Category: B2B Collections

Past Due Invoice? Don’t Panic! Here are 5 Steps to Collect Your Money

Post author By Monetaria Group
Post date September 4, 2024

Invoices are the bedrock of pretty much every business. Without them, you have no cash flow. And with zero cash in the bank, your reputation with clients and vendors quickly withers on the vine.

That means knowing how to react when an invoice goes unpaid isn’t just a good idea — it’s vital to the welfare of your business.

Look, most businesses will deal with at least one delinquent client during their lifespan. So don’t freak out. At Monetaria, we help businesses deal with nonpayment issues every day. In many cases, fixing the problem can be as easy as picking up the phone.

To help you deal with MIA invoices, read our quick step-by-step guide below.

Assume Your Clients Are Humans

Okay, this might sound ridiculous, but hear us out. In our experience, 99% of people want to do the right thing. So it’s totally possible that this is a simple miscommunication, and you’ll both have a good laugh about it later.

So before you pick up the phone, ask yourself these three basic questions.

Did I remember to send the invoice?
Did I send it to the right address?
Was my due date clearly legible?

If these questions don’t resolve the issue, give your client a call.

Sometimes the client has simply forgotten about payment — they were out of town or dealing with a personal issue — and they’re willing to send it over right away.

Once you’ve told them about the outstanding bill, set up a payment date. Make sure not to get off the call until they’ve agreed to that date — don’t settle for “it’s in the mail” or “as soon as possible.”

Leverage Some Incentives and Penalties

If the new payment date arrives and you’re left empty-handed, it’s time to try a new approach. You can send emails or texts to remind your client; after all, following up and persistence is crucial to collecting your money, but sometimes you need to know when it’s time to escalate.

We recommend offering incentives for early payment and penalties for late payment. For example, you could offer two percent off their bill if they pay a week before the due date. This encourages them to send you the money long before you have to start worrying about it.

While most clients respond well to incentives, some might need a gentle nudge to send out the check. Penalties not only motivate clients to pay, but the accrued interest can also ease your cash flow issues if you end up getting the money a few days or weeks late.

Get Stern... But Not Too Stern

So you’ve called and set up some incentives and still, there’s nothing in the inbox. A written letter that lets your client know they’ve fallen behind can make a big difference.

This isn’t about constant emails or texts, but rather a thoughtfully worded response to how their inaction affects you. After all, behind every business, there are people with lives and responsibilities. By ignoring your invoice, that client has decided to ignore you, too.

A written letter also adds to the documentation or proof that you’ve tried everything you can to get your outstanding debt paid. If further action ends up being needed, you’ve clearly done everything you can to help them pay.

Contact Your Debt Specialists

Months have passed, and you’re no closer to getting what you’re owed. Now would be the time to call in commercial debt recovery experts.

It may seem like you’re being tough, but truthfully, it’s more about being persistent. You haven’t done anything wrong, so why should you let this debt fall between the cracks?

At Monetaria, we have more than ten years of experience negotiating with debtors and getting past their excuses and empty promises.

From background investigations to payment plans, we’ll do whatever it takes to get you paid. That way, you can stop worrying and get back to focusing on your business.

Keep Your Business Relationships Professional

No matter how frustrating nonpayment can be, you must keep your head up and stay cool. Never insult or threaten a client that refuses to pay. Your business can survive a few delinquencies, but what it cannot survive is a tarnished public image.

You can preface any follow-up calls by asking if they’re satisfied with your services. That way, if they haven’t paid because of a gripe with one of your employees or some miscommunication, they can let you know before it escalates.

By keeping your interactions with clients private, you’ll be in better shape to impress future professional contacts and growing your business.

Don’t Let Unpaid Invoices Stop You

We know how frustrating unpaid invoices can be. They add stress and uncertainty to your business and your relationships. But no matter what, just remember that you deserve to get paid.

Hopefully, our simple five steps to debt recovery can help you reclaim a steady cash flow. If you need more help with your commercial collections, contact us anytime. Monetaria is on your side and ready to get your money recovered.

B2B Collections Loan Advice

should sales reps handle overdue account receivables?

Post author By Monetaria Group
Post date August 30, 2024

Cash flow is the lifeblood of most small to medium businesses and nothing puts a dent in your cash flow like your customers not paying up.

When payment comes due and the customer is nowhere to be found, there tend to be two schools of thought on who should deal with overdue account receivables.

