacted, especially when terms of payment haven’t been specified with patients. There are actually several steps a medical practice can take to lessen the impact that overdue payments cause.

Patients need to know first and foremost when their accounts are due. Medical bills aren’t on the top of the list for most consumers to pay, so make certain they know exactly when the payments are expected. Even with the most effective billing practices and collection efforts, not every account will become current. When these can be identified early, call in a collections expert and have them work their strategies to regain that lost money.

Are you making enough contact with your clients? You can call them more than once a month to see when they can get current on their account. Slow-paying accounts need encouragement to pay on time. Reminders often do the trick. To keep them from falling way behind, they might need to be called every week. This can be a strain on the medical practice’s staff, which is why many facilities hire collection agencies to do the calling for them.

Many medical practices fail to bring in a collection agency early enough. The use of a third party to collect debt makes a lot of sense for many reasons, the first of which is that they are professionals and know how work out a payment agreement that works for the consumer. Don’t wait past 90 days to bring in the third-party to collect overdue payments. The earlier the collection agency can make contact with the debtor, the better chance they have of collecting debt.

Medical practices are focused on providing the best patient care possible, which means they might not be experts in rules and regulations regarding collection laws. Many states have the same laws for businesses as they do for collection agencies. Falling out of compliance with these laws can result in fines and poor public perception of your medical practice, which is another reason why calling in professionals to reclaim money owed to you, is a good decision.

When medical practices partner with Omega-RMS, llc., they’re teaming with a group of professionals who have the latest technology at their fingertips and the best training available to communicate with your clients. Some practices are afraid to bring in a debt collection agency because of the negative association clients will have with the practice. Omega does what they do so well that they can actually improve your public image while reclaiming your money.