| |
| |
|
Small Business Information |
|
|
|
Collection Agency Selection
Frankly, given the legal and regulatory requirements involved in attempting to collect a debt, it makes as much sense to do it yourself as it does to try to remove your own appendix. A collection agency is, on the whole, much cheaper than a doctors - and lawyers. Do yourself a favor and let a professional collection agency handle this complex matter for you. It is an unfortunate fact that the collections industry is not regulated much by the government. Absolutely anybody can set themselves up with an "office" and call themselves a collection agency. You don't have to be certified or accredited by anybody. You don't need any kind of special degrees or anything like that to start a collection agency. So, while there are plenty of reputable, ethical collection agencies out there, are also plenty of con artists. It's a case of buyer very much beware. Beyond making sure the collection agency is credible, you'll need to make sure they are right for your business. Each collection agency may have different specialties and, even if they don't, they might not have the specialized knowledge required to collect in your industry. A collection agency working in medical collections must be familiar with medical terminology and insurance requirements. Make sure the collection agency has the skills and knowledge needed to successfully collect on your particular type of account. You will also have to consider the fact that the collection agency will have to be paid for their services. A collection agency usually charges you a percentage of the money they collect on your behalf; currently the industry standards range from 25% to50%, depending on the dollar amount of the account, the age of the account, how much overall business the collection agency gets (or expects to get) from you in the long run, and other factors. Some collection agencies charge a low flat fee per collection which may be a more affordable solution for some businesses. What you really want to know about this collection agency, however, is what they quote as their average recovery rate. The collection agency cannot guarantee that they are going to collect the money you are owed, because their ability to do so will dependent on many unforeseen factors. But the collection agency can give you a percentage of approximately how much their collection agency collects of the accounts that are placed with them, in general and in your particular industry. That is going to be much more important than their commission rate. Finally, you'll want to check your potential collection agency out with both the Better Business Bureau and your state's Attorney General's Office. Specifically, it is important to discover if there have been any complaints registered against them by disgruntled former clients, or if they have had to defend themselves against alleged violations of the Fair Debt Collection Act. Remember that this collection agency will be representing you and your business. You don't want the sort of collectors who threaten to break people's knee caps, or call their neighbors to harass them. Make sure you're dealing with real professionals. With the right kind of collection agency, you will be able to develop a real working relationship with the account executive who is servicing your account. These guys can be enormously helpful, particularly when it comes to dealing with bad-tempered debtors. There are going to be distinct legal limits to the kinds of things you can say and do, no matter now nasty people who owe your money become, and consulting your collection agency rep is a lot cheaper than talking to your lawyer. As long as all parties involved recognize the fact that yours is a partnership, in which both of you treat each other professionally, you will be well on your way to a good, long-term working relationship. Collection Agency Outsourcing offers you free information on collection agencies and debt collections issues.
