It’s an unfortunate fact, but virtually every business that offers consumer credit and alternative payment structures will have to deal with delinquent accounts sooner or later. When that time comes, let this blog article be the ace up your sleeve. Don’t cheat though!
A wide range of debt collection resources and effective profit recovery strategies exist to help you minimize the impact of the non-payment of customer accounts. To choose the approach that’s right for your business, it’s essential that you understand the major types of profit recovery programs and familiarize yourself with interest groups and specialized, industry-specific informational resources.
There are two major approaches to debt collection available to individuals and businesses:
- In-house profit recovery. This is a time-intensive, expensive approach, and being put on collection duty is something most owners, owner operators and employees dread. Most organizations begin with in-house collections, many transition to an agency after they experience the resource and morale drain.
- Agency outsourcing. Hiring a third-party firm to collect consumer or commercial debt on your behalf is a common strategy. These firms either charge contingency fees, claiming a percentage of the recovered debt, or flat fees on a per account basis. Some collection agencies offer both models to the advantage of the customer.
Taking advantage of informational, industry-based debt collection resources can help you choose the firm that will provide the services you need at a price you can afford. Here are three helpful websites you can visit as you do your due diligence:
- ACA International – The Association of Credit and Collection Professionals, founded in 1939, brings together 5,000 members worldwide. They establish ethical standards, offer certifications, provide a forum for collection issues and offer resources for locating the agency best for you.
- CAC – The California Association of Collectors is a state-based organization which draws on over 90 years of industry expertise.
- insideARM – This is a thorough, comprehensive informational and employment resource for accounts receivable professionals and collections agents, also offering consumer insight into issues facing businesses such as yours.
- Insider Blogs – Such as Michelle Dunn’s Credit and Collections blog, offer in the field takes from both sides of the collections fence.
These organizations offer a great deal of relevant information and research resources that you can use to determine the best debt recovery approach for your business.
Just beginning your search for a collection agency? Start by contacting us for the straight deal.