Monthly Archives: June 2014

Recovery Services That Have Your Back and Your Reputation in Mind

Collections 14Deciding you need a recovery services professional is only the beginning of the battle against negative cash flow. Now it’s time to actually get out there and find someone that can represent you well, protect your clients and keep the cash flowing in the right direction at all times.

So, how do you know when you’re in a good relationship with your recovery services professional or a bad one? It’s not always obvious. In fact, many companies don’t know they’ve picked a bad company until they get a large number of complaints about the way the company is treating clients who have fallen behind on their payments. There are other clues to consider as well.

Do you get the feeling you’re just another number with your current agency? Do you feel like you’re getting run-of-the-mill services? This is often called the “cookie cutter” treatment. You should have a debt collection specialist on your side that values communication and provides you with customized services that fit the needs of your company and the preferences of your clients. Before you sign on with a collection specialist, ask them if they value transparency in their work; ask if they offer personalized services and ask them how they distinguish themselves from other companies.

As mentioned previously, you don’t want a company that practices collection techniques that garner complaints. If you are getting phone calls from clients who threaten to never do business with you becausee of the way your third party collection service has treated them, it’s time to move to another service.

You’ve likely got your eye on the bottom line; it’s one of the reasons you decided to partner with a recovery services professional. With that in mind, what is your return on investment with your current collection service? Consider that the average debt collection company can recover about 70-75 percent of debts that are less than 90 days old. Is yours underperforming? Every company is different, so the 70-75 percent on a 90-day debt can vary, which means you need to offer some flexibility and set some parameters. However, when you decide what’s reasonable and those targets aren’t being met, move on to a collection specialist that can give you the return on investment you deserve.

When you interview a collection specialist, ask them to explain to you how they stay compliant with the Fair Debt Collection Practices Act. They should have lawyers on staff that know how to train the agents that collect debt for you. They should be licensed and capable of doing business for you in every state in the union.

When you partner with Omega-RMS, llc., you get recovery services that offer you an excellent return on investment. You also get a firm that treats your clients with respect and keeps them coming back to you for more business. Contact us today and find out how our services will benefit your cash flow situation.

The FDCPA and What it Means for Debt Collection Agencies

The Fair Debt Collection Practices Act (FDCPA) has been in place to protect consumers since 1978. For too long, consumers were subjected to unfair, unethical and abusive tactics by some debt collection agencies. These agencies tarnished the public image of the entire industry and required an act of Congress to help contain.

Despite the provisions, restriction, rules and regulations the FDCPA places on the industry, those who operate above board applaud its assistance in weeding out the bad from the good.

The FDCPA does not cover debt that is applied to the collection of corporate debt or any debtFDCPA Law 1 owed related to business or agriculture. It does apply to personal, family or household debt incurred by consumers.

What is a debt collector? The FDCPA defines one as a person who “regularly collects, or attempts to collect, consumer debts for another person or institution or uses some name other than its own when collecting its own consumer debts.” So, if your company wants to hire a third party to collect debts on its behalf, you will be hiring a company that will be responsible for following every letter of the FDCPA.

What is a consumer? A consumer is a borrower, the barrower’s spouse, and the parent of a minor barrower, guardian, administrator or executor. A consumer can only be communicated with during the hours of 8a.m. to 9p.m. Courts and the consumer can grant permission to be contacted outside of these hours. If a debtor has hired an attorney, it is the attorney who should be contacted regarding any attempts at collecting unpaid debt. If the attorney does not respond to calls, the consumer can then be contacted.

A consumer can, under the FDCPA, request that a debt collector cease attempts at collecting debt. After such a request, the debt collector can only send notice that they will cease collection efforts.

Debt collectors cannot use harassing or abusive practices in their attempts to collect debt. For instance, a collector obviously can’t threaten violence or any harm to a person’s reputation or property. Collectors can’t use profanity or obscene language while addressing consumers. Furthermore, they can’t publish a list of debtors’ names that refuse to pay and they can’t make repeated calls or allow a telephone without an answering service to ring repeatedly.

Reputable debt collectors will not violate any of these provisions, nor will they falsely represent themselves or the debt owed to them, which is also part of the FDCPA.

The reason a debt collection agency adheres to the provision in the FDCPA are many, but include civil liabilities up to $500,000 or one percent of the debt collection company’s worth, whichever is less. Another reason debt collection agencies follow the rule of the law is because they want to keep a good public image and continue to attract clients.

Omega-RMS, llc., is a proponent of the FDCPA and strictly follows each of its rules. Omega employees are trained beyond what is required so that they can help improve the reputation of the industry and to represent clients with the best possible level of professionalism.

