Collection of Doubtful Accounts

At the beginning of every fiscal year-end, finance professionals examine their accounts receivable aging and budget for the following year’s doubtful accounts. If your firm is not employing trained credit professionals using the latest debt recovery strategies and collection vendors, setting a budget for doubtful accounts is likely holding back cash that could otherwise be paid to shareholders.

Your business works hard to give excellent service and deserves to be paid for its services. You owe it to the shareholders of your organization to explore all avenues to get paid. You are not alone if you have yet to explore all avenues to get paid sooner. Many finance professionals are so busy with the regular day-to-day work or new systems implementations to take a long look at solutions to an unpleasant problem.

The top four reasons finance professionals delay action to collect to fill accounts are:

1)      Our staff already do this as part of their jobs

2)      I am too busy right now

3)      The only problem accounts we have are close friends of the owner

4)      We don't want to lose the customer

This top four list comes from hundreds of calls our salespeople make or receive each year. As you can see, if any of these four top reasons resonate with you, you are not alone. The collection of doubtful accounts could be a more pleasant subject. That's why developing a simple system to deal with this issue consistently will have you sleeping soundly at night.

Many business owners and finance professionals who take the time to implement simple processes experience more profitable business growth with less stress and headaches. If your firm gives its customers time to pay, the collection of doubtful accounts will be part of your reality.

There are numerous benefits to a sound policy for collecting doubtful accounts. The first benefit is knowing the issue is finally addressed. Second, there is significantly less pressure on the business to absorb the financial hit and remain profitable. Third, your customers will learn your business is serious about getting paid and will ensure your invoices receive prompt processing. Fourth, consistent policies on accounts receivables lower the strain and stress on your staff members. Our recent customer implemented a few of these simple recommendations, and they are now back on track for a reasonably profitable year-end.

How can AAB help me to collect doubtful accounts?

Acting after reading this article is a significant first step. Whether with Account Adjustment Bureau or any other reputable debt collection agency, you are now working on a solution to a long-standing problem. At Account Adjustment Bureau, we examine the collection of your doubtful accounts by going through your documentation, terms and conditions, and general credit granting process to help you plug the holes. Our firm has been helping companies like yours collect doubtful accounts since 1973 and can recommend time-tested procedures and process to help you get control of those slow payers.

Be prepared, however. You may lose one or two FOB or “friends of the boss” accounts, although we are willing to bet those customers are unprofitable for your company. Imagine the relief you and likely the business owner will feel once you don't have to deal with that FOB again.

The path to effective collection of doubtful accounts is straightforward.

Let's talk.

Call or e-mail us today for a confidential conversation. We will let you know if Account Adjustment Bureau can help, or we can refer you to a strategic partner that specializes in the areas of your firm’s process that may be deficient.

If you think that you're ready to deal with those nagging doubtful accounts once and for all, give us a call at 1-866-448-3936 or fill out our contact us page at https://www.accountadjustment.us/contact

E-mail works too. Connect with us at info@accountadjustment.us.

Selection of a Debt Collection Agency in Michigan

 There are many choices when searching for debt collection agency services in Michigan. With so many options, how does one pick the right vendor for you and your business? Before this article considers the various points when searching for a suitable debt collection agency in Michigan, we should clarify that we are referencing business-to-business or b2b credit transactions only. Your business is owed money to another company, and you recognize that the vendor you select must be an expert in this field.

Firms that provide commercial debt collection agency services in Michigan are not required to be licensed. Still, we suggest otherwise. State law requires a licensed agency to maintain a separate clients trust account for clients’ money. The manager must pass a state-mandated examination to qualify for the license. In this article, we stress the word “should” because all the attributes mentioned above are surprisingly not necessary when providing commercial debt collection agency services in Michigan. While not required when running a commercial agency, would you not take more comfort knowing your vendor had the added protections of a licensed agency?

A commercial agreement often contains language that makes the business principal (owner) liable. Clauses that contain personal guarantees, create a joint and several liabilities, or a co-customer agreement, are very common. If the corporate customer (your client) goes out of business, the commercial collection agency service can pursue the business owner for the company’s debt. While there has always been a clear distinction between consumer and commercial transactions, those lines are becoming increasingly blurred through the efforts of the Consumer Financial Protection Bureau (CFPB). Hiring a licensed commercial collection agency services provider in Michigan will ensure you have one more layer of protection against risk to your business.

Additionally, the commercial collection service provider you choose should have access to Michigan’s Secretary of State’s website and be able to search property deeds in all counties across the state. Access to public and paid databases lets your vendor quickly assess your debt recovery potential.