The first school of thought says that collecting on overdue accounts is the sole responsibility of your accounts receivable team or your collections department.
The second school of thought says that the sales cycle isn’t technically complete until the customer has made payment, meaning your sales reps should play a part in credit control and collections.

If you’re thinking “both of those are valid points” then you understand the conundrum. At Monetaria, we understand you need your customers to make payments to ensure consistent cash flow, which means all hands to the pumps.

But, at the same time, should you be diverting your sales team away from their own responsibilities to help with collections?

This is particularly relevant to smaller businesses that may not have a dedicated collections team and using their sales reps might seem like the only option.

Today, we’ll be looking at the pros and cons of the situation and trying to answer the question, should sales reps be responsible for collecting overdue account receivables?

The pros of using sales reps in collections

An existing relationship

Calling someone to ask for money is uncomfortable, regardless of context. However, having an existing relationship in place can make the whole process a lot smoother.

Your customers already know and trust your sales reps. That pre-existing relationship can counteract, to an extent, the discomfort of having to call a customer to press for payment on an outstanding invoice.

Because the customer already has a positive relationship with your sales team, it’s also harder for them to simply ignore a collections call or email. Customers generally find it much easier to ignore an unknown accounts receivable person than a sales rep with whom they already have a personal connection.

It’s not a collections calls

Getting a call from a collections team sets the tone for conversation to come and can immediately put some customers on the defensive, making it harder to get a positive outcome.

However, if your sales rep is simply calling to make sure the customer is happy with their product and conduct some sales aftercare, then they have the opportunity to connect with the customer and set them at ease before gently reminding them that payment is outstanding.

Sometimes an approach that is less obviously focused on collections can yield better results.

The cons of using sales reps in collections

Unfortunately, when it comes to using sales reps as part of the collections process, there are some obvious downsides, including:

Your sales team aren’t selling

The most common argument against using sales reps as part of your collections efforts is that, while they are making those collections calls, they aren’t selling.

The primary focus of your sales team should always be making sales.

Additionally, as obvious as it seems, your sales team isn’t a collections expert.

Even with training on the gentle persistence approach, they might just not have what it takes to convince the customer to make payment on an overdue account.

It puts customer relationships at risk

As we’ve already mentioned, making collections calls is a difficult and uncomfortable process, especially for the customer.

Your sales team has worked hard to cultivate the relationships they’ve built with your customers and wrongly timed or toned collections calls can ruin all of that hard work.

In the customer’s mind, contact with the sales rep has now shifted from an opportunity to add value, to an uncomfortable request for funds they might not have, making future sales calls much more difficult.

For companies who are reliant on repeat business, putting the customer relationships that their sales team has carefully crafted at risk can be a real impediment to using their sales force in collections.

There’s no ‘one size fits all’ solution

As you can see, just like the original arguments for and against using your sales reps in collections, both the pros and cons are fairly convincing.

With good arguments on both sides, it can be very hard for business owners to make a call on whether to use their sales reps in collections.

The good news is that there are other options, including:

Connecting sales commissions to completed payments

By releasing the commission generated by sales only once payment has been made, businesses can encourage the sales team to have a vested interest in seeing customers make a timely payment.

Since commissions are connected to completed payments, sales teams are more likely to focus on their due diligence, vetting customers properly during onboarding, and making sure the customer fully understands your business’s payment terms.

A greater focus on completing the entire sales process, from initial contact to payment can discourage some sales teams from pushing through customers with poor payment records in order to inflate their numbers.

Having your sales team put the necessary precautions in place at the beginning of the sales process can help to prevent the collections team from needing to get involved further down the line.

Create a customer success team

As a rule, the customer success team sits in between the sales team and collections and enjoys some of the benefits of both.

They can draw on the information and relationships that your sales team has built to connect with the customer and present themselves as adding value by helping the customer get the most from your goods and services.

At the same time, futures sales aren’t contingent on those relationships, so your customer success team can be used to gently push for payment on recently overdue accounts, perhaps less than 30-days, before handing any persistently outstanding accounts over to collections.

contact the B2B debt specialists

Instead of employing your sales force to assist in your collections efforts, you can contract with commercial debt recovery specialists like Monetaria.

We specialize in B2B and Merchant Cash Advance collections and have more than a decade of experience in helping businesses collect what they’re owed.

Our expert collections teams employ custom-tailored recovery strategies based on your specific circumstances. We know there isn’t a one size fits all solution and we’re flexible enough to find the right solution for you and your business.

