The True Cost of Collections

50 %
50 %
Information about The True Cost of Collections

Published on March 15, 2014

Author: JureviciousStudios



Collecting on a debt for your business is complicated and frustrating. Make sure you understand the laws and costs of doing your own debt collecting.

The True Cost of Collections

Understanding Collections • Collections is the process of collecting what you are owed. • For example, you might provide your product or service to a client. • If the client fails to pay, you deserve to employ collections strategies to receive what you’ve rightfully earned.

Doing Collections Yourself • Many business owners and managers try to do the collections themselves. They’ll send letters or make phone calls to customers and request payment. • Unfortunately, there are some distinct downsides to this. You have to devote your own limited resources to a process you’re not an expert in, and the results aren’t likely to be what you wanted.

Loss of Time • Doing collections yourself is time consuming. It requires keeping track of who still owes you which amounts, checking back with them, and pestering people who don’t want to be contacted. • With so much accounting, correspondence, and fretting over the collections process, you’re using valuable time that would be better spent on other business activities.

Lack of Experience • Unless your business happens to be a debt collections agency, you are not equipped with the knowledge or the experience to do an ideal job of debt collections. • That means you won’t get the results you’re looking for, and you might even run into problems that you could have avoided with the proper expertise. The last thing you want is legal trouble from your collections efforts.

Legal Trouble There are laws in place that govern proper ways to collect the debt you’re owed. You have to comply with: • HIPAA rules • federal fair debt collection regulations • credit reporting rules • and more You must respect privacy and avoid overly aggressive collections. Otherwise, you might be unable to collect the debt you’re owed, and these actions could even leave you personally liable!

Using Debt Collections Agencies • To avoid the costs of doing debt collections on your own, you might consider hiring a debt collections agency. These are organizations that train their employees deliberately to track down the money you’re owed. • However, many of them are national agencies that don’t work closely with your business or carefully learn the ins and outs of your particular situation.

Business Attorneys • For many business owners or managers who need help with debt collections, a business attorney is the best choice. • Business attorneys are fully aware of how to navigate the laws surrounding debt collections, and they are more intimidating to debtors than a collections agency. • This is because the possibility of legal action against a debtor is immediately obvious in a business attorney’s letter. Attorneys can also obtain and enforce legal judgments on collections, so they represent a greater threat. This all means better results for you.

Good Luck with Your Debt Collections! For more information on debt collections and to talk to a business attorney, contact Northwest Business Law LLC.

Add a comment

Related pages

The true cost of debt settlement -

When a collection agency offers to settle a debt for less, be aware of the other costs. breaks it down for you.
Read more

Collections (Java Platform SE 7 ) - Oracle Help Center

Using this method is likely to have comparable cost to using the like-named field. ... Returns true if the two specified collections have no elements in ...
Read more

The True Cost – Life Is My Movie Entertainment

This is a story about clothing. It’s about the clothes we wear, the people who make them and the impact it’s having on our world. The price of clothing ...
Read more

THE TRUE COST OF COAL - The Beehive Collective

... we released the True Cost of Coal graphics campaign in 2010. ...
Read more

The True Cost of Coal - Beehive Design Collective Store

These patches are images sampled from The True Cost of Coal, our narrative graphic centered around mountain top removal coal mining and natural resource ...
Read more

The Hawaii Independent: The true cost of Hawaiʻi’s ...

The true cost of Hawaiʻi’s militarization ... but a call to discussion of the true cost of housing the military here in Hawaiʻi: ... Collections ...
Read more

The true cost of blood collection. - ResearchGate

Publication » The true cost of blood collection.. ... Data provided are for informational purposes only. Although carefully collected, accuracy cannot be ...
Read more

The True Cost - Digital Download – Life Is My Movie ...

[Personal License] Buy Now Feature Length Documentary: 92 minutes About the Film: This is a story about clothing. It’s about the clothes we wear, the ...
Read more

Performance Measures for Credit, Collections and Accounts ...

Performance Measures for Credit, Collections and Accounts Receivable. ... True DSO Definition: The ... Cost of Collections
Read more

Collections Etc - Home Decor Catalog | Gifts, Apparel ...

New email subscribers qualify for a 15% discount on their next order. Stay tuned for more exciting news from Collections Etc., including exclusive ...
Read more