While you may have a favorite commercial collection agency outside of Michigan, a resident Michigan agency will have established relationships with local credit managers, industry groups, and business connections that enable them to investigate your past-due customer and get quick resolution of your receivable. This depth of knowledge of your customer and local market conditions can often help you avoid an unnecessary lawsuit that out-of-state commercial collection agency service providers frequently recommend.

Finally, once you have narrowed down your choices of Michigan-based commercial collection agencies, we recommend selecting the agency that employs collection agents with the Certified Commercial Collector designation awarded by the International Association of Commercial Collectors, an industry-recognized certification program. These professional negotiators maintain standard educational requirements and are considered the elite of their profession.

Common Questions About Landlord Collections

Does the collection agency report my past-due tenants to the credit bureaus? Unlike a collection attorney, a reputable debt collection agency should report your debts to Equifax, Experian, and TransUnion. If you retain a collection attorney directly, they are qualified to do the work but do not report to the credit bureaus. If your tenant moves out of state for work, the chances that your local collection attorney will be successful are meager. 

Will the collection agency attempt to collect my claims before recommending the lawsuit? The short answer at AAB is 100% yes. We would much rather collect the outstanding debt voluntarily from your former tenant. It's faster, less costly to you and the tenant, and helps the tenant re-establish their credit faster.

 

My bad tenants never leave a forwarding address. How does the collection agency find them? At AAB, we subscribe to many information databases and credit bureaus. If your tenant seeks credit elsewhere in the country, they will pop up. If your tenant is not applying for credit, we roll up our sleeves and perform some old-fashioned skip tracing to locate them.

 

Can a collection agency collect if my tenant moves out of state? Unlike most collection attorneys, AAB can perform its work in almost all of the continental United States. If your tenant moves to a state where AAB is not licensed, we can still report to the credit bureaus and perform skip tracing tasks. If your tenant is gainfully employed and their credit rating warrants it, AAB will seek your permission to retain a collection attorney in that state.

 

Your Collection Agency for Indiana Landlord Debts

If you feel AAB will be the best collection agency for your Indiana landlord debts, call us at 1- 866-448-3936. If e-mail is more your speed, send us a note to info@accountadjustment.us or go to our contact us page at HTTPS://www.accountadjustment.us/quote. We'd be happy to discuss your concerns and help you decide if AAB is the right debt collection agency for you.

Landlord Collections in Indiana

Will an agency report my past-due tenants t the credit bureaus?

Will an agency attempt to collect my debts before recommending suit?

 

Many of my bad tenants never leave a forwarding address. How does an agency find them?

 

Can an agency collect if a tenant moves out of state?

 

You might find it surprising that sizeable multi-state property managers in Indiana don't know the answers to the questions above and hire the first collection vendor that pops up on a Bing or Google search. Sometimes the best collection agency for Indiana landlords is not based in Indiana. At AAB, we have been collecting Indiana landlord-tenant debt for almost 40 years and are based in Michigan. Who knew?

 

You have likely heard the benefits of using a collection agency; better recovery percentages, lower legal fees, a higher percentage of locates, and success with out-of-state tenants. Wouldn't it be great if you had more suitable options than what Google might show you? Internet searches typically try to give you what it thinks is the best result by geographic radius from where you're located. Sometimes the best collection agency is not close to you.

 

What are the characteristics that I should be looking for?

AAB has many decades of practical experience collecting debts for Indiana landlords and property managers. Almost our entire business is dedicated to landlord-tenant recovery, and we have perfected the process to provide fast results. We examine our prospective customer’s documentation and processes and make recommendations that may assist them in lessening the financial damages of a bad tenant and recovering more net dollars.

 

Your Collection Agency for Indiana Landlord Debts

If you feel AAB will be the best collection agency for your Indiana landlord debts, call us at 1-866-448-3936. If e-mail is more your speed, send us a note to info@accountadjustment.us or go to our contact us page at HTTPS://www.accountadjustment.us/quote. We'd be happy to discuss your concerns and help you decide if AAB is the right debt collection agency for you.

What Does a Trusted Collection Agency Service in Michigan Look Like?

We can't speak for our industry colleagues, but here is what AAB promises to do (or not do) as your collection agency service provider in Michigan. We will not use outrageous hyperbole to impress you. We won't guarantee your account will get paid. We will not hold onto your money for longer than legally mandated, and we refuse to accept debts from creditors who want to make their customers’ lives miserable.