Contact us today to find out more about how we can help with your outstanding accounts receivables and let your sales team go back to what they do best. Selling!

B2B Collections

10 Debt Collection Tips to Keep the Cash Flowing

Post author By Monetaria Group
Post date August 20, 2024

Getting paid on time isn’t totally out of your control. This isn’t the weather we’re talking about — it’s business. Sure, everybody runs into roadblocks with a customer or two. But what separates a steady cash flow and a dried-up channel is right there in your hands.

At Monetaria, we know there are plenty of things you can do to make sure your customers pay on time. Ten things, in fact.

The future of account receivables is looking up. Things are more technical now, and that’s good news. You have plenty of tools and tricks awaiting you to lower your stress levels and actually look forward to the end of the month. Here are some of the best tips to get paid on time, every time.

Record, Record, Record.

If it sounds like we’re saying the same thing over and over — it’s because we are. Throughout our list, we’ll be pleading with you to document customer interactions, invoice calls, responses, and actions taken to resolve overdue receivables. So it’s worth just coming out and saying it at the top of the list: Record everything! It will help you a lot in the long run.

Nip Complaints in the Bud

Most overdue payments come from customers that have an issue with your service or product. They may have mentioned something in passing, or wrote a bad review on Google. Either way, it’s important to contact them and hash it out.

Make sure to keep documentation of the conversations you have with customers. You don’t have to go covert ops and buy a hidden mic or anything. Just write down the date and the broad details of the conversation. Whatever issues your customer has with your business, getting them resolved will always be cheaper than negotiating bad debts down the road.

Reward Paying on Time

Setting up some minor incentives can have profound psychological effects on your customers. Giving them 3% or 5% off for early payment means they’ll think twice before adding your invoice to the bottom of the list.

To spice it up a notch, you could also throw in a penalty. Letting your customers know that their overdue accounts accrue interest charges can help remind them that what isn’t paid today will only cost more tomorrow.

Cut Risks with Credit Applications

For loans and high-cost invoicing, it’s worth taking the extra time to run a credit check. Both Equifax and Transunion can pull business credit reports for B2B business loans and other dealings. The money it costs will seem like peanuts compared to the stress it’ll save you knowing your customer’s financial health.

A B2B credit report will let you know about any liens, court judgments, and delinquent accounts under the business’ name. When you know that your prospective client has been sent to collections in the last six years, it may make you rethink your decision.

Invest in Airtight Contracts

Downloading free contracts off the internet, or asking a buddy’s girlfriend’s brother who used to be a paralegal to write up your customer contracts is bound to make you eat crow. The money you spend on a thorough contract will save you in the long run — we guarantee it.

Double-Check Client ID

When setting up a new account, you need to do your research. Ask for a photocopy of the client’s driver’s license. Then, when you’re confirming their application or account information, compare the name, address, and date of birth.

If anything doesn’t add up, ask your client. For example, they could’ve recently moved, and the verification saved you the headache of sending an invoice to the wrong address.

Ask for a Deposit

Getting partial payment ensures a level of trust between your business and your customer. You also get to bolster your cash flow long before the account is due. It can be as simple as 30% of the invoice. For monthly payments, we suggest asking for first and last.

Be Polite... but Be Heard

When a client doesn’t pay on time, it’s important that your reminders be polite and considerate. Your relationship might be under a little pressure, but most of the time, you can resolve the account on good terms.

Make sure you update the debtor on how much is due with a collection letter. and offer some guidance on how they can resolve the account. If they are strapped for cash, there’s a good chance you aren’t the only one calling for payment. Who do you think they’ll want to pay, the person that tries to understand the situation or the one yelling their ear off?

Invest in Airtight Contracts

We live in a world of computers and automation, so leverage some of that silicon and solder by setting up notifications when a payment is overdue. That way, you can cancel their monthly service or stop your crew from going to the job site. It sends the message that you’re aware of the overdue account while also not putting your finances on the line.

Contact the Pros

When there’s no answer on the other end of the line, or the account goes a month or more overdue, it might be time to call in the calvary. You can submit accounts to Monetaria day or night, and we’ll get to work to get you paid.

Put an end to the past due blues

Waiting for an invoice to come in doesn’t have to feel so stressful. There are lots of things you can do to make sure your invoices are paid in full.

