Category: Collection Tips

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B2B Collections Collection Tips

What Legal Changes Affect Business Debt Collection: The Telephone Consumer Protection Act in 2024

When to Escalate a Debt Collection Case to Legal Action?

 

Collecting a debt is often more complicated than it may appear, especially with the many state and federal laws and regulations impacting the debt collection industry.

One of the most prominent–and therefore misunderstood–debt collection regulations affecting the industry is the Telephone Consumer Protection Act, which has seen enforcement expansions in recent years.

Here is a brief summary of how the regulations impact debt collectors and what the Telephone Consumer Protection Act is, from the debt collection and recovery experts at the Monetaria Group, as well as recent changes that may affect their enforcement.

What is the Telephone Consumer Protection Act?

The Telephone Consumer Protection Act (TCPA) was enacted in 1991 to regulate different forms of telephone communications, when this new method of human connection exploded into popularity and marked the beginning of the technology boom we’ve seen in the three decades since. 

The Telephone Consumer Protection Act covers solicitation calls, auto-dialed calls, pre recorded calls, text messages, and unsolicited faxes (maybe that’s not so relevant these days). The TCPA also prohibits non-emergency calls through an “automatic telephone dialing system” (ATDS) without prior express consent, and applies to cell phones, paging services, and services where the recipient is charged for the call, as well as residential telephone lines using artificial or prerecorded voices, unless specific exemptions are met. An ATDS, as defined by the TCPA, includes equipment capable of storing or producing telephone numbers using a random or sequential number generator and dialing such numbers.

READ MORE: What is a Debt Recovery Attorney?

What Is The Impact Of The Telephone Consumer Protection Act For Debt Collection?

The Telephone Consumer Protection Act (TCPA) significantly influences debt collection practices, particularly in the realm of calls to cell phones. The requirement for “prior express consent” lacks a precise statutory definition, relying instead on various court rulings and Federal Communications Commission (FCC) decisions. Generally, debt collectors secure consent if the debtor provided their wireless number to the creditor during the transaction resulting in the debt owed. Despite the TCPA’s silence on the matter, court decisions affirm the right of recipients to revoke consent verbally or in writing.

In cases of TCPA violations, the act establishes a civil cause of action enabling recipients to seek damages. The recipient can recover the actual monetary loss suffered or $500 for each violation, whichever is greater. If the violation is deemed willful, the recipient may be entitled to three times the regular damages. Additionally, enforcement falls not only to the FCC but also to state attorneys general. However, before the FCC can impose monetary penalties on a party without an FCC license or authorization, it must first issue a citation warning the party of the impending consequences.

The landscape of the Telephone Consumer Protection Act (TCPA) underwent significant shifts with the issuance of the FCC’s Declaratory Ruling and Order FCC 15-72 on July 10, 2015. This order introduced several key changes to the interpretation and enforcement of the TCPA. Notably, it expanded the definition of “calls” to include text messages, reflecting the latest trends in communication practices, providing a broader scope of protection for consumers. The order also clarified that consumers have the right to revoke consent for calls and text messages sent from Automatic Telephone Dialing Systems (ATDS) in any reasonable manner at any time.

The FCC order also addressed the issue of reassigned phone numbers, stating that consent is no longer “inherited” from the previous owner after a single call. Callers must cease contact if the number has been reassigned, emphasizing the need for accurate recipient information. The interpretation of an ATDS was broadened, encompassing not just the device’s present capabilities but also its potential functionalities. The order clarified that an ATDS need not be actively using a random or sequential number generator to fall under the TCPA’s jurisdiction. These changes, although not exhaustive, underscore the dynamic nature of TCPA regulations and the need for organizations to stay abreast of evolving compliance requirements.

READ MORE: When Is It Time To Hire a Debt Collections Agency?

How to Ensure Your Debt Collection Complies With The Law

To ensure your work to recover funds owed to you is completely legal and above board, if you’re doing it yourself, make sure to read the latest news and advances in the debt collection law space and speak with debt collection lawyer-friends to make sure you’re doing everything right. If you’re working with a collection agency or debt recovery attorney-or both, like Monetaria, for example-do your research before engaging their services and ask for references to make sure they have a history of effective, legal and ethical debt collection practices.

 

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 lawyers for debt collection and 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!

 

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B2B Collections Collection Tips

How to Send Someone to Collections

Sending a client or partner to collections for past due or outstanding invoices can be tough, but getting the money you’re owed is necessary to ensure your own business’s survival and posterity.

