Keeping track of the money coming in is one of the hardest things a business has to deal with on a daily basis. In other words, making sure the customers make their payments. Sometimes the payments are made on an agreed upon schedule. The schedule can vary from 30-150 days or any other time frame agreed upon by both parties. Outstanding balances from clients are known as accounts receivables. It is an easier way for businesses to provide pricey services to all customers.
However, what do you do if a customer refuses to make a payment or is currently not able to make payments? The process of maintaining and collecting payments can be a full time job in itself. So, in order to continue in their respective expertise businesses usually hand off these customers to a debt collection agency. These agencies excel at using their exceptional skills for a business's collection needs.
Basically a collection agency is a company used to settle owed accounts receivables. Collecting accounts receivables are important because the longer they go uncollected the less likely the business will get the money owed. Collection agencies can work for a fee or a commission of the owed balance.
Collection agencies can be structured three different ways, 1st party, 3rd party or debt buyers. Some of the larger businesses have their own division for debt collection, this is considered 1st party. An independent company that goes out and collects unpaid accounts receivables for businesses is a 3rd party collection agency. Finally there are debt buyers, who can take over the collection responsibilities for a company for a percentage of their value.
The debt collection process begins with the collection agency getting together with a business's accounts receivable department in order to find out which accounts need to be reached out to. From there the agency takes over the process following strict rules and regulations the collection agency uses their experience and skills to figure out a solution on how to get the business its owed money. Some of the regulations include strict contact times (between 8am and 9pm), no obscene language and absolutely no threatening, or law enforcement impersonations.
However, what do you do if a customer refuses to make a payment or is currently not able to make payments? The process of maintaining and collecting payments can be a full time job in itself. So, in order to continue in their respective expertise businesses usually hand off these customers to a debt collection agency. These agencies excel at using their exceptional skills for a business's collection needs.
Basically a collection agency is a company used to settle owed accounts receivables. Collecting accounts receivables are important because the longer they go uncollected the less likely the business will get the money owed. Collection agencies can work for a fee or a commission of the owed balance.
Collection agencies can be structured three different ways, 1st party, 3rd party or debt buyers. Some of the larger businesses have their own division for debt collection, this is considered 1st party. An independent company that goes out and collects unpaid accounts receivables for businesses is a 3rd party collection agency. Finally there are debt buyers, who can take over the collection responsibilities for a company for a percentage of their value.
The debt collection process begins with the collection agency getting together with a business's accounts receivable department in order to find out which accounts need to be reached out to. From there the agency takes over the process following strict rules and regulations the collection agency uses their experience and skills to figure out a solution on how to get the business its owed money. Some of the regulations include strict contact times (between 8am and 9pm), no obscene language and absolutely no threatening, or law enforcement impersonations.
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If you're looking for some more details about accounts receivable collections, simply contact Rapid Recovery Solution, Inc. today!
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