Global debt collection trends to keep track in 2020

Debt collection is a practice regarded older than the history of making money. As early as the barter system, the practice of debt collection has already existed. The debt collection industry has evolved since employing new ways of doing the practice.

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In 2020, consumer debt will continue to increase with credit card debt, auto loans, and student loans leading the trend. Debt collection methods will change through digitization since in-house collections, aggressive calling, and sending invoices have all been proven ineffective ways of collecting debt. Brennan & Clark notes that digitization of methods can improve the customer experience as technology-based debt collection will result in upgraded client engagement. As the prediction of artificial intelligence makes for better forecast numbers, analysis of client communication preferences and the level of trailing each client will require are ensured.

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Heavy reliance on technology will become more prevalent in 2020 as digitized methods will prove to be much better than previous techniques. A more preemptive manner will replace aggressive phone calls to collecting as a result of flexible payment options—a win-win situation for both the client and the creditor.

Brennan & Clark notes that mortgage remains among the top contributors to the nation’s overall debt scene as a single household has $150,000 in debt as an average. Medical bills aren’t as high as credit card loans, student loans, and auto loans, with an average citizen owing $597 in medical expenses. While debt collection for these expenses will be done in ways different than before, the debt scenario stays on a high level like the previous years.

Brennan & Clark is a business collections agency that works with clients in formulating an effective plan that augments the collections strategies that are already in place. For more updates like this, visit this page.

What happens to a company with a bad credit score?

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Most people are aware of what happens to a person with a bad credit score. Financial institutions could see someone with bad credit score as a liability. If you have a bad credit score, it will be unlikely for banks or other creditors to offer you a line of credit. Besides this, it can also affect your purchasing power. You may find it difficult to make large purchases like automobiles or properties if your credit score is terrible.


According to the finance experts at Brennan & Clark, a trusted debt collection agency, companies can also have a bad credit score. What does happen when a company has a bad credit score? Is it the same as that of an individual?

The answer is it can be worse for companies with bad credit rating. And like personal credit, a business can get a bad rating when it starts failing to make payments regularly. Perhaps the company has other payment obligations as well, and it chooses to use its line of credit to pay off other debts only to have its debts consolidated in its business line of credit.

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A business with a bad credit score is viewed differently by other firms. For example, utility companies would ask clients with bad credit ratings for a deposit before rendering any services. As for other services such as distributors, they may just outright deny the business of goods if they feel like the business won’t be able to make payments. Finance experts at Brennan & Clark believe that bad credit ratings are there to protect the users themselves from getting into debt so deep that they are unable to pay them off.

Brennan & Clark is a business collections firm that offers receivables support solutions to businesses. Through this complete program that is customized to meet the needs of every client, the firm provides assistance in evaluating and improving on a company’s collections process. Follow this Twitter account for more similar updates.

What business owners need to know about microlending

As part of upholding its stellar service to people everywhere, Brennan & Clark has shared a number of highly-informative blogs and articles on debt, credit, collections, and everything in between. On this blog, the firm focuses on microlending and what people need to know about it.

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Also known as microcredit or microfunding, microlending’s popularity skyrocketed in the ‘80s. With the subsequent boom of microenterprises in the decade (mostly run by people who didn’t have funding and needed to start over), the public’s opinion of microlending seemed to sway more towards the positive side. However, it has been questioned throughout the years.

An issue was raised on how most people who were lent money through microlending never really used or intended to use the funding for a business. Microlending affords these individuals with a brief reprieve from poverty, but also increases their expenses and deepens their debt through interest. As one critic puts it – microlending really doesn’t do poor people any favors since it inadvertently teaches them to spend more rather than save money. Ultimately, people in the lower income class don’t go above the poverty line.

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But not everyone who resorted to microlending sank deeper into debt. For some people, microlending funds were used to start small businesses (which is the ideal route, Brennan & Clark notes), thus breaking their own vicious cycle that many people fell into.

Brennan and Clark is a business collection agency that has been operating since 1980. A member of the Commercial Collection Agencies of America, the firm offers unparalleled service as well as the most comprehensive guarantee in the industry. For more information on the company, visit this website.

The importance of effective communication in debt collection

Brennan & Clark has a remarkable track record in business debt collections. This is due to factors such as well-trained collections agents and tried-and-tested methods of collecting. Another crucial part of its success in collecting business debts is communications.

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In debt collections, there is a proper way to communicate with the people and businesses who owe money. Communication is governed by rules and regulations such as those found in the Fair Debt Collection Practices Act. It is the Federal Trade Commission’s responsibility to implement these guidelines.

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The standards for communication are quite clear, as are the procedures to follow when reaching out to debtors. While Brennan & Clark have gone through many of the fine points regarding the instructions and standards used in debt collections in past blogs, the agency continues to reiterate why these instructions and standards should be followed.

