Monthly Archives: April 2016

download (20)As a business, debt is incurred by customers and clients, no matter what type of business it is. Every company will have uncollected debts and there is no way around that. It's like knowing that every steel car will rust. It goes with the territory. Collection agencies help businesses like yours get some of that money back and this article discusses some on the types of debts you can collect on.

Credit and Personal Loans
For those of you that loan money to customers for personal loans or issue a line of credit for purchases; debt collectors can help attempt to get some of that incurred debt back to you, while staying within the local rules, terms, and laws. This type of debt can include any amount of debt, whether it is $100 or $10,000.

Mortgages
If your line of business involves loaning funds to customers for purchasing homes or other real estate in the form of a mortgage, then collection agencies can help attempt to retrieve past due amounts. In some situations, a repayment plan may be established while other times it can go through court.

Auto Loans
If you are a local bank or financial institution and you loan out money to purchase vehicles, you can retrieve bad debt through repayment plans, payoff discounts, or vehicle repossession. Oftentimes, garnishment can be another option. In many cases, debt collectors can make every attempt to help you get back the money that is owed.

Medical Bills
Medical charges are a very common form of debt for most people, mainly because they incur to a high amount and health insurance does not cover everything and also usually requires a deductible. Besides that, it often sits on the backburner by the medical facilities for some time before action is taken. This debt can usually be recovered through collections.

Banking Debts
With this category, it is not referring to bank loans, but balances owed own overdrawn accounts. Most of the time, an account receives several overdrafts and the owner cannot pay the negative balance to keep the account active. In these situations, the account usually gets closed and the debt awaits payments. Collection agencies can help you get that money back. This often happens through collection letters, followed by court action if the account is not repaid or paid back under a set agreement by the two parties involved. Collection agencies charge a fair commission to collect such debt.

images (16)It is good to look for alternative ways to collect debt from your customers. However, if all other avenues have failed, you may have to use debt collectors to get your cash. Every agency is different from the other and not every one that is right for your kind of business. Here are a few things to consider.

Some debt collectors specialize in dealing with large businesses while others deal with small businesses and households. Check in your locality for the collectors that target similar clients like the one that has defaulted. The method the agencies apply has a high likelihood of succeeding in your case.

Every state has its own regulations that cover how debt collection is done and how the agencies work. It is important to ensure that you select a firm that adheres to Fair Debt Collection Practices Act. Moreover, the firm should be bonded and licensed to work in the locality.

Sometimes the firms use very uncouth means to collect the debts. This may raise legal cases if the debtor feels that the agency has acted in bad faith. The insurance ensures that you are not held liable for hiring the agency to collect the debts. Ensure you pick a firm that has a valid errors and omission insurance. It will act as your protection if you are dragged to court.

Once you have a list of a few companies, take time to compare their costs. Different agencies use different formulas to come up with their rates. Some charge a small flat rate mostly associated with pre-collection activities. You are then charged a contingency fee that is part of the amount collected. The charge is about 20% to 30% of the amount collected. Pick a company that offers a no collection no fee model.

Some debtors tend to run away with your cash and ignore your calls. Some even skip town. If this is your situation, ask if the agency you are using has a skip tracing service. This service enables the debt collector track the defaulting client even when they have not left any forwarding address.

Just remember that you shall not receive all the cash once you have hired a debt collection agency. For this reason, it is advisable to exhaust all of the other means of collecting debt before asking for help. However, if none of the other methods work, hire a firm that will collect the debts right away.

 

download (19)As you read this, an employee in some part of the world is struggling to find his bill in order to file his reimbursements and his manager is having a miserable time going through a stack of receipts that are not making it any better for her. Have you been there as well? Then it is time to digitize the process and make it a lot easier.

Over the past few years there have been a lot of buzz about going paperless in offices, home and on-field workplaces. A bunch of reasons might have reached your ears about going paperless; like saving the environment, saving money for your company, hassle free procedures et al. However, another important approach, which remains unnoticed,is increased productivity. Remember the time, you used to keep all your receipts in a shoebox? They were stacked up at one place, but were they organized? They were not in any planned order and finding a specific one at the drop of a hat was a myth. It is time to change that.

Information as we know continues to grow at an astonishing rate, as is the technology that is used to create, store and share it. The clients, customers and public demands easy access to data and in order to achieve that, a collaborative effort is required to distinguish, sort and prioritize information, data and management tools. While Small and Medium Enterprises (SMEs) are taken into account, the digitization of expense management is required for saving time, high productivity and employee satisfaction. In a recent study by University of Michigan, it was found- paperless management enhances customer service, reduces cost, and improves speed, efficiency and productivity among employees in the workplace. In addition to that, government agencies and organizations in Australia are moving towards virtual business processes and digital record management to inculcate the true essence of the era of digitization.

It has also been proven over time that smart phones and cloud based application services can be used to their maximum potential and help to make cumbersome processes easier. With the latest mobile applications, that online automate expense management procedure, it easy to capture receipts or expenditure data. Take a simple snapshot of the receipt, send it for approval and your work is done. With this, it is much simpler to apply for reimbursements, review and approve these reports as well as tackle dishonest claims.

Well, even though you are almost finished reading this, that employee mentioned at the start of this article, is still struggling to find his bill and the manager isn't sorted with the stack of receipts yet. Think again, do you want to be one of them? Go paperless and get yourself a digital and hassle free solution.

Happay is a Bangalore based payment company that offers a unique business expense management solution interlinked to a prepaid expense card.Employees make business expenses (food, travel, fuel, hotel, etc) with the Happay card and submit expenses on-the-go. 500+ companies across 10 industry verticals including hyperlocal delivery, retail, hospitality, eCommerce, healthcare, education etc. use Happay to make their expense management workflow cashless, paperless and mobile.

 

download (18)The debt settlement is the means of negotiation that comes into play when you or a respective company is liable to pay money so that the creditors accept some portion of money against the full payment. The debt settlement company will force you to pay some amount on a monthly basis that is due until you have enough payment to pay off your creditor.

The theoretical aspect

As soon as you agree to a debt settlement program, many of the settlement firms will advise you to stop making the credit card payments monthly. Taking such a step will enable you to save money. Once you have enough money, the debt settlement firm will negotiate with your credit card company. It will offer them a one-time and a large payment that will settle your debt.

It is believed that many of the debt settlement firms claim that the one-time payment is much less that the original payment that you owe. They even state that will ensure that you no longer get bothered through endless calls from the creditor or the collection agency. But the downside is that people incur much debt, and debt settlement does not look good at all.

The reality

If you agree to the following debt settlement plan, then you would know the real picture. For instance, you have 10,000 dollars in debt and that it takes three years for you to save enough to reach a settlement. This usually amounts to the half of the amount you owe, but your total debt would have doubled.

By the time you save half of your original debt, which is 5000 dollars; the debt will become 20,000 dollars respectively. In this regard, to reach a settlement will mean that you should have half of the new amount which is 10,000 dollars.

Disadvantages

Fees can be substantially high: Several of the debt settlement companies not only charge an upfront fee but a percentage of the total debt as well.

Your credit score can get affected: It happens that the credit score gets dropped because of partial or late payments. This occurs because you do not make payment for some time as part of your debt settlement. On the other side, the financial experts believe that settling of the debt for less against the full credit card payment also hurts the credit card score considerably.

Your credit card company can sue you: The moment you stop paying credit card bill on time, the creditor can file a lawsuit against you.

Not all debt settlement companies are reliable: You need to remember that the industry is not solely run by the federal government. There are plenty of scams where the respective firms can collect money and never settle the debt payment at all.