This comprehensive guide from the expert Monetaria team outlines the collections process: when you can send someone to collections, how to send someone to collections, the rules for sending someone to collections, and how much does it cost to send someone to collections.

 

When Can You Send Someone to Collections?

If you’ve got clients with outstanding bills, don’t send them to collections immediately. Be proactive and over communicative, and offer to accommodate them and work out a payment plan with the customer before taking more compelling action. See if they’re willing to pay over a set amount of time, or make a lump sum payment at a discounted rate. A move like this fosters good will between parties and increases your chance of actually getting your money back at a much quicker pace than sending the matter to collections.

You can send someone to collections when you feel the collections route is inevitable—perhaps because of a stop in communications or stated refusal to pay what they owe— and you’ve given the client formal notice of how much they owe and have given them at least 30 days to pay the debt. Keep a record of this communication for future reference to prove that you followed the proper procedures if there is any dispute.

 

Related: What is Commercial Debt Recovery and Collection?

 

Rules for Sending Someone to Collections:

There are a couple of rules for sending someone to collections to consider before initiating the process:

You should give the client formal notice and a payment window. Some collections experts recommend waiting 90 days after the invoice is due to send them to a collection agency, but most experts say that waiting 90 days decreases your chances of successful collections.

Additionally, keep records of all correspondence between you and the client, to ensure a collections agency—and potentially, a court—can track your business together and compel payment.

How to Send Someone to Collections:

Before you send someone to collections, you’ll need to have all the necessary documentation. This includes any invoices, receipts, contracts, or other documentation proving the debt’s existence, as well as copies of emails, texts or call records proving your attempts to collect the payment privately. You’ll also need the contact information for the person or business you’re trying to collect from.

 

Related: How to Choose a Debt Collections Agency

 

Once you have everything in order, you can begin shopping for a collections agency that meets your needs and then turn the case over to them. They’ll take over everything and employ a number of methods to efficiently collect what you’re owed using their industry experience and expertise, including sending demand letters, offering payments and, if necessary, going to the courts to access bank accounts, garnish payments, or other ways to collect money on your behalf.

How Much Does It Cost to Send Someone to Collections?

The actual cost to send someone to collections depends on the debt collection agency you work with. That being said, the standard debt collection fee is between 20% to 50% of the total amount the collections agency gets back for you. Because debt collectors only get paid a percentage of what they collect for yout, most debt collection agencies will not take on a case that is below a certain dollar amount, such as $1,000, for example. However, you might find that some collection agencies will collect a debt as low as $500.

 

Related: How Much Do Collection Agencies Charge?

 

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!

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B2B Collections Collection Tips Loan Advice Merchant Cash Advance Collection Uncategorized

How to Hire a Cash Advance Debt Collections Agency: 5 Essential Tips

Business owners or managers of merchant cash advance companies understand how challenging dealing with delinquent customers who consistently fail to pay their advances can be.

Late payments can harm your business’ long-term health and harm your ability to invest further in your business. When all of your in-house debt recovery solutions aren’t working, it is essential to consider hiring a third party debt collection agency, knowledgeable in the merchant cash advance space and with experienced debt collection lawyers on staff. 

However, with a saturated industry filled with ethical concerns, finding the right agency that aligns with your values requires careful research. 

Here are five vital tips on how to hire a cash advance debt collection agency:

Step 1: Check out their credentials and legal compliance.

The first and most crucial step is to ensure that the debt collection agency complies with all federal and state laws related to debt recovery, and that they have deep and proven experience in your field. Doing this maximizes the chances of a successful recovery, and working with an agency that has experienced debt collection lawyers on staff can offer reassurance that they follow legal guidelines, and verifies that the agency holds the proper licenses as a debt collection agency.

 

Related: Debt Collection Lawyer or Agency: Which One to Choose?

Step 2: Evaluate the Fee Structure.

Consider the agency’s fee structure and determine if it fits within your budget. Many agencies use a percentage-based fee structure, where their payment depends on the amount of money they recover from delinquent customers, while others employ a flat fee model. It’s vital to inquire about the fee arrangement and ensure it is affordable for your business.

