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.
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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.
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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.
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!