Minimizing time wastage in the collection process

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Collecting payments from clients can be a time-consuming process. Most clients can be expected to settle their balance in the normal course of business. They will, however, be affected by various factors. Keeping track of payment arrangements with each client will prove to be difficult unless businesses develop an effective strategy.

In general, there are a number of established methods for collecting debts owed to the business. The methods that companies use depend on a number of factors such as their relationship with the client, the reasons for non-payment, and their own financial situation.

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Relying on notices of late payments alone leads to a lot of time wasted. Letters are the least effective collection technique because people know the strategy behind it. If a client receives a gentle reminder then it is obvious to them that they have more time before they actually need to pay.

Collections can be done better in person or through the phone. Not only does this type of approach reduce the lag in communications, it also allows the business owner to immediately respond to any issues raised and get a firm commitment from the client on the date of payment.

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An aggressive approach to collections may be more effective at allowing businesses to reach desired goals. However, it comes at the risk of ruining a good relationship with a client. For that reason, threatening legal action for collecting debt may not make sense for important clients and close associates.

When dealing with large companies, businesses may need to adjust their collection methods and timing to jive with the schedule of the client. This may involve finding out the schedule for getting an invoice approved, the documents they need, and if they require a regular follow-up call.

Brennan and Clark is a commercial collections agency with a management team that has been together for the past 20 years. For more information on its services, visit this website.

Chasing payments: Collection agency or small claims court?

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When sending payment notices through e-mail, snail mail, and telephone calls don't work, a creditor has a few recourses left to recover what is due.

Collection agencies collect debt on behalf of the creditor in return for a commission, either through a flat fee or a percentage of the amount recovered. Some collection agencies function as debt buyers: They purchase delinquent or charged-off debt, typically in bulk from large firms, for a fraction of its face value. Most agencies have a “no collection, no fee” policy.

Collection agencies attempt to recover debt in a variety of ways. They do all of the legwork associated with contacting and dealing with debtors, from sending demand letters to making follow-up phone calls to the debtor's home. Some practice skip tracing in the event that a debtor leaves town in order to avoid collection action.

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Taking the case to small claims court is another way to seek payment for a debt. Small claims courts can resolve debt disputes of relatively small amounts of money. They have a maximum limit to the amount of monetary judgments that can be awarded. The limits vary greatly among states. For example, Arizona has a $3,500 cap, while the limit in North Dakota is $15,000. If the amount owed exceeds the limit, the court will not hear the case.

The process of suing in small claims court is typically straightforward, but it can be time-consuming. While most states require small claims cases to be heard within 60 days after filing, the defendant or debtor must be served with a summons before the case can proceed. This can prove difficult to achieve if the defendant has left town or otherwise cannot be found.

In addition, if the defendant or debtor does not live or work in the plaintiff or creditor's state, the small claims case must be filed in the state where he or she resides.

Collection agencies are often used by creditors when they wish to avoid the hassle of going through small claims court or if the cost of pursuing legal action exceeds the amount of debt owed. In some cases, creditors use collection agencies if the debt owed is more than the dollar limit of the small claims court in their state.

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Brennan and Clark is a member of the Commercial Collection Agencies of America. Subscribe to this blog to learn more about debt recovery.

Debt collection: Where to get help

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Debt is a fatal disease for a business, especially one whose aim is to pursue repayment for an outstanding debt.

Commercial debt collection agencies like Brennan and Clark offer services that facilitate and manage companies' dues. The firm, which was founded in 1980 and operates as a member of the Commercial Law League’s Commercial Collection Agency Association (CCAA), helps various clients achieve financial recovery through strategic management and planning of debt payments.

Among its popular services is its “Cash Now program,” which empowers clients by absorbing the risks of companies' current liabilities. Such program also allows businesses to get a guaranteed net return within five days of placing accounts for collection, maintaining total control over the collection process, and saving administrative time for monitoring its debtors.

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Meanwhile, to secure an efficient operational system, the firm also provides a “Receivable Support Solution” to clients who are having difficulties with cash flow. Led by account recovery specialists and financial advisors, the firm assists and guides companies in achieving a well defined goal for their collection process.

Acting as agents of creditors, Brennan and Clark, based in Villa Park, Illinois, also provides support for the evaluation of the procedures of its clients. The firm works hand in hand to implement procedures, controlled by reliable metrics, that are managed prudently.

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Visit this website for more information on tapping efficient services for your debt collection needs.