Step 3: Research, References and Requests

Before making a final decision, it’s important to do your due diligence. Ask the agency for references from other businesses that have used their services. Seek references from businesses in a similar industry and with comparable needs to yours, and this will help you assess the agency’s reputation and ability to deliver results. Don’t hesitate to ask the agency various questions before hiring them. Inquire about their debt collection strategies, years of experience in the industry, and success rate. Additionally, ask about their customer service policies and if any complaints have been filed against them.

 

Related: How To Hire A Debt Collection Agency

Step 5: Review the Contract Thoroughly.

Carefully read and understand all terms and conditions before signing a contract with the debt collection agency. Ensure you are comfortable with the payment structure, timeline, and any other stipulations outlined in the contract.

Following these steps will help you find the right cash advance debt collection agency to suit your business needs, and help you successfully recover the funds you’re owed.

Related: Working with a B2B Debt Collector in 2023: What You Need to Know

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 cash advance invoices 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!

 

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B2B Collections Collection Tips

How to Collect Unpaid Invoices and Outstanding Bills

How to Collect Unpaid Invoices and Outstanding Bills

Business owners know how crucial it is to get paid for the hard work they put in. When invoices are left overdue and unpaid, it can cause cash flow problems that threaten a business’ ability to operate and serve its clients, and understanding how to collect past due invoices and unpaid bills is essential to ensure your businesses survival.

Let’s dive in to Monetaria’s 5 step guide on how to collect unpaid invoices from customers:

Step 1 — Identify Overdue Invoices: 

First things first, you’ll want to keep track of those pesky unpaid invoices. With the help of your in-house bookkeeper or accounting software of choice, it shouldn’t take too long once a month to identify past due accounts and unpaid bills that need to be collected.

Step 2 — Send a Courteous Reminder Email: 

We’re all human, and sometimes things slip through the cracks. So, having identified which customers have outstanding invoices, start with a courteous follow-up email to gently remind the client about the overdue payment, in a personal way that offers them the benefit of the doubt and dignity to make it right. Providing multiple payment options and ensuring a smooth process can make a significant difference in ensuring you get paid.

Related: A Step by Step Guide to the Commercial Debt Collections Process

Step 3 — Reach Out via Text or Social Media: 

In case the first email gets overlooked, after a number of days, you can take a slightly more direct approach to get in touch with the client who has overdue invoices. A quick text or a message on social media to the right person often grabs their attention and gets the ball rolling.

Step 4 — Send a Final Reminder Email and Make a Final Phone Call:

If the previous steps didn’t yield results and it appears the person is ignoring your emails and hoping you fade away , shift gears and send a more assertive email.  Lay out all the accommodations you have made for them and the many ways you’ve tried to connect with them to sort out the issues. Tell them that because of the unpaid invoice and lack of communication, you are now taking steps to apply late fees, stopping all work until they pay their overdue bills, or sending them to collections. 

Even while taking a tougher approach, you can still offer methods of reconciliation and opportunities to reach a mutually beneficial outcome for both parties. 

Step 5 — Pursue Legal Means and Debt Recovery Solutions: 

If all else fails, it’s time to step up the game. If the payment is still outstanding after your best efforts to sort it out independently, it might be time to accept that the client won’t come through without getting other people involved. In this case, businesses usually contact a third party debt collections agency to handle the matter further.

Related: How to Recover Financial Control with Debt Collection Agencies

Remember, communication and offering solutions are key throughout this process. If doing it in house isn’t working, debt recovery specialists like Monetaria are always here to help you collect unpaid invoices, outstanding bills, and all the money owed to you.

 

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!

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B2B Collections Collection Tips Merchant Cash Advance Collection

Dealing with Merchant Cash Advance Collections? 4 Ways to Get Out of MCA Debt

Dealing with Merchant Cash Advance Collections? 4 Ways to Get Out of MCA Debt

Merchant cash advances can help small businesses get funding in a pinch, but sometimes delivering the receivables to the funder proves difficult. Letting the business that gave you the advance (or the MCA collection agency) know that you need time and help to deliver as promised on your MCA debt can be intimidating.

To help you face your issues with merchant cash advances head-on, here are four strategies to help you pay them off quickly:

Make a lump-sum payment from “local resources.” Instead of defaulting or seeking another MCA to fund your last one, consider paying it off with funds you have available, or those you can obtain at better rates. Savings, a personal loan from a friend or relative, venture capital, or selling items you don’t need are all good ways to get cash fast. Whatever source of funding you choose to pay off your MCA debt, make sure that it has low interest rates and will not harm your credit rating. 