Try implementing some of our professional tips, and you’ll soon see how easy it is to keep bad debts at bay. If you have questions about B2B collections or an account you’d like to resolve — we’ve got you covered. Contact us anytime.

B2B Collections Collection Tips

How to Improve Your B2B Debt Collection

Post author By Tzali Reicher
Post date August 14, 2024

In a perfect world, every business would have flawless B2B collections, with clients paying all their bills and unpaid invoices in full and on time every month. However, reality often does not match our expectations, and businesses face the challenge of dealing with clients who struggle to meet payment deadlines.

To address this issue, implementing best practices in B2B collections is crucial. These practices aim to reduce friction, enhance transparency with clients, and ensure a proactive approach tailored to each client’s unique situation.

Let’s explore how you can make your B2B collections process more effective and efficient.

what is b2b collections?

B2B collections refers to the process of recovering outstanding debts and payments from your company’s business customers. This includes a range of strategies, from friendly reminders to late fees and even legal action if it becomes necessary. Prior to involving third-party agencies, businesses should exhaust first-party collections processes, which helps maintain warm and better personal relationships between the two companies.

5 best practices to enhance your b2b collections process:

1) Send and Track Multi-Channel Reminders:

A successful B2B collections process involves employing a multipronged communication strategy. Don’t rely solely on one method of communication. Start with reminder emails and have a comprehensive plan in place to escalate communication when specific markers are passed. For instance, consider sending a reminder email when the debt is 15 days overdue, followed by a physical letter at 30 days, and a phone call at 45 days. Using automated emails with specific triggers can be very helpful in ensuring your message gets seen.

Document and record each step meticulously for internal tracking and, if necessary, legal purposes.

2) Make it Easy to Facilitate Client Payments:

Removing barriers to payment is essential to encourage timely remittance. While you may not eliminate all barriers, focus on reducing friction in processes under your control. Consider the following:

Utilize modern payment tools to streamline and automate transactions.
Accept multiple types of payments to accommodate client preferences.
Offer payment plans to ease financial burden for clients.

3) The Carrot and The Stick: Be Accommodating for Those Working With You, Implement Penalties for Late Payments:

Though empathy and understanding are vital, there are instances when penalties become necessary to resolve debts. Transparency is crucial when applying penalties, and all parties involved should be fully aware of the following:

The nature of the penalty (e.g., flat fee, percentage of the invoice).
The timing of penalty enforcement (number of days past the due date).
The possibility of escalating penalties (e.g., suspension of services, collections involvement).

Having penalties in place and consistently enforcing late fees can reduce the likelihood of difficult collections.

4) Identify Warning Signs and Proactively Communicate:

Early identification of potentially distressed accounts is advantageous, and vital to stay ahead of bad trends and late payment habits. Analyze customer data and monitor your Collections Effectiveness Index (CEI) to spot potential issues. An effective Accounts Receivable (A/R) platform should include an intelligence component for quick snapshots and forecasting. This enables informed decision-making and allows for proactive measures to address accounts with red flags, preventing further complications.

When you identify a concerning customer or trend, proactively reach out to them and check in. Offer solutions and give the dialogue going. Constant warm communication can go a long way in making sure the client continues to feel good about working with you and will pay what they owe.

5) Consider Hiring a Third Party Debt Collections Agency

If all else fails and the client still has unpaid invoices and outstanding bills, consider hiring a debt recovery agency that is experienced in business to business debt collection. Some agencies, like Monetaria, have debt recovery attorneys on staff, which will help you identify additional routes and strategies you can employ, both in the legal arena and outside of it, to ensure you get paid.

Adopting these best practices will enhance your B2B collections process, leading to more efficient debt recovery and healthier business relationships. Tailor your approach to each client’s unique needs and situation, which will build an enduring and stronger foundation for your financial success.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.

If you have unpaid debts that need to be recovered, commercial debt collection may be a good option for your business. A commercial debt collection agency can help you with the process of recovering past-due accounts and provide guidance on best practices for managing accounts receivable.

Led by a team of experienced commercial debt collection attorneys, Monetaria Group has helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!

B2B Collections

What is Commercial Debt Recovery and Collection?

Post author By Tzali Reicher
Post date August 8, 2024

What Is Commercial Debt?

Commercial debt recovery and collection refers to the business-to-business process of recovering debts from other organizations. This can be for unpaid invoices for services rendered, missed repayments, or any other reason one business had to pay another but didn’t. Recovering commercial debt is a complex process, as it involves identifying the parties involved, determining the terms of the debt, and using legal or other means to collect payment.

