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Does The Size Of Your Business Affect Your Debt Collection Process?

Yes, it definitely does. The size of your business has a direct impact on the choice of method you employ for your debt collection process. A small business enterprise will have few debtors and therefore, can choose to personally carry out the debt collection process. However, this is not usually possible for large business entities that have a long list of debtors in their balance sheets. In such cases, collecting the debts personally can prove quite uneconomical and thus, the need to hire a debt collection agency arises.
At the same time, a small business has a smaller magnitude of debts as compared to a larger business. Thus, the debt collection process relatively handles smaller amount of cash. This further explains why a debt collection agency needs to be hired by larger businesses and not smaller businesses. Besides, the expenses for hiring a Debt Collection Agency can prove unaffordable for the small enterprise due to smaller returns it generates; however, for big businesses, such expenses are insignificant when compared to their huge returns.
Thus, it is important that you evaluate the volume of your business before considering the option of a debt collection agency.

Here are some more factors that need to be considered before hiring a debt collection agency.

1.Your Business’s Overall Turn-Over
The returns generated from your business are important deciding factors of your debt collection strategy. The higher you earn, the higher will be the amount due from your debtors. In such situations, hiring a debt collection agency can be a good option.
On the other hand, if your earnings are low, hiring a debt collection agency will not be a feasible option. In fact, it will add to your costs and in the end, you might […]

By |June 5th, 2014|Uncategorized|0 Comments|

Cloud System Vs Manual System of Accounts Payable

In the age of computers and inventions, gone are those days when manual accounting was the need of the hour. Instead, the whole world is getting automated now, and so is accounting. Nowadays, the cloud system of accounting is quickly replacing the manual accounting system. This is mainly due to the following demerits of a manual system:
1. Late Payment of Debts
The manual system of accounts payable is tedious. It accumulates a lot of work by the end of the day. If accounts are not maintained in time, you will fail to get an exact figure of your debts on time, thus resulting to delayed payments. You may also be subjected to penalties and interest charges. All the more, certain allocated discounts will also get cancelled for such late payments.
In the business world, such late payments of debts scare away suppliers as they no longer trust your business engagement. In worst scenarios, suppliers may refuse to conduct further business with you. Hence, adopting a cloud system that ensures quick availability of figures is a feasible solution.
2. Poor Documentation of Accounting Information
The manual accounts payable system results into stacks and stacks of paperwork and documents. Maintenance of such documents is extremely inconvenient and troublesome. To conclude, it is a poor way of storing transaction information. It is highly risky. If you end up losing a single piece of information, it can lead you to tremendous hardships in tracking down your actual debts and receivables.
The above problem can be easily solved by adopting the cloud computing system. By adopting this system, your accounting system will get completely automated. You no longer will have to handle and maintain huge number of papers. Everything can be easily created […]

By |June 5th, 2014|Uncategorized|0 Comments|

Is Hiring a Debt Collection Agency Beneficial For My Business?

Yes, it definitely is. A Debt Collection Agency collects debts from your debtors on your behalf. This means that you are not directly involved in the debt collection process. This is helpful as chances of getting into an undesirable argument while collecting debts is greatly lowered. Some debtors can be really “sticky”. They may come up with a thousand excuses for not making payment. This can be extremely frustrating. In such situations, releasing your frustration and anger can land you into a series of undesirable problems. Hence, to be on the safer side, it’s advisable to hire a debt collection agency that will professionally take care of your debt collection process.
Hiring a debt collection agency is fairly simple and inexpensive. However, the debt collection agency should be highly competent. They should know how to professionally approach your debtors. Else, it can cost you a customer. On the other hand, once you are sure that your agency is competent, you can easily maintain healthy relations with your debtors.
Hiring a debt collection agency is a beneficial affair as they strictly have to adhere to the following requirements prescribed by law:

1. Communicating To Debtors with Respect
No matter how sticky your debtors behave, the debt collection agency should treat your debtors with respect. Any sort of unprofessional behaviour should not be tolerated.
Debt collection requires perseverance and hence, one should never give up. However, if at all their attempts go in vain, they can get help of appropriate authorities. Resorting to disrespectful behaviour is never an option as it directly affects customer relations. This can be harmful for the creditor’s business.
Thus, debt collection agencies should always treat their client’s debtors with utmost respect.
2. Providing Correct Credit Information to […]

By |June 5th, 2014|Uncategorized|0 Comments|

How To Go About Integrated Debt Collection

Normally, the debt collection process involves use of many possible ways so as to reach the relevant debtors for settlement of their debts. This is done with consideration to facilitate a smooth and effective strategy of getting in touch with the debtors. This method is quite effective especially when handling a large number of debtors as it makes the debt collection process cheap and easy to apply.

By |May 26th, 2014|Uncategorized|0 Comments|