Customer Debt Leads to Cash Flow Concerns

Collections 16Every business owner will experience problems getting customers to pay up on their past due accounts at some point in their career. However, when too many pay too slowly or don’t pay at all, cash flow starts to become a real issue, which means business growth becomes virtually impossible.

In the worst situations, slow paying customers can make it difficult to pay the monthly bills, including the rent and utility bills. Some business owners even have trouble making payroll because of customer debt.

The first line of defense for keeping customer debt at a minimum is to make sure your clients understand the terms of their creidt. Make sure your clients know what their responsibilities are from the very beginning. Keeping your clients informed of various fees that can bump up their balance is also a good way to keep surprises from derailing trust and delaying payments.

Billing is another area where business owners have weaknesses that lead to cash flow issues. For instance, if you’re not sending out billing invoices promptly, you can expect late payments. Don’t let your invoice envelopes be mistaken for junk mail – one way around this is to have an “invoice notice” stamped on the front of each envelope used for billing. If you haven’t received payment within 10 days, send out another notice.

At some point, you have to decide when you’ll make a call to the late-paying accountholder. If multiple reminders produce no payments, having a person in the accounts receivable department put in a call with the accountholder is a good step to take. This step also reveals reasons as to why the client can’t make a full payment. The best course of action is to work out a payment plan that better suits the individual. Besides, some payment is better than no payment.

Going after late payers is a touchy subject for many business owners. Some face a decision of going to court with a client who doesn’t pay up. Others are ill equipped to make the appropriate communications with clients who pay late and wind up with a complaint against them for their debt collection practices. This is why the smarter choice is to go with a third party that knows the collection industry inside and out and can effectively collect on customer debt.

A professional debt collection company has more hardware and software as well as training to find accountholders who suddenly disappear. They also know how to communicate with them and can work out a payment plan that keeps you flush in cash and able to plan a more consistent strategy for business growth.

Omega-RMS, llc., has the business solutions you’re looking for when it comes to collecting on debt. As part of the Association of Credit and Collection Professionals, Omega has proven itself a valuable asset to businesses in several industries that rely on our strengths. Education, medical, consumer products and memberships are some of the industries in which we’ve had success.

Bad Debt Collection Solutions for Healthcare Professionals

Medical Bills 3As most healthcare providers are noticing, patients are increasingly becoming more responsible for a greater share of their medical expenses. This has led to a startling number of debts going to bad debt collection. Fortunately, the debt collection industry is able to assist healthcare professionals in recovering these funds.

Most people wouldn’t consider cash flow to be an issue at the doctor’s office, but that is increasingly the case with practices that don’t have bad debt collection solutions at the ready. The problem lies in the fact that while many more Americans are getting covered with insurance plans, too many of them are taking on insurance with low premiums and high co-pays. To combat the problem, more practices like yours are taking steps to get in front of the late payment behavior and establishing some guidelines to keep patients out of trouble.

Counseling at the point of service and getting more insights into the financial situation of each and every patient is a good start. You can no longer bill patients the way you once did. Why? Because patients were once only responsible for paying about six to 10 percent of their medical bills; now it’s as high as 20 percent on average. This means that as an industry, there are billions of dollars at risk.

Healthcare revenue directors are getting more creative in their billing practices in an attempt to keep accounts current. The proactive approach to billing patients includes contacting patients up to a week or more prior to their office visit and using various tools to determine their ability to stay on top of what they owe. Some have gone as far as bringing in teams of financial counselors to keep the payment planning on the right course.

Today’s billing strategy involves a lot more one-on-one action. Personal attention like this breeds better results. However, practices that get overzealous with their customer contact can be walking a thin line that some patients will perceive as badgering, which can lead to official debt collection practice complaints. Most states have regulators that will come down harshly on practices for overly aggressive collection practices, which is why professionals best handle bad debt collection efforts.

Healthcare providers are trying to give patients more control as well as a greater understanding of the charges on their bill. Patient portals offer a more insightful look at what they’ve being billed for while office consultations spell out exactly what is covered by insurance and what isn’t. With a better understanding of the charges, the patient knows what they’re responsible for and when they should be sending in their payment. Many offices are asking for payment on the day of service as well.

When medical offices partner with Omega-RMS, llc., they’re getting a bad debt collection service with many solutions. Clients enjoy the reporting gateways provided by us. They also like the performance analytics, tools and resources they’ve grown to rely on in their debt recovery process. Check us out today and see how we can improve your cash flow.

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.

