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Tips for Successful Debt Collection by Phone and Email that Get Results

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Tips for Successful Debt Collection by Phone and Email that Get Results

Debt collection can be stressful for both the debtor and the debt collector, and it often involves calls and emails that are unpleasant for both parties. However, learning a few best practices can help alleviate stress and make the process smoother. Ultimately, this will lead to successful debt collection!

In this article, our debt collection agency has put together tips for successful debt collection by phone and email. Read on to find out how better communication can help you achieve the desired results.

How to Collect Debt from Customers: Phone Calls

Any debt recovery agency can attest that the most effective way of collecting unpaid debt is by phone. But things can quickly go wrong if the customer is resistant and you end up acting unprofessionally. There are laws protecting customers from possible harassment on your part, so it is in your interest to remain polite and work together to find a solution. Here’s how:

» Have the Facts on Hand

Be prepared for common excuses. You can write a list and include them in your scripts, along with your answers. In addition, have all the facts available, including the amount owed, products purchased, payment due dates, and other open invoices. You will want to be able to answer any excuses and any questions that arise and remind the customer that you are aware of their previous debts and payment history—this way, you can remain in control throughout the conversation.

» Speak Clearly and Professionally

Your tone, pitch, and pace can influence the conversation’s outcome. Take time to practice, and learn to speak slower, make pauses, and smile when you talk. It’s a method collections agencies use to sound confident and warm at the same time. You can even record yourself to listen to areas of improvement. While on the call, don’t chew gum, eat or distract yourself by browsing the web. And don’t forget to use polite phrases like ‘please’ and ‘thank you,’ which will help you come across as professional.

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» Lead the Conversation

Take control by addressing the customer by name throughout the call; it’s respectful and grabs their attention. To get their response, use silence. Silence is uncomfortable, so they’re more inclined to fill it with information. Listen carefully and take notes, which will come in handy in the summary of the call or the follow-up. Most importantly, stay calm and don’t give in to manipulations if it comes to that. Remind them that you’re there to solve their problems.

» Show Some Flexibility

Debt is a stressful situation no one wants to be in. Try to be empathetic and find out more about the situation. Maybe there was an issue with a product or the service; maybe the customer didn’t have money at the time. By showing interest in the root of the problem and expressing that you’re there to find a solution, you’re more likely to get a positive answer than forcing them into a payment plan they cannot commit to. At the same time, be clear that the matter is important and must be resolved promptly.

» Agree on Next Steps

Don’t end the call while things are still up in the air; you must agree on the next steps before you hang up. The customer must commit to a solution, whether payment in full or partial payment. Be sure to summarize the results of the call, including the commitment on their part and the consequences of not meeting your expectations. Set a clear timeframe for when payment is expected, asking them to call on the day the check is mailed. This way, you will know immediately whether your expectations have been met, and you can follow up on the consequences if they do not pay.

How to Collect Debt from Customers: Email

While the phone is considered the most effective method of collecting debt, some customers might respond to email better. Email is also great for sending documents, reminders, and follow-ups. Communication via email is not inherently different from the phone, as you want to remain polite and clear. However, there are a few specifics to be aware of :

» Be Clear and Concise

Customers are unlikely to read long emails, so it’s important to make your point in a clear and concise email. Don’t make jokes or be nonchalant about the situation, as your tone can be difficult to interpret in email. Instead, use polite phrases and let them know how they can reach you to work out a solution. If writing is not your forte, you can use pre written templates and personalize them with the customer’s details.

Debt Collection Tips

» Use a Short Subject Line

The subject line should be factual and clear, so the email is more likely to be opened. Avoid using off-topic “clickbait” subject lines: they may work if they don’t end up in the spam folder, but they don’t give the impression of dealing with a professional.

» Send to Whom it Concerns

Remember that email communication leaves a trail. Once you’ve finished writing the message and are ready to hit send, make sure that there is only one recipient: the customer. Disclosing information to parties against regulation can be grounds for a lawsuit in consumer collections!