There are a few different approaches to commercial debt recovery and collection. One option is to handle the process in-house, using internal staff or specialized departments to handle the collection efforts. This can be a good option for small businesses with a limited number of outstanding debts.

Another option is to use a third-party debt collection agency. These companies specialize in recovering unpaid invoices and receivables and can often do so more efficiently and effectively than businesses can on their own, allowing the business to focus on developing the business further while the collection agency works on ensuring they get paid. They might use a variety of tactics, such as sending letters, making phone calls, and negotiating payment plans to try to collect the debt.

In some cases, the recovery may involve legal action. This can include filing a lawsuit, obtaining a judgment, and garnishing wages or seizing assets to recover the debt. This should be a last resort, as it can be costly and time-consuming, but it may be necessary if other efforts have failed.

It’s important for businesses to have a clear and effective process in place for recovering unpaid debts. This can help ensure that the company is able to maintain cash flow and avoid financial hardship. It can also help protect the company’s reputation, as unpaid debts can damage relationships with customers or suppliers. Commercial debt recovery and collection is a critical aspect of managing a business’s financial health. By having a clear process in place and working with experienced professionals- like Monetaria-, businesses can effectively recover unpaid debts and maintain a healthy bottom line.

Is Commercial Debt Collection Regulated?

Commercial collection services are regulated by a number of federal and state laws. These laws outline the rights and responsibilities of both the creditor (the business trying to collect the debt) and the debtor (the business that owes the debt).

At the federal level, the Fair Debt Collection Practices Act (FDCPA) sets out rules for how consumer debt collectors can interact with debtors. While the FDCPA applies to personal, family, and household debts, and not to debts incurred by businesses, many states have their own debt collection laws that apply to commercial debts, and these laws may provide additional protections for debtors.

In addition to these laws, there are also industry-specific regulations that may apply to commercial debt recovery and collection. For example, the healthcare industry is subject to the Health Insurance Portability and Accountability Act (HIPAA), which has provisions related to the collection of medical debts.

Commercial debt collection agencies can employ certain collection methods that are banned under consumer collection regulations for non-commercial entities. These agencies need to be licensed and bonded before performing collections in most states, so when looking at hiring a third-party collection agency, it is critical to ensure they are qualified and credentialed. Monetaria Group is led by a team of debt collection attorneys, which lets clients know all their debts and cases are being handled legally and competently, with no chance of trouble down the road.

Is Commercial Debt Collection the Right Choice for My Business?

When it comes to deciding whether to hire a business-to-business collection agency, there are a few factors to consider. If a business has a large number of unpaid debts or if it lacks the resources to devote to debt collection, it may be more efficient to use a third-party agency. Collection agencies have the expertise and resources to handle the process efficiently, and they can often recover debts more quickly than a business can on its own.

However, businesses should be aware that using a collection agency may be expensive, and it’s important to carefully consider the costs and benefits before deciding whether to use a collection agency.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on bookkeeping, to ensure your business gets paid.

Led by a team of experienced debt collection attorneys, Monetaria has helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!

Tags commercial collections, Debt Collection, Debt collection lawyers

B2B Collections

Commercial Debt Collections and Recovery: A Comprehensive Guide

Post author By Tzali Reicher
Post date July 30, 2024

What Is Commercial Debt?

Commercial debt refers to the financial obligations that businesses owe to other businesses, often arising from transactions like unpaid invoices, loans, or other financial arrangements. Unlike consumer debt, which involves individuals borrowing money for personal use, commercial debt is business-to-business (B2B) in nature. This type of debt can accumulate when one company provides goods or services to another, but the receiving company fails to pay on time. Managing commercial debt effectively is crucial for maintaining a company’s cash flow and financial health.

What Is Commercial Debt Collection?

Commercial debt collection is the process of recovering unpaid debts from businesses. It involves various strategies to ensure that the debtor pays what they owe. This can include sending reminder notices, making collection calls, and negotiating payment plans. In some cases, it may also involve legal action, such as filing a lawsuit or obtaining a court judgment. The goal of commercial debt collection is to recover the money owed in a manner that is both efficient and compliant with relevant laws and regulations. Companies can handle debt collection internally or hire specialized third-party agencies to manage the process.

What Is the Difference Between Commercial and Consumer Debt Collection?

