In order to have the largest recovery businesses need to have a clear internal debt collection policy. All of your employees and staff should have a clear understanding of what the debt collection policy is and what steps need to be taken. An important part of your debt collection policy is the terms of payment. Both the customers and the employees should have a clear understanding of the terms of payment. The terms of payment should be clearly written on the invoice, customer application or agreement. The payment agreement should include when payment is due, consequences for late payment including late fees, finance charges or collection costs if turned over to a collection agency. Whatever your terms of payment are make sure the customer understands these terms at the beginning of the relationship so there are not issues later on. In addition to having clear terms of payment, the employees should know all of the steps including in the internal collection process. Some of these include when to mail out statements, invoices, reminder letters, telephone calls and when the account will be placed over to a collection agency.
An important step in your internal debt collections is turning an account over to a collection agency that you have had no luck collecting on. The question is when to turn the account over to a collection agency. How long should you try to collect on the account internally? The rule of thumb is to turn an account over to a collection agency after 60-90 days past due. If you are having difficulty collecting on your past due accounts send them over to a collection agency. You can stop wasting your time and your employees time and let the trained professionals work on the accounts. Collection agencies can be an important tool for a business saving them time, money and frustration.
Another option is to hire a debt collection attorney. Although collection agencies collection process consists of demand letters, phone calls and credit reporting, a debt collection attorney has more legal tools available to them. Debt collection attorneys can file suit against a debtor, file a judgment and/or wage garnishments. Debt collection attorneys cost a lot more than a collection agency so you want to be sure it would be worth it to hire a debt collection attorney.
Having internal debt collection processes, hiring a collection agency and hiring a debt collection can increase your chances of collecting on delinquent accounts. Whatever combination of collection processes you decide to use, make sure it has the most benefits for your business.
"Medical collection is just one of the verticals for which we provide service. For more information about our other consumer and commercial collections programs please visit us at www.nationalmanagement.net."