Also Read: How to Know When It’s Time to Hire a Debt Collection Agency

Finding a Professional Debt Collection Agency Near Me

The above best practices for phone and email will help you achieve better results in your debt recoveries. However, every customer is different, and few cases follow the same script. Successful debt collection, therefore, often comes down to experience. If you have little success in recovering your debts, it may be worthwhile to involve collection specialists with experience in dealing with various client cases.

Coast to Coast Financial Solutions is a debt collection agency serving multiple industries, helping our clients collect unpaid debt in a professional manner for over 65 years. Coast to Coast Financial Solutions can help you improve your debt collection communication strategies. Call us today at 805.506.8195 or contact us online to learn more about our debt recovery services.

Things to Consider When Dealing with Overdue Invoices for Your Business

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Things to Consider When Dealing with Overdue Invoices for Your Business

Almost 20 years ago, Coast to Coast Financial Solutions Inc. was founded, bringing together 65 years of experience in debt collections by some of the industry’s best professionals. We base our business on the theory that all our clients have unique needs for collections, and cash flow is critical to any business. To that end, we offer customized and seamless strategies to provide each of them maximized recovery.

The size of a business doesn’t matter when it comes to unpaid invoices. It is inconvenient, and it can create a slippery slope if not handled right. A strategy is essential in collecting these invoices, so how can you get unpaid invoices paid without jeopardizing the customer’s relationship with your company? We offer the following tips:

8 Important tips to Deal with Overdue Invoices:

1. E-mail Reminders

Everyone is busy and on the go, but e-mail is something we all still have access to from our mobile devices. Send e-mail reminders about unpaid invoices, including details how past due and breakdown of the invoice amount and late fees and interest. Set your system up for automatic reminders after 30 days as gentle reminders. Reminders can help ensure payments are timely.

2. Require Advance Payment

Advance payment isn’t unusual for businesses today, especially if you’re going to be out of money upfront to fulfill the order. You can demand a percentage of the total payment upfront. Prepayment can assure that overdue invoices are a thing of the past. The advance payments and credits are straightforward to manage with the online invoicing portal’s credit management feature.

3. Keep Positive

Keep a confident and positive attitude while dealing with the client. Letting them know you are concerned about your payments isn’t going to help. Ensure they can’t give you any reason for a longer delay in payment, keeping a confident tone with the client about getting paid.

4. Monthly Statement

Send monthly statements to clients with unpaid invoices. Monthly statements will ensure that your clients see the open invoices, with the original date, amount, and late fees and interest.

Monthly Statement

5. Follow Up with a Phone Call

To keep a positive relationship with your clients, make a follow-up phone call after ten days if you haven’t received a payment or they haven’t researched out to you. A friendly follow-up chat can explain why they haven’t paid the invoice yet and reaffirms that the matter is a priority.

6. Know When Escalation Is Needed

Remember that not all clients are alike in their personalities. Every client runs their business differently and makes payments on a different schedule. Knowing this will give you the knowledge of how to handle past due invoices. Clients pay invoices at different times. They may pay 30 days from the date of invoice, every 30 days by calendar dates, some pay invoices every 45 days.

When you know their schedule for paying invoices, you can send a reminder five days ahead of their schedule. Knowing your clients better can eliminate unnecessary pressure on your clients and not strain your relationship. If they are continuously late with payments, you may need to adopt a more conscientious strategy.

7. Refer to Your Staff

When your routine invoicing, statements, payment follow-ups, and reminders aren’t working, you can delegate the task to the account manager. Keeping an account current is essential to the company representative as it is the company itself, so having them contact the client may is a smoother contact.

8. Charge Interest on Overdue Invoices

We’ve mentioned it a few times already: late fees and interest. When a client is consistently late paying invoices, charging late fees and interest can be an eye-opener for many clients, especially if the past due invoice is about to turn into a legal matter. Consider the relationship you have with the client before pursuing this and discuss it with the account manager.

