Tag Archives: C2C Resources

Guide to Collection Letters

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What you need to know about writing good collection letters

LetterAt C2C Resources, we like to provide information not only to our existing 25,000+ customers but also to would-be customers, to help them improve their in-house collection processes.

For us, we see the long-term value and trust that’s built by helping businesses build strategies that work, thus minimizing the need to use a commercial collection agency like ourselves.

Our strategy is simple: trust builds long lasting, mutually beneficial business relationships. We’ll show you how to collect in-house with strategies that provide results – you’ll come to us for handling cases that need the touch of professional collectors.

One tool we provide at no cost is our Guide To Collection Letters eBook. It’s a free download, no strings attached. It’s our gift to you in the hopes that, if you need a third-party commercial collection agency, you’ll think of C2C Resources first.

Download your copy right now to get started writing collection letters that get results!

What Makes a Good Debt Collector?

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Businesswoman making a call - C2C ResourcesAs a business owner, your collection call team will lead you to increasing cash flow. But is a good debt collector born with “it” or taught “it”? For small businesses and start-ups, finding the right person on the team is particularly important because often team members wear multiple hats; only needing to step into the role when needed.

We think the right person has a combination of the right personality traits and proper training. Don’t always go for the sales person or accounts receivable person on the team. While they may be directly related to the process, they may not have the personality needed to deal with potentially intense situations.

 

When considering a team member, look for the following traits:

-          Problem-solver: Often driven to find a solution, the problem solver is going to approach the situation with unique ideas. They will be results driven, even if the debtor becomes upset during the process.

-          Self-motivator: Getting on a call is nerve-wracking because the debt collector does not always know how the debtor will react. By having someone with a keen sense of self-motivation, they will be driven to get the work done.

-          Tenacity: If a debtor is persistent with providing reasons as to why they cannot pay, the collector will need to be just as persistent to make sure that the call ends with an action item of next steps in the payment process.

 

And, provide the following training:

-          Selling: The debt collector on your team needs to be able to prove to the debtor that they must pay. This is very similar to a salesperson’s role. By providing the team member with proven tactics you can prepare them for the most challenging calls.

-          Customer Service: While it may be a good idea to pick the most tenacious person on the team, they also need to have good customer service skills. Being too controlling during the situation could turn the customer off and lead to no payment. The ideal candidate would have a good balance.

Finding the right person on your team to handle debt collection calls goes beyond the ability to pleasantly interact with customers. It requires a combination of skills to be effective.

Do you have the right person for the job on your team?

Easy In-House Debt Collection

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Are your in-house debt collection procedures streamlined?

Do you have a process to follow that helps keep your past due accounts to a minimum? If your in-house debt collection policies could you some fine-tuning, C2C Resources can help.

It’s not uncommon for the task of debt collections to be neglected in a business. For one thing, it’s not pleasant to make a collection call so calls often get put on the back burner. However, if you have the right tools at your disposal for making calls and sending notices, the task of managing your Accounts Receivables can be less painful and considerably more effective.

Debt Collection, C2C ResourcesC2C Resources can help you manage collections in-house with its powerful Accounts Receivables management software system. Profit Maximizer is designed to help businesses keep track of the details throughout the debt collection process. It provides Contact Management, a detailed Reporting System, call scripts and collection notices that you can easily adapt for your needs. Simply fill in the blanks on the template and hit ‘send’.

You can also sync with Quickbooks and input Excel spreadsheets with the click of a button.

As a partner, we provide our clients with everything they will need to manage accounts receivables in-house through our Profit Maximizer program. And there’s no extra cost to use this web-based program! When you partner with us, Profit Maximizer is yours and we offer support as you learn the system.

Experience the difference with Profit Maximizer! Check it out at C2C Resources.

 

Why Do Some Collection Agencies Charge More?

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Dollar sign, Collection Agencies, C2C ResourcesCollection Agencies do not all operate in the same way

We all like a good deal. We love to save money. So, while it’s tempting to choose a Collection Agency charges you less, it’s the net recovery rate that really matters.

Licensing
There are some key factors that drive the rates a collection agency charges. For instance, it costs time and money for an agency to obtain the proper licensing. Since licensing protects you and your business, it’s worth it to pay more.

Collectors and caseload
You’ll also pay more to partner with an agency that uses only experienced collectors. High caliber collectors will cost a little more but you’ll enjoy the benefits of a higher rate of collection. Savvy collection agencies will carefully restrict a collector’s caseload, too. By doing so, all cases, large or small, received the attention they deserve. This strategy requires that an agency hire more collectors and possibly charge a higher rate, but fewer accounts are turned over to legal.

Remittance
Some collection agencies that charge less do so because they only remit monthly. They hold onto your money and collect interest on it while saving themselves the expense of weekly remittance. Agencies that remit weekly may cost more but you get your money much more quickly.

Information
Collection agencies that invest in the personnel and technology needed to keep you in the loop on your account will also cost more to partner with. The type of software required to make your information available to you has a price tag.

When looking for the right agency, ask the right questions so you understand their rates. Are they licensed? Are their collectors experienced? How do they manage small balance accounts verses large ones? Do they remit monthly? Weekly? How many collectors touch each account? What are their communication policies? Do you have access to your information when you want it and need it?

You’ll pay more for the qualities that put an agency a cut above.

 

Is Your Commercial Collection Agency Licensed?

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How can you know for sure that you collection agency is a quality company? Ask if they are licensed!

Not all Collection Agencies are created equal. There are many top-notch agencies all over the country and a whole bunch of sub-standard ones. A quality collection agency will obtain a license to do business if their state requires it.

