Collections and the bottom line: What debt collection agencies can do for you

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According to award-winning agency Brennan & Clark, debt collection agencies specialize in collecting delinquent debts on behalf of their clients, debts which are usually 60 days past due at the least. And often, the results are positive.

For today's blog, Brennan & Clark reviews some of the benefits companies can reap from hiring a third-party debt collection agency.

First off, debt collection agencies such as Brennan & Clark specialize in various kinds of debt. Depending on their strategies, some agencies are more likely to zero in on debts that have been delinquent for a shorter amount of time or a smaller amount of money.

These agencies also remit to their clients collected debt from credit card debt, medical debt, automobile loan debt, business debt, student loan debt, personal loan debt, and unpaid cell phone and utility bills. Typically, clients pay 25 to 45% of the amount to debt collection agencies.

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Furthermore, debt collection agencies are incredibly well-versed with the laws that govern debt collection. For instance, they know that the statute of limitations varies by state, and a reputable collection agency will follow those rules to the letter. This means clients won't have to worry about any legal repercussions.

In certain situations where debt collection agencies and companies have to deal with difficult debtors, agencies know how to negotiate settlements with customers and pursue legal action if debtors refuse to pay at all.

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 and the industry's most comprehensive guarantee. For more informative reads on business debt collection, follow this Twitter page.

Hot topic: What are creditors legally entitled to?

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Brennan & Clark, a business collection agency that has been operating since 1980, is also a member of the Commercial Collection Agencies of America. It has given high-quality and effective collections services for four decades, and in recent years, has shared the many things surrounding collections through its series of blogs.

Today’s blog is a rather important blog that explores one of the hottest topics in debt colletions. In here, Brennan & Clark answer the question “what are creditors legally entitled to?”

While that may sound like a question that begs for vague answers, Brennan & Clark assures readers that what creditors are legally entitled to are very clear. For starters, they have a legally protected right to collect both secured and unsecured debt when debtors fail to pay. There are several legal ways in which to go about it.

One way for creditors to legally collect debt is through the use of collection attorneys or lawyers. These law practitioners file lawsuits and use other legal collection methods to collect consumer or commercial debts, represent creditors’ interests in a bankruptcy proceeding, foreclose homes or commercial real estate if the buyer defaults on payment, or recovers secured goods such as vehicles if the buyer defaults on payment.

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Brennan & Clark also notes that creditors can forego the use of lawyers and contact debtors either directly or through a collections agency. The best collections agencies, such as Brennan & Clark, are well-versed in the legalities of collections and are highly effective in collecting debts.

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.

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.

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.

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. 

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.

An introduction to small business debt collection

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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.

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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.

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.

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.

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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.

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

A Few Key Terms From The Debt Collection Industry

The collection industry in the United States is a vast one. After all, over 30 million Americans and businesses owe money to someone somewhere. It is important that people know some key terms when dealing with, or hiring a debt collection agency. Here is the first part of the key terms series that people might need to know about collections.

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Accounts receivable is the money clients (whether people or companies) owe to another company for being provided goods or services, or both. It is a line of credit, or an IOU.

Arbitration is any informal hearing called for a dispute.

Balance sheets are financial statements containing the assets and liabilities, as well as the shareholders’ equity at a given time.

Bankruptcy is declared by an individual or a company when they are no longer able to pay their debts.

Cash flow is the money that goes in or out of an account in a period of time.

Co-debtor is one of two (or more) entities who are liable for the same debt.

Credit limit is the maximum amount of credit that any financial institution can give its customers or clients.

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Customer relationship management, or CRM is the strategy used by many businesses to help customers get what they pay for.

Income statement is the financial statement that shows the net revenue, and how it becomes net income. This is also considered a profit and loss statement.

Brennan & Clark LLC is an agency that specializes in business collections. Learn more about them and the services they offer by visiting this blog.

Handling Chronically Delinquent Clients: Tips For Small Business Owners

Unlike most clients that are sometimes late in payments for legitimate reasons, chronically delinquent clients habitually pay late, pay rarely, or in some cases, never pay at all.

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Serial late-payers are the bane of businesses of every size. Delinquent accounts, however, are a particularly serious problem for small businesses. Having enough habitually delinquent customers compromises a small business' cash flow. To make matters more difficult, small businesses rarely have the tools and expertise needed for collecting on delinquent debtors.