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Racing the Competition What is the Big Race all about when it comes to creating relationships?The big race is simply the ability to win the deal on a consistent basis. You will need to perfect your message, be able to state it clearly and precisely, and follow up relentlessly. Do You Microbifer in Your Cleaning Business? Microfiber cleaning towels have been around for about ten years now. When I first heard about them they were being sold through distributors in an MLM business. Do You Own Your Business Or Does It Own You? What was your aim when you went into business for yourself? Chances are you wanted to be your own boss, be in control of your future, improve your chances of earning a high income, among other things.How are things for you right now? Do you feel in control of your business? How many hours do you put into your business each day? Each week? Will your current business enable you to retire in the next 10, 20 years?Do you sometimes feel overwhelmed by all the administrative tasks involved in running a business? Do you wish life could be simpler?More importantly, if you don't work, does your cash continue to flow (inwards, that is)?You see, if you can't take a vacation for fear that you won't make any money while you're away, or if your business is such that you're paid per hour (meaning that if you're not working you're not getting paid), then what you are is a glorified employee, and your business owns you. 11 Things Small Business Owners Can Learn From The Miracle On Ice 1. Know Where You're Going - Coach Herb Brooks had a strategic plan for assembling the American team. Justice In Action During the 1980 presidential campaign, candidate Ronald Reagan vowed, if elected, to appoint the first woman to the United States Supreme Court. Six months after his inauguration, President Reagan kept his promise - nominating a member of the Arizona Court of Appeals. Electronic Franchise Disclosure and E-Signature Future for Investors It has been discussed allowing Franchising companies to electronically disclose franchise documents to the public and prospective franchisees. If the Federal Trade Commission wants to make UFOC information available electronically through email to catch up with the newest technologies then it will get complaints and make up another rule saying no unsolicited UFOC maybe sent through email. Window Cleaning Business Case Study How do window cleaning franchise businesses start? It is a fascinating case study indeed, as most all window cleaning businesses start from such humble beginnings; a bucket of water, a sharp entrepreneur and a quality squeegee. I never thought in a million years I would ever enter the Window Washing Industry. Doing Business With Friends: Five Tips for Preserving the Friendship... and Your Sanity! My colleague, Jane, recently lamented to me an all too familiar story about mixing business and friendship. Jane subcontracted copywriting work out her friend, Joan. Franchise Buyers from Hell I ran a franchise company for many years, a car wash franchise, and we use to get the most ridiculous franchise buyers who thought they wanted a franchise. It seems we had to deal with these Kookoo birds because they have consumer rights and the Federal Trade Commission, which looks over franchising goes out of their way to let these consumers get away with these tall tales. Six Sigma for Small Business It is not surprising that some people may perceive Six Sigma as being only for large corporations. Major corporations such as Allied Signal, Black & Decker, Dow Chemical, Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Motorola, Sony, and Toshiba have all rolled out Six Sigma efforts and achieved outstanding results. Where To Get Money For a Franchise Idea How often have you thumbed through a business opportunity magazine, noticed a franchise opportunity advertisement, and felt you'd really like to get in on that.. Employee Email and Internet Use - A Small Business Guide IntroductionIt is widely recognised that Email and the Internet is here to stay! Both mediums have become a vital part of business and personal communication in a world that increasingly relies on technology. We understand its benefits and sometimes berate its downsides; too much email, lack of personal communication, spam, the risk of employees accessing inappropriate material and using employer resources for personal gain. Launching your Business with a Chamber of Commerce Why are Chambers a good launching pad?Chambers provide you with more ways to get to know the business community than most organizations. I was once elected President of a Chamber and the Board strived to get businesses involved with each other. Business Scents - Do They Work? You see it often in large shopping complexes. Customers seem to be flocking to a certain stall in large droves. Self-Employment: Managing Your Money: Tips for Living with a Fluctuating Cash Flow (Part One) The way you manage your money is one of the first things you'll change when you move from employment to self-employment.You are moving from an environment where you received income in equal amounts at set intervals to one where your income fluctuates. Obtain Maximum Results For Your Small Business Through Better Time Management Most small business owners are faced with so many responsibilities and an unbelievable workload throughout the day. Mainly because of the many different roles that we have to play. Janitorial Cleaning Service: Getting Started A janitorial cleaning service is one of the best businesses for a hardworking, blue collar person to start from scratch. Every business and every building needs to be cleaned once in a while - in some cases, many times each day. Beginning an Internship Program CONSIDERATIONS FOR YOUR INTERN: Specify the number of hours the intern will be needed each week. Will specific hours be adhered to, or will the schedule be more flexible? Applicants want to know up front what they will be paid, if anything. SBIR - A Nice Add-on Business If you are a small business and qualify to participate in the SBIR program, it is a natural enhancer to your existing business. If you are small enough you may be able to start a company using SBIR funding, but you will soon come to realize that if your sources of income are not diversified (with SBIR being only one source) you might fall victim to funding cycles and no income. The Virtual Assistant As a small business owner, outsourcing work to Virtual Assistants is fast becoming a popular and intelligent decision. The business owner saves enormous amounts of money by cutting the costs of offices and equipment overhead as well as expensive benefits packages.
|
|
|
|
|