Getting started with a collection agency service in Michigan should be simple. The agency representative should thoroughly discuss your company, your industry, and the common reasons why your customers can't pay. The agency should ask for a copy of the standard agreement between you and your client so they can educate themselves about the terms and conditions governing the relationship and transaction with your customers. The agency will want to satisfy themselves that the debts are valid. And finally, the agency shouldn't pressure you to use them, especially if they don't have expertise in your industry.

 

Collection Agency Services in Michigan for You

For the last 50 years, AAB has been helping creditors and debtors to resolve their outstanding accounts amicably. If your business needs collection agency services in Michigan, contact us today for a confidential conversation about your specific situation. We will either be able to assist you or make an introduction to one of our strategic partners.

 

If you want to discuss your specific situation or are contemplating making a switch between vendors, call us at 1-866-448-3936 or send an e-mail to info@accountadjustment.us. Should you prefer face-to-face, CLICK HERE to schedule a video meeting. We would be pleased to review your concerns and give you unbiased feedback.

Common Questions When Selecting a Collection Agency Service

Does the Agency Understand My Market?
It's OK if the collection agency service doesn't have extensive experience in your industry. If they don't, they should demonstrate a willingness to learn and articulate their understanding back to you, in their own words, so you know they get it.
 
Will the Collection Agency Service Give Me a Bad Reputation?
Top collection agency service personnel should be professional and not use ANY language that would make you wonder how they will represent your firm. If it seems like they might enjoy giving your customers a hard time about payment, steer clear! There are numerous ways a collection agency service can prompt payment without resorting to questionable tactics.
 
Outlandish Claims of Performance
Beware of providers that make claims like they're the top performing agency. As compared to who? Or “We are the #1 agency in Michigan.” Was there some state-wide contest you missed? In the world of collection agency service providers, our performance depends entirely on your customer's credit quality and their financial capacity when you decide to engage our services.
 
Besides No Recovery-No Fee Pricing, What Are Other Important Considerations?
While pricing is always an essential factor, collection agency providers in Michigan should be capable of reporting your delinquent accounts to the credit bureaus. Did you know collection attorneys can't do this? The knowledge of a potentially poor credit score is often enough to prompt payment. Other considerations should include the appointment of your own service specialist so you can discuss your files with a live body and secure data access to monitor the collection agency services’ progress.
 
Collection Agency Services in Michigan for You
For the last 50 years, AAB has been helping creditors and debtors to resolve their outstanding accounts amicably. If your business needs collection agency services in Michigan, contact us today for a confidential conversation about your specific situation. We will either be able to assist you or make an introduction to one of our strategic partners.
 
If you want to discuss your specific situation or are contemplating making a switch between vendors, call us at 1-866-448-3936 or send an e-mail to info@accountadjustment.us. Should you prefer face-to-face, CLICK HERE to schedule a video meeting.
 
We would be pleased to review your concerns and give you unbiased feedback.

Common Misconceptions about Business Debt Collectors

Our firm has been in the business debt collection industry for nearly four decades. Over that time, we come across various misconceptions about what effective business debt collection looks like from the creditor's perspective. Some of the misconceptions include;

"We only use attorneys"-this is a prevalent option. Attorneys are excellent at obtaining court orders, but you still have to find a way to use the order to get paid. Most business debt collection attorneys are outstanding operators, but you must instruct them on what to do next. Plus, attorneys can't report to the credit bureaus. At AAB, you don't need to give us instructions. We know how to dig for the information required to bring your customer to the negotiation table.

"Would you buy this debt from us?"- AAB is not a debt purchaser. The creditor must have a corporate credit application before anyone would consider buying the receivable. They must also provide proof of delivery, an acknowledgment of the debt by the customer, and the debtor company must be operating as a going concern. Typical business debt collection is not always this straightforward. AAB works on a commission basis and is adept at working through the usual stall tactics to get your claims paid.

"We received a purchase order, did the work, and now they won't pay us" - Unfortunately, the probability of success in business debt collection is directly proportional to the credit quality of your customer. If your firm doesn't thoroughly check the credit quality of your prospective customer, you could be in for a significant loss. Sometimes the potential customer is a worldwide conglomerate with an excellent credit rating, yet you still have the experience of getting paid slowly. At AAB, our business debt collection knowledge helps us quickly navigate these challenges.

 

Trusted Business Debt Collection in Michigan

If your firm is experiencing issues with business debt collection or other issues getting paid, call us at 1-866-448-3936 or fill out our Contact Form. Don't call an expensive law firm - let AAB check the probability of success of your business debt collection issue first. Remember, we only get paid if you do.