If you often encounter overdue accounts or slow payers, it may have a negative impact on the business. Even if you keep a strict credit check on the credit standards of your clients, it may happen to you.

That is to say, nonpayment issues are common when it comes to collecting a debt. Pay collection might have become a constant problem for your business. In that case, maybe it is time you should consider hiring a debt collection agency. The longer you take to make this decision, the more you have to wait for the due payments.

Still unsure why and when you should contact a debt recovery agency? Keep reading to find everything you need to know about hiring a debt collector.

What is a Debt Collection Agency?

A debt collection agency or debt collector refers to professionals who help you collect debts or due payments as a part of a job. Some companies or businesses purchase past–due debts from different creditors and then collect them. Debt collectors go by many names, such as Collection companies, debt buyers, and debt collection agencies.

When Should You Hire a Debt Collection Agency?

If you don’t know when you should hire a debt collection agency, follow the given tips.

» Locating the Customer is Difficult

If your customer has given you an incorrect address or phone number, tracing him or her is a daunting task. However, debt collectors can help you solve that problem. The professionals have a wealth of experience in tracking down debtors. They receive professional training when it comes to finding non-paying clients. Also, they have the right tools that assist them in the tracking process.

» The Debt is Two Months Past Due

If it has been more than two months since your debtor has paid you, it is perhaps time to seek the assistance of a debt recovery agency. Note that a debt collector doesn’t guarantee you will retrieve the funds in time.

However, in-house business operations have even fewer chances of success. Thankfully, debt collectors may be able to recover the money owed to you in ninety days or beyond.

» Checks of Customers have Bounced

There is nothing more frustrating than receiving a bounced check from customers. The situation worsens if the customer gives you multiple payment checks. It is a clear indication that your customer has no intention to pay you.

If it happens to you more than once, it is better not to take more risks and contact a debt collection agency. The debt collectors know how to deal with these clients and what steps are right to take the money back.

» Lots of Stalling Customers

Customers who keep you hanging are trickier to handle. Many clients put off service representatives when it is time to pay. Most of them have no intention to pay. If the customers don’t return your calls or avoid discussing the due payments, you need the help of a debt collection agency.

Also Read: Finding the Right Collections Agency for Your Pest Control Business

Benefits of Hiring a Debt Collection Agency

Typically, many startups and small businesses don’t have sufficient time to locate, trace, and call customers who have past-due invoices. Large businesses or companies, on the other hand, operate through an internal collection unit to mitigate these issues. Most often, debt collection becomes ineffective and overwhelming.

Here are some benefits of seeking the services of a debt recovery agency.

» Documentation

If you have no experience in handling documentation involved in contacting and tracking down debtors, tracking down payments can be difficult. Keep in mind that if you decide to sue the debtors to recover funds, you need proper paperwork to collect the money. A debt collection agency prepares records and documents for the entire process according to IRS requirements.

» Legal Protection

If you’re not familiar with laws like Debt Collection Act, it is better to rely on the expertise of a debt recovery service. The trained and certified professionals act as collectors who understand state and federal laws associated with collection practices. They can handle your business accounts without legal implications.

» Faster Payment

Note that people or customers who owe you money pay faster if a debt collector approaches them.

People pay faster because they know that if they avoid payments, it may affect their credit scores. They respond immediately to save their credit ratings.

What to Look for When Hiring a Debt Collection Agency?

» Return on Investment

Consider hiring a debt collector who has the expertise to collect the money faster and more efficiently.

» Excellent and Reliable Customer Service

The field of debt collectors has many companies with bad reputations. That is why you must review the customer services of the debt collection agency thoroughly before hiring. You need the services that can create an individualized payment plan for you and accept different payment methods.

» Referrals and Reviews

Read the reviews online or talk to the people who have used the services of the debt recovery agency you want to hire. The online reviews of organizations like the Better Business Bureau and the Chamber of Commerce are important to consider.

Summing Up

Selecting a debt collection agency can be a challenging task if you don’t know when to hire. This article helps you consider if you need the assistance of professional debt collectors such as Coast to Coast Financial Solutions.

Are you trying to avoid making calls to your client for debt collection? Do you fear an interruption in operational cash flow due to high account receivables? Do you foresee a possible cash flow choke due to delays in debtor payments?

These vital questions highlight the significance of early debt collection. However, many businesses fail to utilize effective debt collection tips to ensure a healthy cash flow. Therefore, in such scenarios, it is necessary to take help from a successful debt collections agency. But how do you choose the best debt collection agency to help you with your specific needs? Here are five effective tips that can help you make the right decision.