The primary difference between commercial and consumer debt collection lies in the nature of the debt and the legal framework governing the collection process. Consumer debt involves individuals and is subject to strict regulations, such as the Fair Debt Collection Practices Act (FDCPA), which protects consumers from abusive collection practices. Commercial debt collection, on the other hand, involves businesses and is generally less regulated, allowing for more direct and flexible collection methods. However, it is still governed by certain federal and state laws that ensure fair treatment. Additionally, commercial collections often require more specialized knowledge due to the complex nature of business transactions.

When to Use Commercial Collection

Businesses may decide to use commercial collection services when they face challenges recovering debts on their own. This can occur when internal resources are insufficient, or when the volume of outstanding debts becomes too large to manage effectively. Using a commercial debt collection agency can be particularly beneficial if the company lacks the expertise or staff to handle complex debt recovery cases. These agencies bring specialized skills and tools that can increase the likelihood of recovering owed amounts. They also allow businesses to focus on core operations while professionals handle the collection process.

When Is the Right Time to Escalate a Late Payment to a Commercial Debt Collection Agency?

Determining the right time to escalate a late payment to a commercial debt collection agency depends on several factors, including the amount owed, the length of the delinquency, and the debtor’s responsiveness. Generally, businesses should consider involving a collection agency if payments are significantly overdue—typically beyond 90 days—and the debtor has not responded to reminders or payment requests. Additionally, if the debt is substantial and impacts the company’s cash flow, it may be prudent to escalate sooner. The earlier a debt is addressed, the higher the chances of successful recovery, as older debts are often more challenging to collect.

How to Find the Right Commercial Debt Collection Agency for You

Selecting the right commercial debt collection agency involves careful consideration of several key factors. First, businesses should verify that the agency is licensed and bonded, ensuring it meets legal requirements and has the authority to operate in the relevant jurisdictions. It’s also important to evaluate the agency’s experience, particularly in the specific industry or type of debt the business is dealing with. Checking references and reviews can provide insights into the agency’s reputation and success rate. Additionally, understanding the agency’s fee structure and collection methods is crucial to ensure they align with the business’s needs and ethical standards.

Monetaria Group, for instance, offers specialized commercial debt collection services led by a team of experienced debt collection attorneys. They provide a comprehensive approach, from legal compliance to effective recovery strategies, making them a reliable partner for businesses looking to recover outstanding debts. By choosing a reputable agency, businesses can enhance their chances of recovering owed amounts efficiently and maintaining financial stability.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.

Tags b2b collections, commercial collections, Debt Collection

B2B Collections Collection Tips

5 Tips for Better B2B Collections

Post author By Tzali Reicher
Post date July 25, 2024

Efficient B2B collections are essential for maintaining healthy cash flow and strong business relationships. Here are five tips to enhance your business-to-business collection process from expert team at Monetaria!

5 Tips for Better B2B Collections

1. Maintain a Good Relationship with Your Customers

Building strong relationships with your customers starts with effective communication and excellent customer service. When you maintain a positive rapport, your customers are more likely to prioritize paying their invoices. Good customer service includes clear communication, managing difficult conversations tactfully, and consistently putting the customer first. By fostering these relationships, you increase the likelihood of timely payments and reduce the need for aggressive collection tactics.

2. Send Invoices Promptly

The faster you send out invoices after delivering products or services, the sooner your customers can prioritize their payments. Prompt invoicing sets the stage for timely follow-ups and reduces the chances of invoices being overlooked. Implementing a systematic approach to invoicing ensures nothing falls through the cracks and helps you maintain a steady cash flow.

3. Follow Up Regularly on Unpaid Invoices

Consistent follow-up is key to ensuring timely payments. Depending on your industry, it may be appropriate to follow up weekly on unpaid invoices. If an invoice is more than 30 days past due, consider contacting the customer directly to discuss payment options. Regular follow-ups help keep payments on track and demonstrate your commitment to maintaining smooth business operations without appearing overly aggressive.

4. Use a Debt Recovery Service When Necessary

While flexibility with payment deadlines is important, there are times when professional help is needed to collect B2B debts. If an invoice is more than 30 days overdue, and you’ve made several follow-up attempts without success, it might be time to consider a debt recovery service. Services like Monetaria specialize in debt collection and can help develop a plan that fits your situation without damaging your customer relationships.

5. Keep Track of Payments

Accurately tracking payments helps avoid misunderstandings and prevents animosity from customers who might feel unfairly treated. Proper payment tracking ensures that customers receive credit when due, maintains a professional image, and aids in future collection efforts. An organized approach to tracking payments also supports transparent communication and builds trust with your customers.

