Deciding who will manage your past due accounts is always a decision that requires a lot of thought. How will you know if they are the right company for you and your needs? Here are some questions to pose to any potential collection agencies you may consider using:
- What is their success rate?
- How long before they being to work on your case?
- Are there collectors experienced with your industry?
- What kind of bad debts are they able to handle?
- Can the collection agency collect in your state?
- Are they able to skip-trace your debtor?
- If the debt is uncollectable, will they be able to start litigation procedures?
- Does the agency charge a flat fee or work on a contingency basis?
- Does the agency make you sign any long term agreements?
Part of running any business is dealing with checks. If your business will accept checks from customers, here are a few guidelines to help prevent bad checks:
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- Check to make sure the address is printed on the check. A printed phone number on the check is also a plus.
- Ask to see a driver’s license, state issued ID card, or a military ID card. Compare the picture to the person with the card, and make sure the names match from the ID card and the check. Also check to make sure the address is the same on the check as it is on the ID card.
- Write down the ID number and expiration date on the top of the check.
- Make sure the signature from the check matches the signature on the ID card. Make sure they sign the check in your presence.
- Make sure the numerical amount and the written amount are correctly written and match.
- Examine the check number. Make sure the check is numbered. Be extra cautious with checks under 300. These usually indicate new accounts, where the majority of bad checks are written from.
- Watch out for any alterations to the check, such as changes in handwriting or water marks, as this can mean it is a forged check.
- If you are concerned the check may be counterfeit, check the edges. Either the top or left side of the check should be perforated; checks with smooth edges on all sides can indicate a counterfeit check.
- Don’t take two party checks / double endorsed checks.
- Don’t accept predated or postdated checks.
- Don’t accept checks that are for more than amount of purchase.
- Establish a waiting period for refunds. If a customer, who has paid with a check, wishes for a refund make sure the check has cleared before refunding them the money.
- For checks over the internet, make sure the check clears before sending out the merchandise.
- Post your check policy where people can see. Include waiting period for refunds and fees for bad checks.
Remember, you do not have to accept a check as a form of payment.
Commercial Investigations Inc. can help you with collecting any bad checks you might have. These can include, but are not limited to: NSF (Non-Sufficient Funds), closed account, or stopped payment.
Here is a brief guide to helping your own in house collections.
First Step - The first step is to make sure your customer fully understands all transactions. If they are paying at a future date or making scheduled payments, make sure they fully understand due dates and the amount of the payments. Let them know the consequences of late or missing payments. Making sure they understand the obligation they have committed to, as well as the seriousness of the obligation, can help make sure they pay on time. Also, they won’t be able to make excuses along the lines of “I didn’t know” when it comes time to pay the bill.
Set up a Plan of Action - Set up a “plan of action” or a set of guidelines within your company on how to deal with all of your accounts. Set up a policy on how and when you will contact your customer. When is it appropriate to call your customer? When will you send out your invoices? If your customer is late paying, will there be a late fee? Even for non-delinquent accounts, set up a schedule and stick to it. It is also a good idea to keep a record of all dealings with your customers.
Understanding Debtors - There are basically two kinds of debtors: those who can’t pay and those who won’t. Some debtors may come across economic hardship that is making it difficult to pay. Keeping a regular follow up schedule can help make sure they pay once they are able to. Other debtors may refuse to pay. They may dispute the debt or deny all responsibility. These accounts will require much more attention.
Contacting Your Customer - It is a good idea to make sure your invoices are simple and easy to understand. Make sure that your customer will be able to fully understand what they are being charged and why. Blank invoices are provided here.
If phone calls are necessary for payment reminders, make sure you clearly explain to your customer the nature of the past due account and any further consequences non-payment can bring. Do not harass, make threats or false statements. Follow up on any of the consequences you mentioned if they do not pay, make sure they take you seriously.
If your company is unable to collect on a past due account, it may be time to work with a collector.
The longer an account goes un-paid, the harder it is to collect on the account. Many times there are variables out of your control, making it difficult or impossible to collect on a past due account. It can be time consuming and expensive to have un-paid accounts or write them off as a loss. Collection agencies, such as Commercial Investigations Inc., have a wealth of knowledge and techniques at their disposal that will be utilized on your behalf.
Below is a list of reasons why experienced help from a collection agency is needed:
- Debtor ignores repeated invoices and phone calls.
- Debtor has written or continues to write bad checks.
- Debtor makes claims they are not responsible for the debt.
- Debtor debates the amount owed or tries to talk their way out of paying.
- Debtor makes continuous and unfounded complaints about the product or service in order to get out of paying.
- All contact lost with your debtor. Their phone may even be disconnected or mail is returned.
- Debtor moves without notifying you.
Any and all reasons above can indicate that a professional collector is needed in order to see the past due account resolved. Cases such as these take time, which most people simply do not have enough of already. For the more extreme cases, investigation will be needed in order to track down your debtor. Before calling it quits and writing off a past due account, let Commercial Investigations Inc. recover the debt for you.
Commercial Investigations Inc. has the ability and experience in order to track down debtors and do full investigations on their assets. All accounts are placed with people who understand your business and will do anything they can to help you with your past due account.
If you are considering on submitting an account, below is a list of information that will prove helpful in the collection process:
- Correct name of debtor along with any aliases they may go by.
- Debtor’s address and phone number. If your debtor has moved or changed their phone number, Commercial Investigations Inc. will run a thorough skip trace in order to find their new address and/or phone numbers. So even if you don’t have the accurate address or number, Commercial Investigations Inc. will still be able to help.
- Information on when and how the debt occurred. You can simply fax Commercial Investigations Inc. a copy of an invoice or other records that explain the debt.
- Reason for non-payment. This will help us determine the best plan of action. Have they ignored your collections attempts, disputed the debt, or vanished? No matter the reason, Commercial Investigations Inc. will be able to work on your behalf.