About Coast to Coast Financial Solutions Inc

No matter what size your business is, past-due invoices can be daunting. How you choose to handle the matter can make a client relationship stronger or can damage it. Choosing an experienced and reputable agency like Coast to Coast Financial Solutions Inc will assure you that your clients will be treated with the utmost respect. We follow all legal methods and will always have a seasoned agent assigned to your account.

Hire Coast to Coast Financial Solutions
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805.506.8195

Successful Speed up Debt Collections Strategies in 2021

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Successful Speed up Debt Collections Strategies in 2021

Critical to revenue growth, debt collection will be a top priority for most organizations. However, recovering bad debts remains a serious concern among collectors for two significant reasons:

  • Debt collection practices are strictly regulated.
  • States and the federal government have imposed restrictions on debt recovery to protect citizens from the harsh economic realities of COVID-19.

So, how do you maximize your debt recoveries amid these threats? As a reputed debt collection agency, experts at Coast to Coast Financial Solutions in this post have got you covered with successful debt collection strategies for 2021. Techniques that will not only improve your cash flow but also save you incredible time and money. With that in mind, let us dive in.

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2021 Successful Debt Collections Strategies:

» Segment Your Customers

At the core of a successful business, the decision is useful data. In debt collection, it is about having the right information about your customers and segmenting them based on vital parameters like the debt owed, industry sector, repayment date, disposable income, the reason for delinquency, etc. Segregation helps you determine top-priority customers and methods to approach the different customers to ensure your debt collection strategy success.

However, it is essential to understand that we are still recovering from the harsh bites of the COVID-19 pandemic, and customers are defaulting payments for uncommon reasons. As such, you will need to dig deeper into collections, communications, and call systems to compile useful information that will enable you to distinguish steady-state customers from economic victims.

Your collector will be required to organize numerous pieces of information from multiple sources. To ease the process and save time, invest in a collection CRM which can integrate with several information sources. These sources include credit reporting organizations (Think Experian, Equifax, and Transunion), social profiles, and third-party applications (Think collection software, Telephony services, and interactive Voice Response systems).

Professional Debt Collections

» Work with a Collection Plan

Another way to speed up debt collections in 2021 is by working with a custom collection strategy that works for you and your customers.

For instance, you can call seven days before the due date to confirm whether the customer received your goods/services, has no disputes, and when they plan to pay. Contact the customer within a week after the due date to know why they delayed payment and get the customer to commit to a payment plan. Do not hesitate to call again if the debtor fails to honor their payment promise. Else, outsource the delinquent account to a reputable commercial collection agency.

When following up on large balances, you will want to avoid using letters, faxes, and emails because customers can easily ignore them. Letters may not reach your target destinations. For this reason, always make a phone call.

If you struggle to stay on a collection schedule, collection specialists at Coast to Coast Financial Solutions can build and implement a strategy customized to your business. Call us today at 805.506.8195 for a debt recovery plan that increases your cash flow and maintains positive relationships between you and your customers.

» Get Your Collection Calls Right

Collection calls can feel uneasy. So avoid rushing into the collection mode, and instead start with small talk to make your customer comfortable. Next, ask about the payment, stating all necessary information such as the amount due, invoice number, invoice date, etc.

Get Your Collection Calls Right

Practice to stop and listen during the conversation. Doing so helps you gain a clear insight into the customer’s financial situation and know whether they forgot or are aware of the balance.
Always record the conversation to prevent your customers from disputing payment commitments. Reminding them their exact promise puts them on the spot much more than a vague recollection of your previous conversation.

» Motivate Your Customers to Make Payments

In 2021, we expect collections to incredibly shift from consequence-based approaches towards client satisfaction approaches. This helps spur positive payment behaviors.

Train your collection team on communication and dispute resolution best practices. You will also want to know your clients’ communication preferences to send them the right messages using the right channels.