What is the Ideal Time to Hire a Debt Collections Agency?

When should you get support from a debt collections agency? Well, it depends on the age, amount, and volatility of your outstanding business debts. Surely, delayed payments can cause major business losses in terms of revenue.

With additional costs to provide products and services, you rely on the payment you receive from your previous orders. Thus, any debt that goes beyond the age criteria of 60-90 or 90-120 days requires you to take the help of professional debt collectors.

Why Hire Coast to Coast Financial Solutions?

Coast to Coast Financial Solutions ranks among the top professional and highly experienced debt collection services providers in Thousand Oaks, CA. In addition to our professionalism, knowledge, and expertise, we possess experience of over 65 years in debt collection for other businesses.

We are a private company with various accreditations. Our services reflect high compliance with the debt collection industry’s policies. Additionally, our service policies comply with federal laws, including:

• Health Insurance Portability & Accountability Act (HIPAA)
• Fair Credit Reporting Act (FCRA)
• Fair Debt Collection Practices Act (FDCPA)

Further, Coast to Coast Financial Solutions boasts an experience of nearly 65 years across different industries and businesses. We offer seamless and extremely time-sensitive debt collection, which caters to your business operation needs while maintaining a consistent client relationship.

We understand the debtors are not always the same. Therefore, we share the best debt collection tips with our clients and offer services for effective accounts receivable management. For more information, contact us through our official website or give us a call at our official contact number at 877-270-2237.

Also Read: Everything You Need to Know about Debt Collection From Your #1 Collection Agency

5 Tips for Hiring a Debt Collections Agency

1. Search for Licensed Debt Collections Agencies

Would you settle your debts through a bank that doesn’t carry a license or a valid legal certification? Having a legally certified debt collector can help you with collecting debts on time and also prevent any chances of fraud and theft.

Operating in California, search for the best debt collectors that carry legal certification and licenses to help businesses like you with debt collection. On top of that, accreditations and business awards are a plus point. It guarantees a high success rate and proves the experience of a debt collections agency.

2. Inquire about the Agency’s Debt Collection Process

What if the debt collections agency that you hire has an aggressive approach in collecting the defined payments? It can potentially ruin your customer base in terms of business reputation while you may stand on the verge of losing your clients.

Therefore, it is critical to inquire about an agency’s debt collection tactics and processes. It gives you an idea of whether the debt collectors are the right choice for your given situation. Further, low payments or not, it is imperative that you maintain a healthy relationship with your clients regardless.

3. Compare the Costs of Agency’s Debt Collections Services

What are the costs and fees that you will incur when procuring the services of one of the best debt collectors in California? Costs play a major part in debt collection and may become a bigger problem than a bad debt if you ignore checking the cost structures.

For that reason, make sure to inquire about the cost and fees structure of your chosen debt collections agency. Sometimes, businesses might define a flat fee, which you may have to pay in advance, while other times, they may demand payments upon successful debt collection.

Conversely, certain debt collectors also operate on a “no fees when no collection” policy. While it is a favorable policy in contrast with a complicated and aging debt, such firms charge “contingency fees.” They may demand 25%-45% of the total debt amount upon successful debt collection.

4. Inquire About Skip Tracing Services

One of the factors that you should pay attention to is the “skip tracing” concept. Often, debtors can go beyond expectations when it comes to paying off old or aging debts. Some businesses or their officials can prevent debt collection in many ways, including disappearing.

As troubling as it may sound, it is the reality of modern-day competitive businesses. Still, debt collectors can perform ‘skip tracing.’ It is the method of pursuing an outstanding debtor through various databases and information centers using legal techniques. Upon detection and identification, a debt collections agency can then acquire the debt from your accounts receivable.

5. Learn What Industry the Debt Collections Agency Specializes In

Lastly, learn how experienced your chosen debt collections agency is. Do they provide debt collection services in the industry that you operate in? What is the range of services that they offer? By learning the experience of various debt collectors near you across multiple industries, you can narrow down the list of the best agencies for you.

Coast to Coast Financial Solutions has the experience of operating in various industries for 65 years. Hence, you can rest assured that with Coast to Coast Financial Solutions in California, the success rate of debt collection is high.

Conclusion

So, do you want your money without calling your clients again and again? Coast to Coast Financial Solutions can help. Our seamless debt recovery services can save you time and money with low additional costs.

Our experience gives you peace of mind when you let us handle your debts while focusing on more crucial business decisions and tasks at hand. Give us a call at 877-270-2237 for more info or schedule a meeting. Visit our official website Coast to Coast Financial Solutions to learn more and inquire about some of the most successful debt collection testimonials here in California.