The main reason following the guidelines is paramount is, so debt collectors don’t overstep their bounds. In doing so, collectors steer clear of any legal action from the debtor and are still free to continue collecting debt for their clients. If one goes through the many guidelines of debt collections, they’ll notice that most of the items pertain to the rights of the debtor, Brennan & Clark notes.

Brennan & Clark is a business collections agency providing customized receivables support solutions that help businesses eliminate credit losses. Click here for more information on the company and its services.

More tips for small businesses looking to manage financial risks

Every entrepreneur knows that proper money management is the key to achieving goals. If one is to avoid falling into financial debt while reaching company growth milestones, nothing less than a sound finance management is a must. Hereunder are some ways small business owners can best manage their money while maintaining good cash flow, courtesy of finance and credit professional Brennan & Clark.

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Keep track of expenditures: Simply establishing a process for monitoring spending will help a lot in avoiding financial risks. Watch your travel expenses and pay special attention to subscription-based services, as the rates of these may change without warning. Any abrupt changes in monthly charges should be detected, studied, and avoided if you are to maintain your profits.

Come up with budget statements: Always make it a point to prepare a budget report at the end of every fiscal year. You need a comprehensive budget guide if you are to keep your profits and not overspend. Determine the budget you’d have for the coming year while assigning certain portions to different business-related expenses. Only then will you truly able to calculate your so-called “thinking capital” for business growth.

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Open a separate bank account for your business: One of the fundamental tips in managing small business finances is having separate business and personal bank accounts. This way, you won’t be tempted to use your business credit card to buy personal luxuries. You avoid any future confusion with tracking your business income and spending by abiding by this tenet, Brennan & Clark advises.

Brennan & Clark is a business collections agency that aids entrepreneurs in eliminating credit losses. The firm has been in operation for over 30 years. More reads related to finances and credit management here.

Paying off debt: Always stick to the plan

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While Brennan & Clark is primarily a firm providing efficient business collections for companies, it also does its part in educating creditors, business owners, and consumers on the basics of collections, debts, credit, and the many aspects of finance through its blogs.


Today, Brennan & Clark tackles a topic that affects most Americans, business owners or otherwise—debt payoff plans. This blog won’t be coming up with plans, but rather will be providing helpful information on how people and businesses can stick with the debt payoff plans that they already have.

Be realistic.

Nothing causes a plan to fail quite like a lack of realism. Overestimation of possible payments, for businesses ands person in a given time period can backfire in disastrous levels.

Write it down.

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While businesses always have documentation of outstanding debts, many people do not. Brennan & Clark suggests putting everything on paper or in a file on the laptop or phone. This reminds every one of due dates and minimum payments.

Pay beyond minimum

Brennan & Clark explains that interest rates are often the culprits in crippling debt, especially when businesses and people always opt for paying minimum dues. Paying more than the minimum can shorten debt payoffs and overcome interest rates.

Limit loans.

Limiting loans for a month or two may be seem an easy plan, as Brennan & Clark explains, but it requires discipline and much planning, especially for businesses. However, it’s a good way to reduce debt and avoid further incurring more.
Brennan & Clark LLC is a business collections agency that provides customized receivables support solutions that help businesses eliminate credit losses. Visit this blog for more reads on debt collection.

PSA: Illegal ways to collect debt that everyone should be wary about

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Brennan & Clark is a business collections agency that has time and again proven that it can provide quality collections for its clients. However, the agency has taken that extra step to help inform people who are willing to read and learn about the ins and outs of collections. After all, debt collections, whether business or personal, is a big part of everyone’s lives.

On that note, Brennan & Clark shares with people its insights on illegal practices on collections that every American should be wary about.

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• Businesses that hire debt collections companies should do their research and should monitor how these companies collect debts for them. For example, in 2015, JP Morgan Chase was caught practicing illegal ways to collect debt causing widespread outrage, refunding of collections, and payment of penalties.

• The U.S. Federal Trade Commission regulates the ways debt is collected via the Fair Debt Collection Practices Act or FDCPA. Any method of collecting that isn’t part of the FDCPA guidelines is considered illegal.

• There are certain times of the day when debtors may not be contacted. These are early morning or late at night. The debtor may also be requested to not be bothered at work.

• Any threat, harassment (online or in the real world), cursing, non-stop calling, badgering, false statement, or deception is not allowed by the FDCPA.

• Charging a higher rate in the guise of an increased interest, which isn’t part of the creditor-debtor contract is considered illegal as well.

Brennan and Clark is a business collections agency that aids entrepreneurs in eliminating credit losses. The firm, which has been operating for more than 30 years, is known for forming strategic alliances with its clients. For more articles like this, visit this page. 

Traits that a good debt collector should develop

Mastering the art of collection and succeeding in the industry entails cultivating some key traits. Below are the most crucial ones to develop, according to credit solution professional Brennan & Clark.

