Free Collections Advice on Debt Collecting

You want to make money, so you need customers that will pay—but how do you know which customers those are?   FreeCollectionsAdvice.com’s Number One Tip:   Pre-Screen your customers!   Did they pay their bills with their other suppliers? Check for a business license Check for judgments Have consistent policies and procedures for screening customers 

Wer'e always talking in our podcasts about how important it is to keep an accurate, complete records, and how important it is to understand the collection laws in your state--and the state you're collecting in. Today we're going to really give you some specific examples of what can happen when you don't do that. There are a ton of legal issues involved in this, and you definitely want to be as knowledgeable about this as possible, or have somebody working for you who is. So, let's just get right into it.

The new normal, where businesses and people may decide to not pay and yet feel no guilt or ethical quandary. How can you prepare your business to limit the risk?

New Rules proposed by Consumer Financial Protection Bureau

The rewards are huge when you motivate the team, and the effort surprisingly small. Get creative with motivation and stay upbeat with your approach. An enthusiastic team will outperform others, and reduce turnover too. Want to recover in more profits? Take a moment to motivate your team every week and have some fun with it.

There is real value in an empowered credit department and real profits to retain. A few simple guidelines can strengthen your sales team by giving them backing in negotiations that prevent profit erosion. Customers will understand their obligations better and minimize profit leaks.

This is a general discussion on the term “performance collections.” What is performance collection? Simply put, it’s collecting on goods or services. It’s really about getting “performance” from the customer—whomever your customer might be—and/or collecting what you were promised. Let’s look at a scenario that’s a little different from our usual perspective of a collector trying to get a debt paid.

Keeping Great Records! We have talked about how having accurate, complete records is crucial to successfully collecting the money you are owed. If you do not know what you are owed, who made what deal or what arrangement, how the original contract may have changed, and when an agreement was made, then how are you going to get your money? Your client may say, (Well, your sales person told me I could pay 50% now, and the rest later);if you do not have a record of that, you are depending on memory. Face it, trying to recall conversations that may have taken place amongst many sales calls is not ideal. If anyone in your company makes a special arrangement with a client, it should be recorded and accessible.

Choosing and working with a collection agency can be difficult. Do not simply choose a collection agency from a listing: investigate them. They will be representing you with customers - make sure they make a professional impression, and work within the laws. We tell you how.

Setting Goals helps your staff and company achieve objectives in an organized format. As with any goals, you are working toward a productive outcome, which, in this case, is bringing in payments. Your ultimate goal should be to never have a collection problem. Until you reach that goal, here are some points to help you set high expectations, and realistic goals:

Many businesses loan computers or business credit cards or a pay advance to their employees. If your business does this, make sure that you have a written policy that must be followed to make sure you get what you are owed from your employees.

We have seen these mistakes many times, in many companies. Use this list to track down your blunders, or to avoid making any! Biggest Collection Blunders: First collection blunder; Not checking our website! Seriously, we have information that may help you avoid or correct collection problems. Second - Make sure your company is in compliance with the laws of states in which you collect payments. If you do not abide by the laws of the particular state you are collecting in, you can lose your right to collect the debt you are owed. ...continued...

The biggest billing mistake that is made is that the information that gets written down on the sales order do not always get transferred onto the invoice.

Setting up your accounts well can make the difference between getting paid and going broke. These tips from FreeCollectionsAdvice.com can help you get your money!