Renegotiate the advance proactively. MCAs aren’t loans, so it may be possible to adjust the total amount owed and monthly payments. Explain your current financial situation to the MCA company and ask if they would be willing to reduce the gross sum and monthly payment amount. 

Work out a payment plan. Even if your funding provider or MCA collection agency can’t adjust the total amount owed, they may be able to work with you to establish a payment plan. Open communication is important when negotiating either with merchant cash advance collections, or directly with your funder. Be honest with them and they may be able to revisit the timeline of the advance or explore other options to help you stay on track. It helps to be proactive and approach the MCA collection agency with a manageable plan of your own that takes into account any financial difficulties you may have. 

Consider invoice factoring. Work with an invoice factoring company that will buy your unpaid business invoices at a lower price. They will advance up to 85 percent of your invoices, which can help you deal with your MCA debt.

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

Ready to read more about MCAs? Check out these articles:

 

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!

 

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B2B Collections Collection Tips Uncategorized

How To Recover Unpaid Invoices: Commercial Debt Collection FAQ’s

How To Recover Unpaid Invoices: Commercial Debt Collection FAQ's

What can you do to collect unpaid debts?

Business debt collection practices aim to simplify the management and retrieval of late payments while expediting the process. However, there are no rigid rules regarding these practices, as your approach will depend on your specific history with each customer and the reasons behind their overdue payments. 

Before hiring a professional, consider these basic methods for collecting overdue debts. Let’s explore some options:

  • Check if there were any problems: Verify if the customer received the invoice, or if it was unclear or did not meet their requirements. Confirm if the goods were delivered correctly or if there was an error in the address, and double check your system delivered the invoice correctly.
  • Act promptly: Overdue invoices should be addressed immediately. The longer an invoice remains outstanding, the harder it is to collect. 
  • Contact the customer: Before seeking outside help, contact the person who owes you money directly, and keep a record of all communications and receipts. 
  • Offer solutions: Consider the possibility that the customer is experiencing financial constraints, in which case they may be open to a repayment schedule. By establishing a rapport with the customer. emphasizing the importance of your invoices, and showing your interest in helping them as well, you increase the likelihood of prioritized treatment and prompt payments.

 

When should you seek outside help?

If your efforts to collect the debt on your own have been unsuccessful, consider getting assistance from a business-to-business debt collection agency or a debt recovery attorney. These agents specialize in collecting debts on behalf of businesses like yours, and can help with contacting the delinquent client, negotiating repayment options, and exploring legal remedies. They work as middlemen between you and the customer, taking a percentage of the collected amount as payment for their services.

Can I hire a lawyer for commercial debt collection?

Yes, you can hire a debt collection lawyer for business-to-business debt collection. A debt recovery lawyer can advise you, assist through the legal process, and represent you in court. The entire debt should be balanced against the expense of legal representation.

 

Is legal action a good option for business to business debt collection?

Yes, but explore other options first. Legal actions can take a long time and cost a lot of money, and you can never be sure of the outcome. Before going to court, knowing how debts are collected in your country according to the law is important.

 

Can debt collectors contact your diligent clients anytime and anywhere?

No, debt collectors are bound by certain rules regarding when and how they can contact you about covered debts. There are also ways to stop a debt collector from contacting you if needed.

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!

 

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B2B Collections Collection Tips

When Is It Time To Hire a Debt Collections Agency?

When Is It Time To Hire a Debt Collections Agency?

 

When it comes to managing finances, one of the most important things to do is to make sure that customers pay on time for the business to have consistent cash flow. 

Unfortunately, not all customers make their payments on time, which can result in problems for your own businesses, your vendors, and your ability to operate. In situations like these, seeking the services of a debt collection agency may help avoid these issues. 

When Is It Time to Hire a Debt Collections Agency?

One of the main signs that it’s time to hire a debt collection firm is when accounts are past due and payment reminders are ignored. It is a sign that you may require the assistance of a professional and when this occurs. Working with a debt collection agency can help recover unpaid bills, improve your company’s cash flow, and ensure your businesses financial security.

Related: Debt Collection Lawyer or Agency: Which One to Choose?

How to Choose the Right Debt Collections Agency?

Finding the most reputable debt collection agency is necessary to guarantee the best results. Conducting thorough research and screening procedures on potential  agencies is important. You should inquire about the agency’s industry expertise and their  adherence to federal and state rules surrounding collection activities. You should also ask for references. The chosen collection agency should communicate and report openly and honestly, keeping you informed of the current state of the debt collection activities.