Additionally, offer a range of standard payment options. And use invoices that make it easy for customers to remit and keep records of the payments. Ensure your invoices include all the necessary details, including:

  • Your remittance address and contact information
  • Your Tax ID Number or Employer Identification Number(EIN)
  • Purchase order number (if available)
  • Invoice date and serial number
  • Vivid descriptions of the products/services
  • Total amount due
  • Specific payment due date (avoid general phrases like “payment due within 30 days”)
  • Payment terms
  • Tax payments

» Analyze and Optimize Your Collections Operations

Data-backed insights into collection strategy efficiency, customers, and team performance are central to any collection settlement campaign’s success. This is because the performance reports help you and your team evaluate the return on investment (ROI) and make informed decisions to optimize results.

Some of the metrics to focus on include debts collected, non-responsive debtors, customers who intend to pay, ongoing debt recovery activities, and the average time needed for debt recovery.

The Bottom Line

Making sales is every business owner’s dream. But it is often frustrating when cash is not collected. In this light, leverage the above debt collection strategies for 2021 to finalize your sales efficiently and sooner.

Do you need help with debt collection? Coast to Coast Financial Solutions can help with hassle-free, time-sensitive debt recovery strategies built to your business needs and geared to maximize your debt recoveries at the lowest cost possible. Call us today at 805.506.8195 or fill in our online form to learn more about our services and how they can transform your cash flow.

Successful Commercial Collections Strategy That Keeps Your Accounts Profitable

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Successful Commercial Collections Strategy That Keeps Your Accounts Profitable

Business debt is among the most prevalent challenges for small business owners. They often deal with delayed and missed payments and the need to recover debts to keep your business afloat.

Commercial debtors fall into categories:

  • A debtor that is willing to pay but cannot due to real financial struggles
  • A debtor who willingly delays payments
  • Debtors willing to go any lengths to avoid making payments.

Regardless of the type of debtor you are facing, commercial debt recovery can help your clients solve delinquency without hurting your relationship.

Also known as business-to-business/B2B debt collection, commercial debt recovery is the process of collecting debt from one business on behalf of another company. Rather than spending valuable time tracking delinquent accounts, businesses often turn to commercial debt recovery agencies to ensure quick bill payment and recovery of all arrears.

Debt collection firms are neither involved in the contract between the debtor and creditor nor emotionally wrapped around the payment delays. This enables them to offer various solutions and handle collections firmly and directly without harassing the debtors. But it is the creditors’ best interest to partner with licensed debt recovery firms that operate within the borders of legal and ethical debt collection.

Following Successful Commercial Collections Strategies including:

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How Commercial Debt Collection Works

A business owes another company compensation immediately after receiving the ordered goods or services. The creditor sends an invoice that may include terms for payment distribution. Whereas the creditor has the right to collect the compensation owed, it is not always a smooth path.

If payment is due, you may attempt to engage your debtors into arriving at an amicable solution before outsourcing their accounts to a debt recovery agency. Note that debt collection is not just about collecting money from clients who delay payment schedules. When handled professionally, debt recovery offers an incredible opportunity to build better business-client relationships and recover debts without costly litigations.

A commercial debt recovery agency earns money only when the debtor makes payments and are required to follow a legal and ethical collection process.

Commercial Debt Recovery Process

The economic uncertainty caused by the COVID-19 pandemic has incredibly limited bank loan accessibility. It, therefore, comes as no surprise that the demand for trade credit is exceptionally high. But businesses are becoming a bit hard on vendors as credit strictness and money scarcity haunt their efforts to maintain positive cash flow. Slow, partial, or missed payments increase the carrying cost and strain the cash flow. As such, commercial debt recovery is turning into a top priority for most businesses. Read on to learn a tested, 5-step debt collection strategy you can leverage to keep cash flowing into your company.

Commercial Debt Recovery Process

The Debt Recovery Process That Enhances Profitable Cash Inflow

» Draft a Credit Policy

Outlining credit and payment terms and establishing a straightforward course of action for delinquent accounts, a credit policy should be an integral part of your monetary policy and overall risk-management strategy. It helps you retain profitable customers while avoiding the problematic ones.