US Map, C2C Resources Debt Collection AgencyOver 20 states do require commercial collection agencies to be licensed. Oddly enough, many agencies ignore the law!

The issue of licensing should be top of mind when choosing a commercial collection agency. The reasons are simple:

1. It’s the law.
The laws vary from state to state but some requirements may include: registration and testing of agency personnel, audit of collection procedures and letters, agency bonds, and most importantly trust procedures and audits to make sure that your money is safe.

2. Your reputation can be affected.
In your customer’s eyes, your collection agency becomes an extension of you. You want collectors to represent you in the most professional, ethical way possible. A licensed collection agency is held to a high standard and will take pride in how they do business.

3. You may be liable.
A Collection Agency that does not adhere to the laws can be a liability. Your debtor could sue you both based on the actions of your Collection Agency. A licensed agency will operate within the laws in the effort to collect on your behalf.

A Collection Agency that is licensed can provide a copy of their state issued certificate easily and what’s more, they’ll be proud to do so! If they can’t, ask them what the requirements are for the state in which you are doing business. Any collection agency that cannot answer that question isn’t the one for you. Keep shopping!

Protect yourself and your business by choosing a collection agency that is licensed.

 

Be the Creditor that Stands Out So You Can Get Paid

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As a creditor, you must stand out from all the other ones in order to be the one who gets paid!

Businessman, Creditor, C2C ResourcesWhen you call your past due customer, it’s quite likely that yours is not the only collection call he’s taken that day. In fact, he may be staring at a stack of bills an inch thick while on the phone with another creditor right now!

Why should he choose to pay YOU over all the other creditors he’s dealing with?

Because you have an edge! You know how to keep your cool as you dig beyond your customer’s claim of a cash flow problem. You’re a creditor, so you know the importance of listening to your customer’s story and the importance of verifying his claims. AND you know how helpful his Merchant Statements can be in spotting downward trends in sales.

Fact is, most of his other creditors aren’t listening patiently or validating any claims. And they certainly aren’t offering truly helpful suggestions for solving the debt. They’re loosing their cool instead. And every creditor that looses it get’s his invoice shoved to the bottom of the pile.

You have a greater chance of being the one creditor who gets paid by remaining professional in every engagement with your customer. He’ll take you more seriously when he sees you’ve done your homework. And when he realizes that you know he can pay his debt to you, he’s more likely to do so, especially when you’re flexible about how and when the bill will be paid.

The bottom line is, your customer can’t pay every past due invoice he owes to every single creditor, but he probably can pay yours. Make him pick you over the all those other creditors by patiently listening to his story, validating his claims and returning to him armed with information. You may be the one creditor who is willing to work out a plan without yelling and screaming. If so, he’s likely to pay you first.

 

In Commercial Debt Collection, Should You Take a Settlement?

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When collecting a commercial debt, the decision whether or not to take a settlement comes down to one thing …

Hand shake, Commercial Debt, C2C Resources

In Commercial Debt Collection, sometimes a settlement is the right choice.

If it’s likely that your customer will be unable to honor an extended payment plan. To know for sure, you must find out the facts of your customer’s financial situation.

Start with a lengthy and detailed conversation with your customer. Listen intently to his explanation and take detailed notes.

While you’re on the phone, request that he send you his last 6 months worth of Merchant Statements. Once you have all the information you can get from him, take the following steps:

• Review his Merchant Statements to spot downward trends in credit card sales. Are they up or down?
• Verify the claims he’s made by contacting his other creditors. Did he tell them what he told you?
• Talk to your customer’s bank. Would a check clear if he were to issue one?

The information you gather may lead you to conclude that your customer really has no money (or too limited an amount) to pay you. If it looks to you like things are likely to continue to deteriorate, then taking a lesser amount now is better than being paid nothing later. It’s but one of the challenges of commercial debt collection.

It takes patience to do the investigative work to make the settlement decision in the process of commercial debt collection. But it’s the only way to make an informed choice.

How To Write a Great Collection Letter in 8 Steps

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When you sit down to write a debt collection letter, do you find yourself frozen at the keyboard, unable to find the right words?

You may know exactly what it is that you want to say but, for whatever reason, when it comes time to actually write the letter, you struggle to get the words on paper.

Writing a great collection letter is tough, even for good communicators. Frustrations about the past due invoice and the pressing financial stresses that it has caused can get in the way of writing a letter that’s fair. While frustrations and emotions can be a hindrance, it’s possible to rise above and write an effective letter. Try using the following 8 steps to create a collection notice template to use over and over.

1. Limit your letter to one page using short sentences and brief paragraphs.
Don’t feel the need to explain why you need to be paid. You provided a service or goods and your client agreed TO pay. That’s the bottom line.

2. Label the envelope personal or confidential.
This helps to route the letter to the person responsible for the invoice in question.

3. Sign the letter personally.
The fact that you tended to the matter personally adds a level of urgency for the reader.

4. Avoid any wording that could be misunderstood as insulting, intimidating or threatening.
Professionalism through courtesy and respect is always the right path to choose.

5. Don’t apologize.
Any issues regarding your services or goods should have been brought to your attention by your customer long before he or she received a collection notice.

6. Make details clear and paying EASY.
The amount due, your contact information, any reference numbers, your address, phone number, fax number and any other pertinent information should be clearly stated. Include the details for the easiest way to pay you.

7. Be positive.
It’s quite possible that the past due invoice is an oversight and it’s a good idea to treat your first collection notice as if that’s the case.

8. Be firm.
State what you expect: Payment.

Your primary goal is to get paid. Your secondary goal is to retain a quality customer. If you can work WITH her to resolve a debt and thereby maintain good will, that’s even better!