The Secret to Having Zero Delinquencies and No Bad Debts

Man Throwing Bills in the AirDo you want to know how to have zero delinquencies and no bad debts? It’s simple. Don’t sell your product or service on credit. Require cash in advance.

For example, David tells about one time his mother called to say she wasn’t feeling well. She asked him to take her to the doctor’s of­fice. The doctor examined her and requested she come back the following week. Upon leaving the examining room, his mother went directly to the receptionist to settle her account and make her follow-up appointment. The re­ceptionist told her that it was the policy of the doctor’s of­fice to require payment in full at the time of service, but since she was coming back the following week, she could pay for both visits then. Continue reading

Posted in Business planning, Collections, Collector Pledge, Commercial Collections, Compassionate Collections, Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

How to Make Debt Collection Calls Fun

Let’s be honest, making collection calls is probably one of your least favorite activities. Many people who have collection responsibilities also have other duties. They always choose to do their other work first and save collections for last. They will open the mail, answer the phone, take out the trash and even offer to help their coworkers before making collection calls. You want everyone to treat your cash flow as a priority, but most people don’t like asking for money. Continue reading

Posted in Business planning, Commercial Collections, Compassionate Collections | Tagged , , , , , , , , , , , , | Leave a comment

How to Evaluate Collection Agencies

Collection agencies understand that customers who have fallen behind on their bills often need guidance. Collection agencies strive to help these customers settle their accounts without litigation. Choosing a collection agency, however, can sometimes be a challenge. There are thousands of collection agencies in the United States, and each agency’s quality and approach can vary widely. In many states, all you have to do to open a collection agency is get a telephone.

How do you know which agency is best for you? You must do your homework. Ask for a client list and thoroughly check the references. If possible, tour the agency, meet the employees and watch them in action. The collection agency you hire is an extension of your business. Everything they do and say reflects on you. Continue reading

Posted in Collections, Commercial Collections, Compassionate Collections | Tagged , , , , , , , , , , , , | Leave a comment

Litigation: The Last Resort When Collecting Past Due Accounts

During the collection process, when do you hire an attorney to litigate? Not until you have tried everything else. Litigation is usually not appropriate for debt collection. The balance of the debt may not be large enough to warrant the expense of a lawsuit, there may not be assets to attach, or a job to garnish. When a lawsuit is an option, it should be saved for last. Before resorting to hiring an attorney, you should try collecting the debt yourself and hiring a collection agency. Continue reading

Posted in Business planning, Collections, Collector Pledge, Commercial Collections, Compassionate Collections, Customer service | Tagged , , , , , , , , , , , , , , | Leave a comment

OH MY! Which past due accounts do I collect first?

How to Prioritize Your Past Due AccountsToo many accounts, too little time? Having limited resources is a common problem in collections. When you have too many accounts to collect, in addition to deciding how to handle them, you must also decide which ones to collect first.  Continue reading

Posted in Business planning, Commercial Collections, Compassionate Collections, Martin Sher | Tagged , , , , , , , , , | Leave a comment