RELATED: What is Monetaria?

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.

Tags b2b collections, commercial collections, debt recovery

B2B Collections Collection Tips

How to Send Someone to Collections: A Guide

Post author By Tzali Reicher
Post date July 17, 2024

Businesses need to stay on top of outstanding invoices and unpaid accounts receivable to stay afloat. To ensure effective debt recovery and management of the collections process, organizations must adapt to new laws, regulations, and emerging challenges. From the experts at Monetaria, here’s a guide on how to send someone to collections.

Understanding the Post-Pandemic Collections Landscape

During the COVID-19 pandemic, many debt collectors had to close their doors or shift to remote operations. State governments implemented further restrictions on collection activities. For example, Massachusetts prohibited collection calls, new lawsuits, income garnishments, and property seizure, while Illinois required debt collectors to negotiate reasonable payment arrangements or delay collections for 60 days.

At the federal level, the US Senate continues to debate legislation limiting debt collection during crises. Despite these obstacles, debt collection activities persist, with an increase in collection cases over the past decade. The Consumer Financial Protection Bureau (CFPB) has established guidelines for debt collectors, allowing interaction through text, email, and social media, but with restrictions like limiting calls to seven times per week and providing consumers with opt-out options.

Selecting the Right B2B Debt Collection Agency

Choosing the right B2B debt collector is crucial in this new landscape. A reputable agency that is up-to-date with current challenges, follows new regulations, and maintains a good reputation can help avoid legal troubles and protect your company’s reputation. In this environment, Monetaria Group has emerged as one of the most trusted and dependable collection agencies. They emphasize responsibility, compliance with the latest rules and regulations, and maintain an exceptional reputation, striving to achieve the best results for their clients.

By partnering with Monetaria Group, businesses align with a committed team of experts who are knowledgeable about industry standards and trends, offering the most experienced advice on collections.

How Go About Effective B2B Debt Collection

1-3 Days After Invoicing: Initial Follow-Up Resist the urge to immediately escalate to a debt recovery team. The client might not have seen the invoice or had time to respond. Send a polite email or make a courtesy call referencing the sent invoice to bring it back to their attention. This approach shows you’re following up while maintaining a polite and collaborative tone.
7 Days After Invoicing: Gentle Reminder After a week, increase the pressure slightly. Send a more sternly worded email emphasizing that the payment is overdue. Set a deadline, typically 14 days, and express your willingness to work together for a mutually beneficial outcome, asking if they are experiencing financial difficulties or when they intend to pay.
21 Days After Invoicing: Direct Contact Contact multiple senior executives and leaders in the business. A phone call is more compelling than an email and adds a personal touch. Be polite but firm, stressing that it’s the final opportunity to arrange payment before further escalation.
More than 30 Days After Invoicing: Legal Action If all previous attempts have been ignored, it’s time to enlist a reliable debt collection agency. Choose an agency that adheres to legal processes, maintains transparency about costs, and keeps you informed throughout the process. Monetaria Group, with over a decade of experience and a team of debt recovery attorneys, offers top-tier services ensuring swift and efficient recovery while fostering positive client relations.

RELATED: What is Monetaria?

When to Hire a Debt Collection Agency

Knowing when to employ legal tactics in debt collection is crucial. Escalating to a debt collection agency, attorney, or lawsuit can strain client relationships, but timing it right can mean the difference between a successful recovery and writing off the debt. If you have unpaid debts that need recovery, a commercial debt collection agency can guide you through best practices for managing accounts receivable.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.

Tags b2b collections, commercial collections, Debt Collection

B2B Collections Collection Tips Merchant Cash Advance Collection

How Much Do Collection Agencies Charge?

Post author By Tzali Reicher
Post date July 11, 2024

When you’re thinking to hire a debt collector to help you collect unpaid invoices, the first question you might find yourself asking is: how much does a collection agency charge?

To understand debt collection fees, there are two primary pricing models that collection agencies use: the contingency fee structure and the flat fee model.

In this guide, we’ll explore the key differences between these two pricing structures, their benefits and drawbacks, and provide clarity on what you can expect in terms of debt collection agency fees and how much it costs to send a delinquent client with overdue bills to collections.