A standard credit policy does not exist-your guidelines will be grounded on your cash-flow circumstances, degree of risk involved, and the prevailing economic conditions. When creating your credit guidelines, carefully examine the link between sales and credit. Whereas easy credit terms can significantly boost your sales, they can threaten your financial health when clients default. A professional can help you eliminate common credit policy loopholes.

You will want to monitor the customer’s credit behavior and qualify each account annually to ensure you only deal with profitable customers.

» Get Everybody On Board

Get everyone in your organization involved in your monetary and risk-management strategies. It starts with making your staff and partners understand that putting money in your company’s account is the main goal for each sale activity. Secondly, follow your policy, and be quick to communicate when you notice actions that violate the policy terms.

» Bill Quickly

An invoice is a fundamental cash flow tool. Strive to send an invoice as soon as you deliver services and goods to your clients. You want to ensure the invoice payments are made to the right account. Therefore, provide a “Remit To” address on your invoices to let debtors know precisely where to send payments.

The “Terms of Sale” section should highlight the specific due date rather than the general Net 30, often subject to misinterpretation. Regardless of your business’s size, apply net 15 payment terms to new customers until they pay at least three invoices in full and on time.

Spell out your payment discount offers in easy-to-understand English. For instance, avoid writing “a 3% discount if paid with thirty days”. Instead, say, “deduct $950 if paid by June 2nd.”
Include a name and address to contact for invoice issues and disputes to seal some loopholes often harnessed by debtors looking to stall payments.

» Use Effective Phone Scripts and Collection Letter Templates

Another secret to successful debt recovery is using collection letters and phone scripts time-tested and proven for effectiveness.

There are two types of letters you can leverage: situational and mainstream. Mainstream letters include first collection letters, final demand letters, and IRS advantage letters. Making up the situational letters are the wrong check letter and debtor examination letter.

Before using call scripts to follow up on unpaid invoices, it is best to prepare yourself mentally. Asking for payments can put your customer in an awkward position. Therefore, they may struggle to justify the unjustifiable, nullifying the call’s objectives. Prevent the conversation from spiraling into an emotional, aggressive, or personal quest by dealing with facts and maintaining a sense of polite professionalism.

» Don’t Wait for Longer.

Understandably, you want to optimize debt payments and may be tempted to give debtors more time to settle unpaid invoices. However, by waiting longer, you increase your odds of bad debt when delinquent accounts become partially or totally uncollectable. Instead, add more steps to your debt recovery process to maximize invoice payments.

How Can Our Debt Recovery Agency Help Your Business?

Whether you own a small, medium, or a large business, you can partner with Coast to Coast Financial Solutions to keep cash streaming into your accounts. Cognizant that debt collection is among the most unpleasant tasks for business owners, we bring to the table experienced experts committed to achieving fantastic results for your organization.

Our B2B firm boasts the capacity and expertise to collect your debts even in the nastiest scenarios while maintaining positive relationships between you and your clients. With the unmatched motivation to improve your business, we are your go-to partner for commercial debt recovery in Southern California neighborhoods. Including Los Angeles, Ventura, Simi Valley, Westlake Village, Calabasas, Thousand Oaks, Woodland Hills, and more.

#1 Debt Recovery Agency Help Your Business

Our Commercial Debt Collection Strategy During COVID-19

The unpredictability of the COVID-19 pandemic strains experts’ ability to predict precisely how it will affect the US economy. And as the epidemic continues to subject businesses to uncertainties and extraordinary circumstances, debt recovery experts at C2CFI remain committed to serving Southern California businesses throughout this uncertain period.

You will certainly love to work with experts dedicated to helping, advising, and guiding you towards optimal debt recovery for your business. Reach us via 805.506.8195 or message us online to get the best commercial debt solutions in Southern California.

Finding the Right Collections Agency for Your Pest Control Business

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Finding the Right Collections Agency for Your Pest Control Business

If you are running a pest control business, you may need to hire a collection agency today. There is no denying that the pest control industry is becoming competitive by the year. Recruiting a collection agency for your accounts receivable can help you focus on your core business and protect against potential lawsuits.

