An introduction to small business debt collection

Image source: amsterdamnews.com

Small business owners might find it a challenge to collect payments from clients. While there are some customers who just choose to forget about their unpaid bills, some actually have real, understandable reasons for their failure to pay. However, whatever these may be, a business has the right to collect the amount owed to them by its clients.


A business owner must not take it personally when a consumer misses a payment. The best thing to do is to look into the problem, find solutions, and prevent its recurrence. Businesses have to be proactive and provide gentle reminders immediately after the invoice due date.


One pro tip in small business debt collection is gradually increasing assertiveness in the follow up communication. The initial call, letter, or email must offer the customers the benefit of the doubt and should be made with a positive and kind tone. However, by the third collection reminder, the tone may be changed to a more direct and assertive tone, without sounding unprofessional and offensive.

Image source: freebusinessforms.com

Various channels in handling invoicing and debt collection should be utilized. Email reminders are likely to be buried in a busy inbox. Additional means of reaching out to consumers who have missed payments, such as phone calls and even hard copy reminders on their doorstep, should be utilized.


This task should be designated to specialized employees within the business, who must then be provided the appropriate training, support, and incentive. Spending too much time and resources on debt collection can be taxing for the operations of a small business. When an account is long overdue, it may be time to ask professional help from a debt collection agency.


Brennan and Clark is a business collections firm that has been in the business for over 30 years. The firm’s management team has been together for the past two decades, and the combined experience and expertise of its staff enable the company to guarantee higher average recovery rates than the industry average. For more updates on business collection, subscribe to this blog.

Ways to expedite debt recovery for your business

Image source: aa-accountants.co.uk

It’s increasingly becoming more difficult for companies to collect their receivables, even with pledges of loan collaterals from borrowers. Businesses must, therefore, be conscious of establishing more-defined methods to collect faster. Below are some tips to speed up your collection procedures.


You can begin by establishing a reward system that benefits those who pay early and penalizes those who are always late. There is a clear collection cycle that borrowers sign for and must abide by, so hold them to it. But customers will be more encouraged to pay up faster if, say, you can offer percentages off bills, discounts, or other value-added services to those who do so. You can also waive late charges if borrowers quickly pay outstanding balances.


The billing process should be better streamlined if you are to recover debt much sooner. The premise is that you can’t collect what you haven’t billed. Send those invoices promptly and track billables regularly. Monitoring will be largely helped by having a team dedicated to doing courtesy collection calls, especially for delinquent customers. It could also be that there are mistakes made in inputting the customer address, or that the borrower has changed their email address. That little call goes a long way in expediting the payment process.

Image source: financebusinesstrading.com

As a lender, you’ve to exercise due diligence on both new and existing customers by closely studying their credit rating, payment history, and references. This way, you eliminate risks. Lastly, it’s best to get in touch with a professional collection agency. You don’t have to just do it all on your own or be forced to go to court; a third-party collector will have a devoted team doing the job for you, allowing you to focus more on running and improving your business.


Business collections agency Brennan & Clark aids entrepreneurs in eliminating credit losses. The firm has been around for more than 30 years and is known for forming strategic alliances with its clients to formulate effective collection strategies. More on the firm and its services here.

Why you should opt for a certified collections agency

Image source: rccmn.com

A sound and effective collections agency is premised on professionalism. Business owners should all go for one that is certified, as certification is the banner of training, experience, and expertise. After all, collection is a craft that needs to be developed, implemented, and approved with the utmost care.


A certified collections agency is backed by the Commercial Collections Agency of America (CCAA), which guarantees that all members of the collections body are certified and therefore adhere to the strict rules and regulations of the umbrella agency. The CCAA is a nonprofit organization that works for the best interests and goodwill of customers while upholding the integrity of the collections industry.

Image source: necrotixnetwork.net

Some of the advantages of getting a collections agency approved by the CCAA are prompt remittance of funds to creditors, a minimum surety coverage of $300,000, the maintenance of separate trust accounts for collected funds, and, in general, a better method for attaining maximum dollar recovery.


Moreover, collections agencies under the wing of the CCAA abide by the umbrella organization’s strict codes of ethics, attend its annual seminars and training, will provide the assistance of a legal counsel if necessary, and creditors can directly get in touch with the executive director if complaints arise.


For over 30 years, Brennan & Clark has been aiding businesses in achieving well-defined goals for their collection process, evaluating all internal procedures, and implementing improvements and guarantee better collections results. Brennan & Clark is a proud, certified member of the Commercial Collection Agencies of America. For similar reads, visit this blog.

How to handle clients who miss their payments

Dealing with delinquent accounts can be quite the headache.  You have bills to pay and to salaries to hand out while your client misses their payment for the third straight month.  Sadly, this is a common occurrence.  According to the Credit Research Foundation through the National Summary of Domestic Trades Receivables, 87% of all accounts are current and .04% are 90 days past due.  The longer it takes to collect, the less likely collection will happen.  So if you have problems collecting from delinquent clients, here are some ways to handle them.