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 A collection agent must have a clear sense of empathy if they are to be able to survey the situation from the point of view of the client. Contrary to what a lot of people think, empathy is more connected to logic than it is to feelings. You want the client to open up to you because your reasoning is logical.

Of course, to be empathetic entails having great communication skills. Effectively communicating the issue of the debt to your client puts you in a position to truly resolve differences. Explaining the situation well will allow you to build a trusting relationship with the client as you are being perceived as a problem-solver.

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With communicating well comes developing great negotiation skills. Make sure that the solutions you present always have the client’s best interest at heart. This often means setting aside your own judgment and criticism. Your goal is to provide win-win outcomes, allowing both parties to walk away from the negotiation table happy and satisfied. Finally, complement this by always beinggoal-oriented. Do your best to align your personal goals to that of the agency, as this will make your work rewarding on many levels, Brennan & Clark adds.

Brennan & Clark offers unparalleled service as well as the most comprehensive guarantee in the credit collection industry. The firm provides customized receivables support solutions that help businesses eliminate credit losses. For related posts, visit this blog.

Business collections to which creditors are entitled to

Brennan & Clark employs collections agents who know all too well the troubles creditors go through mainly because of businesses that don’t pay on time. The firm believes that creditors reserve the right to resort to legal action when debtors fail to meet the deadline of payment.

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Creditors give debtors all the chances and means to pay on time. Generally, creditors send emails, text messages, and call businesses that owe them money to notify these debtors about upcoming deadlines. This happens around a few days to a week before the due date.

The calls then continue even after a deadline. Though creditors may have different lengths of time before they hire business collections agencies for help, the average time is a week after the due date.

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However, if push comes to shove, creditors impose their rights to which they are very much entitled to. Aside from hiring collection firms such as Brennan & Clark, they also seek the services of lawyers whose area of expertise is debt collection. Collection attorneys, as they are known, file cases against delinquent businesses and are the lead representatives if the cases reach the courts.

For small business owners who’ve secured personal loans for their businesses and are unable to pay their loans, aside from facing the closure of their establishments, they may also have to give up any assets they may have put on collateral, to which once again, creditors are entitled to.

Brennan & 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 20 years, and the combined experience and expertise of its staff enables the company to guarantee higher average recovery rates than the industry average. For more reads on debt collection, visit this blog.

How to choose a good collection agency

Collection agencies play a major role in retrieving money that is owed to a business, especially if big amounts are involved. Choosing a good collection agency takes a lot more than knowing if they can get money for you. Brennan & Clark, a top collections agency, shares tips on how to choose a good collection agency for your business.

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Identify the agency’s success rates. Debt collection is a cutthroat industry, and success rates could vary. You would want to seek the assistance of a debt collector that has a good history of successful retrievals. Brennan & Clark suggests that you should look for agencies that provide comprehensive reporting, spin-down reports, and is transparent to the costs of legal fees.

Check for required licensing. Under collection laws, agencies must have a license to practice in the state that their office is located. If your business deals all over the country, you will need a collection agency that is licensed in all areas where all the debtors or your customers live.

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Seek for an agency that values technology and training. The most competent debt collection agencies have the best software and location tools in their industry. You can ask what kind of software they use and you can even look online with regards to the reputation of their company.

Brennan and Clark is a business collections agency that aids entrepreneurs in eliminating credit losses. It works closely with clients formulate an effective plan that augments the clients’ collection strategies. For more articles like this, visit this page.

How to collect debt effectively through email

When done correctly, debt collection by email can be a resounding success. Some of the basic mistakes that companies make when trying to collect unpaid debt from their clients are being rude, unprofessional, and even resorting to illegal means. Avoid these missteps and collect debt effectively through this medium—here are tips from trusted collection agency Brennan & Clark.

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Email can be a great way to collect unpaid debt, despite phone conversations remaining the preferred way of discussing this business concern. This is especially true if you need to follow a paper trail, document the conversation, or make quick follow-ups.

First and foremost, you have to showcase good communication; consider outsourcing this service if you have no time or satisfactory experience in communicating this important financial aspect. You may also consider using collection email templates and online examples for proper guidance in creating past due emails and collections emails. Use well-crafted templates to collect client payments faster—and stay credible and come across as an expert while doing it.

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Be short and straight to the point in your subject line, letting the recipient know what it’s factually about. This will greatly increase the open rate of the email. Stay polite and professional in your tone, too, by keeping the content short and clear about the action needed on the recipient’s part. According to Brennan & Clark, part of this is sending the email only to the concerned individuals (not their managers or direct reports if it’s unnecessary) as well as responding in a timely manner.

Brennan & 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 20 years, and the combined experience and expertise of its staff enables the company to guarantee average recovery rates higher than the industry average. Read more on this page.