Related: How To Hire A Debt Collection Agency

Why Should You Hire a Debt Collections Agency?

Businesses struggling to be paid back will get a lot of value and benefits by hiring a debt collection service. Here are the some key advantages:

  • Better cash flow:

  • Unpaid debts affect a business’s cash flow, not only slowing its ability to grow and develop, but to continue providing their ‘good’ clients the services they are paying for. A debt recovery will help a business get back what is theirs and secure their financial stability.

  • Save time and money:

    It can take a lot of time, energy, and money to go after people who owe you money, which takes time away from your business’s main tasks. A debt collection agency can handle the collection process, giving companies more time and resources to focus on work that brings in money.

  • Less chance of legal problems:

    Collecting unpaid debts on your own can be risky. Businesses can find themselves in trouble with the law if they break debt collection laws or don’t follow the rules. Experienced and licensed  debt collection agencies- like Monetaria- understand how the law works and operate within those boundaries to get the best results for their clients.

Related: How To Work With A Debt Collection Agency

Costs of Hiring a Debt Collections Agency

In most cases, the cost of hiring a debt collection agency varies by the kind of service provided alongside the payment structure. Debt collection agencies may charge hourly rates, flat fees, or contingency fees as payment for their services. Before engaging an agency, it is important to thoroughly understand the associated charges to prevent any unwelcome surprises later on.

We advise that businesses hire a debt collection service if they have debts that haven’t been paid, especially if they are more than 90–120 days late. When choosing an agency, look at their experience, image, and pricing and make sure they prioritize ethical and professional conduct. Also, it’s advisable that companies should have good credit and payment policies, talk to customers regularly, and keep track of reports on outstanding debts to reduce the need for debt collection agencies.

As the global economy recovers from the    COVID-19-induced economic slowdown, the need for debt collection agencies will likely grow, especially in industries like financial service providers, travel and hospitality companies, and others that were hit the hardest by the crisis. To continue offering reliable and efficient services to their clients, businesses must be prepared to employ the necessary tactics to collect what is owed to them, and know when it is time to hire a debt collections agency.

 

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!

 

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B2B Collections Collection Tips Merchant Cash Advance Collection Uncategorized

What Is A Debt Recovery Attorney?

Debt collection is an important aspect of business and financial management. Companies rely on timely payments from their clients to maintain their cash flow and financial stability, and when clients fail to pay their invoices, it can lead to a lot of problems, especially for small businesses. This is where debt collection attorneys come in.

Related: What is Commercial Debt Recovery and Collections?

What is a debt collection attorney?

A debt collection lawyer is a legal professional who specializes in helping businesses recover unpaid debts from nonpaying clients. These attorneys are skilled in developing strategies to recover debts and can explore their legal options if necessary. Their work may involve creating plans to collect payments, completing and filing legal paperwork, drafting demand letters, and representing creditors in court. 

When should I hire a debt recovery attorney?

There are several situations in which businesses may need to hire a debt collection attorney. For example, if a debt has been outstanding for a long time and legal action is required to recover it, a debt collection attorney can be a valuable resource. These attorneys are experts in the relevant laws and can help clients navigate the legal system to achieve a favorable outcome.

Demand letters are another effective tool for recovering debts without having to go to court. These letters inform the debtor of the outstanding debt and the legal action that may be taken if the debt is not paid. Debt collection attorneys can help businesses draft effective demand letters that comply with legal requirements and increase the likelihood of payment.

Another situation in which businesses may need to hire a debt collection attorney is when the debtor is a large company. Larger companies typically have more resources to fight against attempts to compel them to pay their debts. Debt collection attorneys who specialize in corporate debt collection can be valuable allies in these situations.

How to hire a debt collection attorney?

When hiring a debt collection lawyer, businesses should consider several factors. These include the attorney’s fees, their skills and experience in debt collection, their communication style, and whether they work independently or within a firm. References from past clients can also be helpful in assessing an attorney’s qualifications.

In some cases, businesses may opt to hire a collection agency instead of a debt collection attorney. Collection agencies specialize in recovering debts and can often do so more quickly and cost-effectively than attorneys. However, collection agencies cannot provide legal advice or represent clients in court. Businesses should consider the urgency of the situation, the likelihood of client payment, and how invested they are in taking legal action before deciding whether to hire a debt collection attorney or a collection agency. 

