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Welcome to AMA Firm's Blog - Your Source of Latest News in Commercial Collections Industry
Today, a list of communication means includes a lot of strategies. People call each other, send text messages and emails, use video calls and enjoy other advancements in technology. Individuals have their own preferences about their most comfortable way of dealing with others. The issue of choosing one becomes particularly important when it comes to dealing with debtors. It can be a good strategy to ask your debtor about the way he prefers. This trick helps the debtor keep in touch with you in the way he finds easiest.
We have been talking about business debt recovery for quite a while, however, wouldn’t it be much better if you as business owner didn’t have any debt in the first place?! So, we gathered some tips on how to ensure a stable financial future and avoid debt for business owners altogether.
Alexander Miller & Associates commercial debt collection agency is an expert in fast track debt recovery and onsite investigations. We provide excellent debt recovery services in Houston and nationwide without the expenses and resources needed for tiresome and dragging lawsuits.
The market of debt crecovery is overcrowded with lots of commercial collection agencies, companies and firms offering their services in the field of debt recovery. Here are 3 more tips to consider when selecting a partner in the debt collection process.
1. Make a study.
Debt collection agencies may vary in size and range from local firms working only within one state to big international companies with an international network of certified investigators and experience attorneys. Choose the right agency meeting your requirements. Alexander, Miller & Associates offer a wide range of debt recovery services in Houston and nationwide using their cutting edge techniques and methods and cooperating with their extensive network of examined professionals.
The most wide-spread payment models are flat fee which is usually quite small and offered in the early stage of debt collection process and contingency. In AMA firm our low contingency rates are only charged once we collect. We offer a no collection, no cost service.
If you are in the unfortunate position of collecting commercial debt, chances are you may not know where to start. Collecting commercial debt can be very intimidating, you rarely know what type of reaction you will get when you speak to a client, so we brought together a few tips that could help you with that first call.
Preparation is key.You want to review the client account thoroughly before reaching out. Make sure to have the account history, any notes on the account, last invoice, and have them in front of you for reference.
Adopt the right attitude.Keep your interactions professional. You drafted a contract expecting payment after your services were rendered, it is not uncalled for to expect payment. Do not lose your temper by raising your voice or swearing, this will only make the situation worse.
Contact the right person.Avoid calling and getting redirected to “someone in accounting”. You want to identify the person who will be making payments and reach out to them. This can get rather tricky, as you might be stuck talking to the secretary for a while. A deadline might serve useful in this scenario.
Control the conversation.Keep the client focused on the debt, not on personal stories and excuses. It’s inevitable that the client will give you excuses as to why the debt is not being paid, but always bring the conversation back to the debt and repayment plan.
Remain flexible.Most people hate debt, so there might a good reason as to why they stopped making payments. Make sure to keep your payment options open and work with the client. A reasonable payment schedule benefits both parties.
Take detailed notes.While on the call, jot down as much as possible. You want to be able to look through the notes and have enough information to distinctively reiterate the conversation. Take note of contacts, times and dates, product usage, anything that could be used in litigation; the more detailed, the better.
If you have tried the above methods and haven’t had any luck, then you should think of contacting a debt collection agency with a proven track record of success.
As 2016 comes to an end, many businesses are looking forward to the start of a new fiscal year. A new year brings on different obstacles and growth opportunities, but chances are you don’t want one of those obstacles to be old uncollected debt. This is when a reputable debt collection agency comes in handy.
Statistics show that after the first month of uncollected debt, the chances of recovering debt decreased to 93%. Although that may seem adequate, the numbers take a sudden nosedive; after 3 months, there is a 73% chance of recovery, and after 6 months, there is a 50% chance you will not get paid. Needless to say, if you hit the one year mark of uncollected debt, the odds are stacked against your favor and you face a 75% chance of not receiving any payment.
Time truly is money when it comes to recovering payments, so you want to make sure you are addressing uncollected debt as soon as possible. However, collecting payments can be tricky. Some clients may avoid you like the plague! Others may become defensive and shut the conversation down. You also walk a fine line when dealing with long-term clients who are going through a tough time and do not have the ability to pay for rendered services; you do not want to lose a valuable client when collecting debt.
For situations that require a delicate approach, you will be more successful in recuperating payment when partnered with an experienced debt collection agency. Through our Customer Assistance Program, we are able to approach your invaluable clients with tactics that will retain your relationship and advance the debt collection process.
One issue that always comes up in the debt recovery process is getting a hold of a customer. What happens when you run into difficulties getting a delinquent client on the phone? It can be easy to rush to judgement when this happens and you can even start believing that the client is purposely avoiding a you.
Sometimes this is the case – and sometimes it’s not.
Most debt collectors know that you shouldn’t start the debt recovery process with this assumption. There can be many reasons for a late payment, so before concluding that the client is deliberately evading you, pause for a moment and consider these five ways to get through to them on the phone:
Consumer debt may indeed receive a lot of attention from the media, but business-to-business debt receives major amount of the debt recovery market. Of all the different regulatory bodies in the consumer collections market there is actually no de facto regulatory body overseeing the commercial debt collection recovery.
If you are in collection industry you probably heard about new proposed changes to debt collections law which would affect the way debt collection agencies do business. Consumer Financial Protection Bureau (CFPB) proposed these new regulations with the idea that it will give more protection for small businesses and individuals. Many other commercial debt collection agencies, as well as debt recovery firms, view these newly proposed rules as a hinderance to the way they currently pursue and collect debts from individuals. The precedent has been set for these proposed changes by an earlier recommendation from the CFPB in where they recommended changes to payday lending.
Sometimes negotiations do not work. All the phone calls, demand letters and reasoning will not get a debtor to pay. At times your customer has no intentions in resolving this debt that is rightfully owed to your company and all routine debt recovery practices have been utilized. Times like this takes thinking outside the box and it’s time to get someone in the field making you a priority.
When utilizing a Private Investigator (P.I.) to supplement your debt recovery efforts, timing is the key. It should not be only used as a last minute effort, Private Investigators are to be used to gather info to strengthen your case. It pays to use a P.I. that has experience in debt recovery and asset liability investigations.
When a P.I. goes out to visit a business, their main objective is to gather information to strengthen your debt recovery, not to harass the debtor company or staff. They can interview employees, take pictures of applicable assets and gather as much info as they can prior to being asked to leave. The gathered information can help reinforce your case and also usually results in a call back to the debt recovery agency from the debtor to revisit the case.
A private investigator can also be helpful for different investigative services. These include assisting with skip tracing, asset searches, asset liability investigations, business investigations and collections services. In general, a P.I. is a great tool to keep in your toolbox when you require extra strength and need to dedicate the due diligence to be successful with those difficult debt recovery cases.