Hire a Debt Collector on a Contingency Fee: No Payment, No Fee

Most debt collection agencies operate on a contingency-based arrangement. This means they will only charge you if they successfully collect the debt on your behalf. For instance, if you engage a collection agency with a 20% contingency fee to recover a $10,000 debt, and they succeed, you’ll receive $8,000, while the agency keeps the remaining 20%, which is $2,000, as their commission. On the other hand, if the agency fails to collect the debt, you won’t owe them any fees.

The contingency fee percentage typically falls between 20% to 50%, depending on various factors such as the age of the debt (older debts might incur higher fees), the balance owed (small-balance accounts may attract higher fees due to lower profit margins), the volume of accounts (bulk accounts could lead to negotiated lower fees), and the specific industry involved.

The main advantage of a contingency fee arrangement is that you only pay the collection agency if they successfully recover your debt. This incentivizes the agency to work diligently on your behalf to maximize results. Since they don’t get paid unless you do, they are highly motivated to give their best effort. Additionally, with a contingency-based collection agency, you won’t have to pay any upfront fees while your debt remains outstanding.

Hire a Debt Collector with a Flat Fee: A Fixed Cost Approach

In contrast, some collection agency fees are charged on a flat, one-time payment per account, regardless of whether the debt is successfully recovered or not.

While pricing is a critical factor to consider when hiring a debt collection agency, it’s not the only one. The performance and track record of the agency are equally essential for a successful outcome. Opting for a low-priced agency that delivers inadequate results can be a costly mistake in the long run. It’s better to invest in a reputable and proficient collection agency, even if their fees may seem relatively higher, as their results will ultimately save you money and instill confidence.

At Monetaria, our experienced debt recovery attorneys offer a transparent pricing model, clearly outlining our contingency-based fees, making it easy for you to understand exactly what you’ll be paying.

Always remember that hiring the best collection agency with a proven track record can make all the difference in successfully recovering your debts. So, weigh your options wisely and choose a collection agency that delivers results, while providing transparency and clarity in all of their services and communications.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.

B2B Collections

7 Reasons to Use a Debt Collection Agency

Post author By Tzali Reicher
Post date July 2, 2024

If you’re a business struggling with cash flow and outstanding invoices, it’s important to know you’re not alone, and hiring a debt collection agency can be a solution to this problem.

Here are 7 reasons why using a collection agency is a smart choice for your business:

1. Reduced Stress:

Collecting money that is owed to you can be a stressful and frustrating experience, especially for small business owners. When cash flow is threatened by delinquent clients and it looks like your business is on the ropes, continuing to focus on your business can be difficult when you feel you’re not seeing reward for your effort. Partnering with an experienced third-party debt collection agency can take that stress off your shoulders, and leave you secure in the knowledge you’re in good and capable hands.

2. Save Time and Resources:

Collecting debts can be a time-consuming and resource-intensive process, especially for businesses with limited staff or expertise in debt collection. By outsourcing this task to a collection agency, businesses can free up time and resources to focus on other critical tasks, and focus on developing the business instead of chasing outstanding payments.

3. Expertise and Experience:

Collection agencies specialize in debt collection and have the necessary knowledge and experience to navigate the legal and regulatory landscape surrounding debt collection. They also have access to advanced tools that can help them locate and communicate with debtors more effectively and efficiently.

4. Higher Recovery Rates:

Collection agencies often have higher recovery rates than businesses collecting on their own because they have established relationships with debtors and know how to negotiate payment plans and settlements that benefit both parties.

5. Legal Protection:

Debt collection is subject to numerous state and federal laws and regulations, and failure to comply with these guidelines can result in legal and financial consequences for businesses. A collection agency can ensure that all debt collection efforts comply with these regulations, protecting the business from legal liability. Hiring a third-party debt collection agency with experienced debt collection attorneys on board (like Monetaria!) is often a smart choice.

6. Maintaining Positive Business Relationships:

Debt collection can be an uncomfortable and confrontational process. By using a collection agency and outsourcing this difficult process, businesses can maintain positive relationships with these parties while still recovering the outstanding debt.

7. Hiring a third-party collection agency:

While hiring a collection agency may seem like an added expense, it can actually be a cost-effective solution in the long run. By outsourcing debt collection to a professional agency, businesses can recover more of their outstanding debt than they otherwise would have and improve their cash flow, ultimately increasing their bottom line.

We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on debt recovery and collections, to ensure your business gets paid.

Led by a team of experienced commercial debt collection attorneys, Monetaria has helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!