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.