The following are some tips for small businesses dealing habitually late-paying customers.

Have a process in place

No matter how small a business is, it must develop and follow a clearly defined set of policies for late-paying customers. These procedures must include details such as payment deadlines, late fees, and frequency of payment reminders.

Note that there shouldn't be a one-size-fits-all approach to all late-paying customers. A customer who regularly pays on time but forgot to drop a check in the mail for the last bill is dealt with differently than a customer who has never paid on time.

Communicate well and often

Businesses must invoice their clients on time, and clients with a history of late payments must be contacted on the date the payment becomes overdue, preferably over the phone or face-to-face instead of through email or regular mail.

Business owners should calmly yet clearly inform a late-paying customer about the overdue bill, ask for his reasons for paying late, and ask him to commit to paying the amount owed at a date both parties agree upon.

Consider hiring a collections agency

If a client refuses to pay or ignores all attempts at communication and negotiation, and his or her account is past due by more than the acceptable amount of time, business should consider hiring a collections agency. Taking a client to a small claims court can be time-consuming and costly, whereas collections agencies take care of the legwork when it comes to chasing after late-paying customers.Collections agencies allow businesses to get on with more pressing matters while recovering delinquent debts.

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Collections agencies are typically paid either a percentage of the debt recovered or a standard amount of commission for certain types of debt. Others charge monthly rates, while others offer the same services for a flat fee.

Brennan and Clark offers customized account receivables support solutions that eliminate credit losses. To learn more, like this Facebook page.

The Pros And Cons Of Extending Credit Terms

Credit terms can significantly affect the cash flow of businesses. Hence, it is a must for both big and small businesses to have established credit terms. One of the most common dilemmas concerning credit terms is whether they should be extended. Here are some benefits and drawbacks of extending credit to clients: 

Pros:

More loyal clients- A business that extends credit gives clients the impression that the company trusts them. Also, clients will most likely appreciate the convenience that extended credit offers because it helps them to be flexible with their finances. 

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Competitive advantage- Other businesses in the market may not be offering extended credit to clients, so companies that do otherwise gain an edge over those competitors.

Increase in sales- Studies show that most customers tend to be more willing to pay more with the knowledge that they can pay later. This results in businesses gaining more clients and gaining sales, assuming that they pay.

Cons:

Unreliable clients- Extending credit may gain loyal clients, but it can gain unreliable ones as well. Businesses will often come across clients who pay extremely late or those who do not pay at all. 

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Cash flow problems- Strict credit policy results to steady cash flow while extended credit terms may disrupt the resilience of cash flow because of unreliable clients.

Insufficient income- Cash flow problems, if not handled efficiently, will most likely result in insufficient revenue. This may force the business to borrow money to sustain operations. 

Brennan and Clark has been providing businesses with quality debt recovery services since 1980. For updates about credit collection, follow this Twitter account.

The Don'ts of Business Debt Collection

There is a wealth of literature about collecting debts from late-paying clients. And while many of these tips have proven effective in recovering debts, business owners still need to be apprised on how not to collect payments, probably because most of the guidelines are common knowledge. Still, when they have exhausted all means to collect payments from late-paying customers, some are bound to commit costly mistakes in debt recovery efforts.

Owners of small and medium-scale businesses relying on payments to keep their operations and cash flow healthy should avoid the following mistakes in managing their accounts receivable:

• Incorporating additional fees or hiking up interest: Some business owners who have had enough of their delinquent customers slap on an additional fee or a higher interest, which they deem justifiable given the anxiety and stress they face chasing payments. However, doing so could just exacerbate the problem, with clients completely disregarding the penalties and the debt. It is best for business owners to adhere to their collection policies and terms no matter what.

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• Letting emotions get in the way: Business owners who tirelessly reach out to late-paying clients will at some point get frustrated. And when emotions run over, a host of new problems is likely to emerge. For example, a frustrated business owner who has to make the nth collection call could resort to threatening or harassing a client just to get payment. Doing so, however, could translate to legal woes that could be detrimental to the health of the business.

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• Waiting too long to contact a collection agency: If a business owner has exhausted all means to recover payment and still fails to collect, it is now time to hand over the responsibility to professionals. A collection agency like Brennan & Clark LLC can design a strategic plan that will maximize the chance of recovery.

Is your business plagued with delayed payments? Subscribe to this blog for more resources on the debt collection process.

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.