The first thing you should do is to prevent the account from being delinquent in the first place.  You can do this by following-up on invoices before they are due.  This is a good move for clients with histories of delinquency.

Offering different modes of payment could aid clients in making payments, and could also preserve business relationships with them, if this is the desired outcome.  If you restrict forms of payment to wire transfers, clients could have a hard time procuring the amount if their funds are not well-maintained.

If a client is past 90 days due with their payments, it is highly advisable to hire a debt collection agency to settle the account.  These professionals have years of experience in dealing with delinquent accounts.   It will also demonstrate to your client that you mean business and could provide a wakeup call with regard to their relationships with their suppliers. 

Brennan & Clark is a business collections firm that has been around for over 30 years. The firm’s combined experience and expertise enable the company to guarantee higher average recovery rates than the industry average. Visit this website to read more about debt collection.

Getting to know the real Emily Stillman

The Commercial Collections Agencies of America has now started a program called Commercial Collections Agencies of America Gives Back. This year, they will be supporting the Emily Stillman Foundation. 

Image source: YouTube.com

But who is Emily Stillman? 

Emily Stillman was a girl who always wanted to be an actress. When she was younger, she would perform fantastical musical numbers for her family. If they weren’t around, she would sing and dance for her dolls. All her determination and practice paid off in senior year when she won the State Forensics Competition. For Emily, that was the achievement of a lifetime. 

Emily had quite a personality. She was strong and magnetic. People always knew when she was around, as she brightened up the room in so many ways. But perhaps the defining characteristic of Emily can be seen in other people, in how she makes them feel about themselves. Family and friends, and even those who’ve known her for a short amount of time have often said how good and light they feel with her around. 

Emily was unique and one-of-a-kind. She always placed a huge value on her time with her family. She was funny and witty, and always knew how to put on a show. And she was true to herself and others. 

Emily Stillman left us on February 2, 2013, after being infected with Meningococcal Disease (Serogroup B). 

Her absence is still very much being felt. 

Image source: foreveremily.org

Brennan & Clark is a top collection agency in the country and proud member of the Commercial Collections Agencies of America. The company has achieved its success due to its practical and effective strategies. Learn more about the firm by following this Facebook page.

A Debtor's Guide To Respectfully Dealing With Collection Agents

Image source: Pixabay.com

Dealing with collection agents can be a stressful ordeal especially for those who can't settle their accounts immediately. However, the calls and the written reminders can be handled respectfully. Here's a guide that will help debtors respond to collection agents:

Be the first to show professionalism

Some debtors end up getting mad at the callers once they find out they're calling because of an outstanding debt. While some callers seem to be rude and impersonal, those on the other end should take the high road by keeping a courteous tone. Instead of complaining about other debts and unfair service, debtors should inquire about the source of the debt and other necessary details with the promise that they'll settle it in time.

Ask for a written notice

After making a call, collection agents are supposed to send written notices to inform the debtors of the amount they need to settle. When the conversation becomes uncomfortable, a respectful way to end it is by asking for this letter. Not only is this a necessity, but it also keeps track of what has been discussed so far. In case a person has been wrongly credited, they'll be able to refute the claim with this statement on hand. The written notice also needs to be sent within five days from the last phone call.

Image source: Pixabay.com

Despite the numerous misconceptions, most collection agents have been trained to treat debtors with respect. With the Fair Debt Collection Practices Act (FDCPA) in place, the goal of companies and collection agencies is to reach a reasonable settlement with debtors to cut their losses.

Brennan and Clark is a business collections agency that provides customized receivables support solutions that help businesses eliminate credit losses. Visit this page for more information.

The Various Legal Ways To Collect Commercial Debt

In debt collection, there are instances when debtors or borrowers are unable or unwilling to settle their account, and creditors would have no choice but to use legal measures to resolve the delinquency.  Some of the steps they could take are the following:

 Demand letter

 Before any form of litigation or legal processes is undertaken, a demand letter should first be sent to the debtor with the hope that a voluntary payment is given.  Hiring a collections attorney or agency is a creditor’s best bet as the debtor would most likely take the request for payment more seriously when help from a third-party expert is acquired.  The demand letter could also provide alternative resolutions to the delinquency.

Image source: huffingtonpost.com

Investigative work

 Consumer debts, which are governed by the Fair Debt Collection Act, have much more restrictions when it comes to collection, limiting what creditors can do in finding ways to collect payment.  In commercial debts, though, businesses can legally use several investigative tactics that can help identify the current location of debtors and uncover any hidden assets they might have.

Litigation

 A debt recovery lawsuit can be filed if debtors continue to avoid paying their liabilities to a company.  If there is sufficient proof that a debt claim is valid, judicial bodies can use different tools to force collection, including securing liens on properties, garnishing business assets, or placing a levy on financial assets.

Image source: kmlegalnet.com

Learn more about the subject of debt collection by following this Brennan & Clark Facebook page.