Although a large percentage of pest control companies past due accounts comprise residential customers, it is common for commercial business to business customers to fall past the scheduled period. Not only is making collections from past due accounts frustrating, your pest control company may not have the experience and tools to collect debts from the past-due account can be challenging without the tools and techniques.

Let’s see how you can take care of Pest Control Collection by hiring a collection agency.

Pest Control Collection by Hiring a Collection Agency

Hire Coast to Coast Financial Solutions
for Pest Control Collections

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What Does a Collection Agency do for Pest Control Collections?

No matter how many times you call the debtor or send invoices, getting the payment is not as easy as it seems. After your failed attempts at collecting the debt, one of the few options you are left with includes joining a debt collection agency.

Since an average pest control company may not have the required resources to collect on past due accounts, getting in touch with a collection agency with all the right resources and tools for collecting your debt is the best option. These companies locate the debtor making your past customers realize that they must pay off their debt, or they will have to face the consequences eventually.

The agency is also better equipped to secure the payment over the phone. Since these companies negotiate with debtors, every day, over the phone, they have special software to make notes on the debtor account. These companies can take payments quickly and have a successful history of collecting past due amounts.

Benefits of Partnering with a Debt Collection Agency

Benefits of Partnering with a Debt Collection Agency

Improved Productivity

Running a business is not easy. You have to take care of customer service, operations, marketing, and all aspects of your business, which means that you won’t have enough time dealing with past customers who owe you money.

When you hire a collection agency, you can focus on improving your company performance without worrying about who will take care of your debtors. That means you can grow your pest control business and leave the debt collection part to the experts. You don’t have to spend your valuable time making phone calls to your debtors and can use it to attract potential clients.

Dealing with Legal Issues

Hiring a professional debt collection agency helps you avoid legal complications so you can sleep at night without worrying about legal matters. You know that you are represented by a company that can collect debt effectively and is familiar with FDCPA.

Affordable Services

Many collection agencies collect the debt on a contingency basis, which means they will charge a percentage of the money you have collected. This eliminates the risk for your company since you only pay for results. When the collection agency cannot collect any payments, you don’t have to pay them any amount. Such an arrangement puts an extra emphasis on the results. The collection agency you choose does everything in its power to collect as much money as possible.

Join Hands with Coast to Coast Financial Solutions for Pest Control Debt Collection

Working with a debt collection agency with years of experience collecting debt in the pest control industry guarantees successful results. Coast to Coast Financial Solutions is a full-service debt collection agency that serves the U.S. from coast to coast.

Our trained staff makes debt collection easy, and we are familiar with the ‘Fair Debt Collection Practices Act (FDCPA) that offers complete protection while you try to recover your own money. Collection agencies perform a ‘lighthouse individual’ check to take a different approach when collecting from high-risk defaulters who seek excuses to file a counter lawsuit.

When it comes to debt collections procedures, business owners always want to use the right resources to recover the full amount. Since all these matters have to do with money, you need expert negotiators who can contact debtors and convince them to pay off their debt. From making telephone calls to creating customized debt-recovery strategies, we take care of everything.

Also Read: Debt Collection Strategies When Customers Slow-to-Pay or Don’t Pay!

Our Pest Control Debt Collection Services Include:

  • Bad Debt Contingency Collection Programs
  • Extended Business Office Programs
  • Revenue Cycle Management Consulting and Training
  • Legal Collections and Litigation
  • Clean Up and Skip Tracing Projects

Contact us

Coast to Coast Financial Solutions employ the most in-depth technological resources to deliver the best results possible. If you want to know more about how your pest control business can benefit from a debt collection agency, don’t hesitate to contact us today. We serve a variety of industries, including pest control. Our experience allows us to offer a customized solution to every client, so they can focus on expanding their business, without worrying about debt collection.

So what you are waiting for? Hire the best debt collection agency in southern California- Coast to Coast financial solutions. Call us today at 805.506.8195.

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