There are several third-party collection agencies with commercial debt collection attorneys on staff (like Monetaria!) to assist clients with all potential options at the outset of the project and is the best way to ensure you collect what is owed to you.What is a debt collection attorney?

Related: Commercial Debt Collection for Beginners

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!

 

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B2B Collections Collection Tips

Understanding Commercial Debt Collection

What is commercial debt collection? Here, the Monetaria Group team explains the process of business-to-business debt collection and recovery.

 

What is Commercial Debt?

Commercial debt collection refers to the process of business-to-business debt collection, recovering debts owed by one business to another, such as unpaid invoices or missed repayments. Recovering commercial debt can be a complex process that involves identifyingthe parties involved, determining the terms of the debt, and using legal or other means to collect payment.

There are a few ways for businesses to handle their commercial debt collection. One way is to handle the process in-house, using internal staff or the billing department to handle the invoicing and collections efforts. This team can focus on communicating with debtors and is a good option for small businesses with a limited number of outstanding debts. However, larger businesses may find that they lack the resources to devote to debt collection, or that they simply lack the expertise necessary to collect debts efficiently.

In such cases, businesses may choose to hire 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, and free up the business owners’ time to chase new business instead of over-investing in delinquent clients. Debt recovery and collection agencies use a variety of tactics, such as negotiating payment plans and exploring legal options to try to collect the debt.

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

It is important for businesses to have a clear and effective process in place for recovering unpaid debts. This can help ensure that the company maintains cash flow and avoids financial hardship, and helps protect the company’s relationships with its own customers or suppliers.

Regulation of Commercial Debt Collection

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.

Collection agencies must be licensed and bonded before performing collections in most states, so it is critical to ensure that a third-party agency is qualified and credentialed for commercial debt collections before hiring them. The Monetaria Group is led by a team of debt collection attorneys who ensure that all 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 deciding whether to hire a commercial debt collection agency, businesses should consider factors such as the number of outstanding debts, the resources available for debt collection, and the expertise necessary to collect business debts efficiently. A larger number of outstanding debts or a lack of resources or expertise may make it more efficient to use a third-party agency.

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 one.

Commercial debt collection is a critical aspect of managing a business’s financial health. By having a clear process in place and working with experienced professionals, businesses can effectively recover unpaid debts and maintain a healthy bottom line.

 

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 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!

 

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Collection Tips

How To Work With A Debt Collection Agency

How To Recover Unpaid Invoices: Commercial Debt Collection FAQ's

We get it: you didn’t start your business to spend all your time chasing invoices and people that owe you for services rendered, but collecting payments is crucial to keeping your business on a stable and steady path to growth.

To help collect delinquent payments- at times after trying other means including mediation, suggested payment plans, and renegotiated settlements- business owners often hire a third-party collection agency experienced in debt recovery to assist them.

Working with a debt collection agency offers the business owner access to the resources and expertise of experienced debt collectors and gives the business the best chance of recovering what is owed to them, freeing up time and energy for the owner to continue concentrating on growing their business. Additionally, working with an agency that has debt collection lawyers on staff is helpful if they determine that the best course of action is to pursue an outcome through the legal system while ensuring compliance with state and federal collection regulations.

Here are 3 tips for using the services of a debt collection agency, and the best way to work with them:

1. You should provide them with all the information they need to begin their work.

Even with all their experience and expertise, they can only work with the information you give them. This will include contact information for the debtor, the amount of the debt, any records related to the client and their account, and any other relevant information. Withholding details can hinder your chances of recovering what is owed to you.

2. It is important to maintain regular communication with the debt collection agency throughout the process.

This allows you to stay informed of the progress and ensure that the agency is following the agreed-upon process. You should also inform them whenever something happens related to the debt they are working on recovering occurs (eg: the debtor reaches out to you, they make a payment, etc.) and keep them apprised of any developments on your end.

3. Set realistic goals and timelines:

Collection agencies have an array of tactics available at their disposal to pursue debtors, and it is important to understand the process and how to best work with a debt collection agency to ensure the best outcome for both parties. When setting goals and timelines for a debt collection, consider the amount and age of the debt, and the debtor’s ability to pay, along with the strategy you have chosen to collect with. While debt recovery can be a time-consuming and energy-sapping ordeal, open and honest communication between all stakeholders will make it a considerably more pleasant experience.

 

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.

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 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!