Tag Archives: collection agency

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Are you performing proper credit checks?

Any accounts receivable department has an important job to do, and it’s not always a smooth process. Companies provide products and/or services to their vendors on a daily basis, but payment isn’t always made on time. If a company knew which vendors are reliable when it comes to payments, the amount of uncollected debts would decrease.

A credit check can be your savior. When engaging in business with a new vendor, there’s nothing wrong with performing a credit check to review its history in paying its debts. This is a perfect way to discover if a vendor if responsible when it comes to paying balances. If you spot any red flags in their payment history, you can develop a collection plan to increase your chances of being paid, or in some cases, choose not to do business with a customer if you have reason to believe you won’t be paid.

Let Rapid Recovery help you with your debt collection needs.  Get a FREE Quote today for collection agency services.

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Get what you’re owed with a few simple steps

A debt collection agency’s job is no easy task, but there are ways to make your accounts receivable processes a lot less stressful. Plan ahead to effectively collect the debts you’re owed.

Make a payment request – Believe it or not, some companies fail to do as little as reminding a debtor that there’s an outstanding balance. Ask for payment via an invoice and establish a due date.

Have a plan for overdue payments – This could be a mix of letters and phone calls. Set up a schedule of communications, such as five, 15 and 25 days past due to request your rightfully owed money.

Consider using third-party collectors sooner rather than later – Debts are more easily recoverable when you don’t wait to address late payments. A collection agency’s success rate quickly decreases with each month that goes by without a payment, so contact an agency quickly if a debtor isn’t responding to your professional communications and requests.

Let Rapid Recovery help you with your debt collection needs.  Get a FREE Quote today for collection agency services.

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Learn to efficiently manage your accounts receivable

Revenue is important to any business, but it’s not just about the profits. It’s also about successfully collecting money owed to you by debtors. It’s not always easy, but with some organization, you can start to collect outstanding balances more efficiently.

Track your loans – Document who you lent to as well as the date of the loan and the expected payment due date. Also make a special note for overdue payments.

Document customer payment history – Not all customers pay on time. Knowing when a payment can realistically be expected from any given debtor can ease the collection process down the road. Tracking when payments tend to come in from customers will allow you spot trends and allow you appropriately develop a collection plan.

Acknowledge your debtors when paid – Especially for on-time payments, a ‘thank you’ can go a long way in ensuring you’ll continue to receive prompt payments.

Let Rapid Recovery help you with your debt collection needs.  Get a FREE Quote today for collection agency services.