The Complete Beginner’s Guide to Debt Collection Services!
When someone starts a business, they don’t really dream about the problems that can and most likely will experience. People dream about more freedom. They dream about making money. They don’t dream about delinquent accounts or debt collection services.
One of the most common problems that you’ll encounter as a business owner, at some point, is the existence of delinquent accounts. Of course, if you’ve kept with our blog then you know that you have options on how to collect on your debt and you’ve learned the signs that will show you if your client has financial problems. If your clients fall behind, you have to collect. Many businesses decide that they want to work with a debt collection service in an effort to collect on their money, but they don’t know how to get started. That’s why Clients A.R.M. put together this post. It’s everything you need to know about debt collection services.
1 – Determine the Type of Debt Collection Service That You Need
The first step is to determine what type of debt collection service that you need. Do you want a debt collection service that says they are part of your organization or do you want one that acts under its own name? Both types of collection have its own benefits. The determining factor is what you decide will work best for your business.
2 – Do Your Research on Their Reputation
Earlier this week, we warned you of what can happen when debt collection services don’t follow the laws. When you make your list of debt collection services that you’re interested in finding out more about, do your research. Find out if they’ve had any complaints filed against them with the FTC, the Attorney General in your state or in the states where you offer your services, and check in with consumer protection agencies and the BBB.
3 – What Does the Debt Collection Service Offer?
Chances are good that if you need debt collection services that you can also benefit from other accounts receivable management services. While you may not be thinking about that right now, keep in mind that engaging in debt collection falls at the end of your accounts receivable cycle. So, can they offer anything that can help you prevent delinquent accounts from the start?
The benefit of choosing an accounts receivable management company that can meet all of your needs lies in the fact that you only need to contact one vendor if you have questions or problems. This saves you time. It also means that the accounts receivable management company understands your entire AR cycle and can offer you custom suggestions that meet your needs.
4 – Partner With an Industry Expert
Clients A.R.M. is an industry expert. We offer first party and third party collections. We are a licensed debt collection service in multiple states. To help businesses learn exactly what they need for debt collection and their overall accounts receivable management needs, we provide a free, no-obligation process review. Our process review will give you the expert input that you need that can help improve your entire AR process and minimize the risk of delinquent accounts. When you schedule your free process review, don’t forget to ask about how you can use our free financial tool to help your clients pay in full!