Past Due Accounts Strain Cash Flow

Collections 9Dealing with customers who can’t pay their bills on time is something every business owner will have to deal with throughout their career. However, there are some tips you can follow to make past due accounts less of a burden on you and your cash flow.

You know it’s important to extend credit to your clients. You develop more customer loyalty and boost your numbers with a credit program. However, there is some risk involved because not everybody pays on time and some people simply refuse to pay at all. You should have a very distinctly defined credit policy that spells out how your credit works and what’s expected of your customers and past due accounts. Make certain your terms are clearly written and that your clients sign off on them.

Some clients move without telling you where they’ve gone, which means your invoices could be going to the wrong house. However, if you use “address service requested” on your envelope, the postal service can locate the person’s new address for you. This comes with a cost, but it’s certainly less than what you’ll gain from finding the new address and come to terms on payment arrangements.

Companies who frequently contact customers who have missed a payment have more success in getting them to become current on their account. If you jump on them really early, you’ll have an even better success rate.

In your credit policy, you should spell out what action will be taken on overdue accounts. This way, the client can’t be offended by any action you take to get what is yours. For instance, if you say a collection agency will be called in on past due accounts two months old, they should know that a professional collection agent will be calling on them soon after their account is 60 days late.

If you have dedicated staff members for collecting debt, you should make certain they are well trained and know about collection laws in your state. This is where a lot of companies get into trouble – they don’t know how various rules and regulations built around protecting consumers are bent or broken, which can result in lawsuits.

One of the best ways to ensure that your cash flow isn’t suffering due to overdue accounts is to bring a professional debt collection agency on board. They will not only have the expertise and training that helps you get your money back, they’ll do it above board and make sure the Fair Debt Collection Practices Act isn’t violated.

When choosing a professional to take care of your past due accounts, make sure they are licensed to do business in every state. You don’t want a company licensed in one or two states to do your collecting as they are not capable of going after all of your overdue accounts.

Omega-RMS, llc., is a collection company that has a proven record of success. Companies that have brought Omega on board not only see their old debt diminish, they’re also able to put their employees back to work growing the business instead of ineffectively chase down debt. Call us today and find out about our effective solutions for debt recovery.

Payment Recovery is Best Left to the Professionals

Regardless of how efficient your system is, you’ll run into payment recovery issues at some point. It’s not unusual for companies to see duplicate payments and overpayments, which means cash flow can be significantlyCash Flow 3 affected. This doesn’t happen to large companies exclusively; even smaller firms can miss the details that will result in payment recovery action later. What can you do to protect yourself?

1. Automated Processes Can go Awry
Your automated business processes can be a big help to you in many of your daily tasks, helping you to make quick work of tedious items. Unfortunately, some automated services don’t recognize duplicated invoices, which means they’ll pay more than once. Another problem area is an automated service that sends payments to the wrong place. You should have a technician cover all the bases and look for areas where these mistakes are leading to payment recovery situations.

2.  Don’t Give Away Money While You Race to Sustain High Performance
Your procure-to-pay process could be at fault, especially if you’re running disparate and inefficient processes. Human error is also a common problem in this arena. You could have discrepancies in your pricing, which is a particular problem with large organizations, but can also happen with the small ones. Overpaying suppliers because of incorrect invoices and/or mistakes made in deductions and allowances are also common problems. Slow down and check over all of your processes to make sure everything lines up.

3. Don’t Underestimate the Value of Bringing in a Third Party for Payment Recovery

Companies lose millions and millions of dollars per year through financial leakages. It’s obvious that even the biggest and best have a problem identifying where the money is escaping, and in some cases, companies don’t recognize leakages until long after the problem started. This can lead to unrecoverable situations and a total loss of that revenue. However, companies that bring in a third party to look at capital and cash flow management procedures can help find the leaks and tighten up loose areas.

It’s not until a professional third party comes in to investigate the situation that the company realizes more transparency in its spending or strategy in its sourcing. Contract management and procurement management are also areas that most companies can’t expect to be experts in, which is why it makes perfect sense to seek help from an outside source that does that kind of work full time.

Payment recovery solutions also include the most common situations where your billing procedures are spot on but your account holders fail to live up to their end of the bargain and pay what they owe. This is also a situation where a professional collection agency can come in and collect debt you thought you’d never see again.

Omega-RMS, llc., has worked with companies small and large across many industries to recover lost revenue. From accounts receivable management to early intercept recovery services to contingent collection services, Omega has solutions that will improve your cash flow and help you grow your business. Contact us today and find out how our professional services will boost your profits.