While sending an invoice to your clients is a crucial aspect of being paid, many small businesses and companies are guilty of making some common mistakes that result in delayed payments.

In this guide, leading debt collection agency Coast to Coast Financial Solutions is going to highlight these common mistakes so you can prepare an accurate invoice.

Also Read: Things to Consider When Dealing with Overdue Invoices for Your Business

Most Common Invoicing Mistakes

TABLE OF CONTENTS

• 1. Sending the Wrong Invoice
• 2. Forgetting to Specify Payment Date
• 3. Sending to the Wrong Person
• 4. Failure to Categorize Services
• 5. Being Impolite in Your Invoice
• 6. Not Specifying Terms
• 7. Failure to Follow-up
• 8. Vague Payment Details
• 9. Including Surprise or Hidden Charges
• 10. Incorrect invoice number

1. Sending the Wrong Invoice

You’ve negotiated the initial deposit, and you just delivered the first draft. However, you end up sending the wrong invoice, which means either the amount you mentioned was wrong or some other mistake.

The best way to acknowledge invoice and billing errors is to use words like ‘oversight’ to make it a minor issue. Send well-worded apologies as soon as you spot the error, and don’t wait for your customer to highlight any errors.

2. Forgetting to Specify Payment Date

If you send ‘open invoices’ to your customers, you can experience delayed payments. Don’t send any invoices that contain vague details about the payment day.

The best way to avoid any confusion is to specify the exact payment date. For example, in case you are submitting your invoice on the first of the month and expect payment within a week, the payment date should be for the eighth day of the same month.

Don’t use words like ‘upon receipt’ and ‘within x number of days because the customer can misinterpret these dates. Always mention a specific date that will avoid any confusion or misunderstandings leading to a delayed or a fluctuating payment schedule.

3. Sending to the Wrong Person

Many times, you send the invoice to the right company but to the wrong person. Naturally, you don’t expect to receive timely payments if you don’t contact the right person who is responsible for arranging your payment.

Make sure you send the invoice to the right person. Following-up is another way to confirm whether the concerned person has received your invoice to initiate payment. Otherwise, you will have to restart the invoicing process wasting precious time and resources. That’s why you should know who to contact in the first place when you have to send an invoice.

4. Failure to Categorize Services

Your customers will appreciate it if you itemize or categorize your services. For example, if you run a content development company, you can categorize your services as blog posts, web copy, and social media posts. This tip comes in handy when you have to bill several customers who want customized services.

For example, if you are billing a customer for website content, your invoice will fall under the category of web copy. That way, you will get an idea of the services that are generating the most profits for your business.

5. Being Impolite in Your Invoice

While you are less likely to be rude to customers when preparing invoices, many small businesses and entrepreneurs fail to include messages like ‘Thank you for conducting business with us or ‘Looking forward to future collaborations.’

Such messages show the human side of your company, so make sure you add them to every invoice.

6. Not Specifying Terms

Providing a breakdown of your services or restarting your payment rules is a common reason for your customers to forget essential details. Providing a breakup will help justify your rates and eliminate any future possibilities of doing extra work free of cost.

Specify the terms you follow so your customers can’t make any more demands. If you add terms and conditions to every invoice, you adopt an effective way to protect yourself from this negative behavior.

7. Failure to Follow-up

Sending the invoice is half the job done. You or your team members must follow up with the customer to ensure whether they have released the payment or if there are any delays. Many times, customers forget to pay your small business because they are too busy focusing on their core services.

That’s where following up plays a crucial role. Sending email reminders or contacting the customer allows you to figure out the reason for any delays or issues in payments.

8. Vague Payment Details

If it’s your first time sending an invoice, the chances are that you may forget to list the payment method. In case you have not decided upon a specific payment method, your invoice must feature whether you want the customer to pay you via bank transfer or third-party payment service.

Once you clearly state the payment method on the invoice, remember to ask if the customer can choose your desired payment method. You should be ready to offer an alternative to your customer in case they have any problems with your chosen payment option.

You should also mention any specific credit cards or debit cards through which you want your customers to make payments.

9. Including Surprise or Hidden Charges

No customer wants to know about any last-minute or hidden charges he must pay to avail of your services. That’s why do not include any hidden or surprise charges in the invoice. In case you are charging your clients for additional hours or extra work, you should discuss it with your client before preparing the invoice.

10. Incorrect invoice number

As soon as you decide to have a dedicated invoice system for your business, you should allot subsequent numbers to your invoices. For example, if your first invoice number is 100001, then your second invoice must be 100002. Numbering your invoices is also essential for tax purposes.