Tag: Debt Collection

How To Work With A Debt Collection Agency

Post author By Tzali Reicher
Post date March 1, 2023

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!

Tags commercial collections, Debt Collection, Debt collection lawyers

Collection Tips

How To Hire A Debt Collection Agency

Post author By Tzali Reicher
Post date February 27, 2023

If you’re a business owner or manager, it’s likely you’ve had to face the reality of trying to recover payments from delinquent customers and clients who don’t pay their bills. While the occasional late payment- while irritating- is to be expected, if it becomes a regular occurrence, missed payments can be exceptionally harmful to the long-term health of your business, and it may be time to consider hiring a debt collection agency.

A debt collection agency can provide valuable services in helping a business retrieve the money it’s owed, but it’s important to do your research. In a saturated industry filled with murky ethics and gray lines, it can be hard to choose the right debt recovery agency for your needs that also reflects your values.

Here are 5 tips explaining how to hire a debt collection agency:

When you’ve found a debt collection agency that interests you, perhaps referred by a friend or you found one online, it’s important to do your research.

Step 1: Make sure the agency is compliant with federal and state laws

It is absolutely imperative that any debt collection agency you work with understands and is compliant with all relevant federal and state laws related to debt recovery. Working with an agency that has experienced debt collection lawyers on staff (like Monetaria!) is a great way to reassure yourself that everything will be legally compliant and above board. Be sure to also confirm that the debt collection agency you hire is properly licensed as a debt collection agency.

Step 2: Consider the agency’s fee structure

When hiring a debt collection agency, it’s important to consider their fee structure and whether that works for you. Many agencies use a percentage-based fee structure, which means that the amount you’ll pay the agency is based on the amount of money they recover from your delinquent customers. It’s important to ask questions about the fee structure and make sure it’s something you can afford.

Step 3: Get references

Before making your final decision, it’s important to get references from other businesses that have used the agency. Ask for references from businesses that are in a similar industry and have similar needs to yours. This will help you make sure the agency is reputable and will be able to get results.

Step 4: Ask questions

It’s important to ask the agency a lot of questions before hiring them. Ask about the strategies they use to collect a debt, how long they’ve been in business, and their success rate. It’s also important to ask about their customer service policies and any complaints filed against them.

Step 5: Read the contract carefully

Before signing a contract with a debt collection agency, it’s important to read it carefully and make sure you understand all the terms and conditions. Make sure you’re comfortable with the payment structure, the timeline, and any other stipulations in the contract.

Following these steps will help ensure you hire the right debt collection agency for your business needs.

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.

Tags commercial collections, Debt Collection, Debt collection lawyers, merchant cash advance collections

Merchant Cash Advance Collection

How MCA Companies Can Collect Defaulted Advances

Post author By Tzali Reicher
Post date February 26, 2023

As a leading merchant cash advance collections agency, Monetaria’s mission is to help our clients recover what is owed to them. Serving many businesses in the merchant cash advance, we are uniquely positioned to understand the challenges of funding businesses that may look to default on their obligations and attempt to block our clients from collecting their payments in an efficient and effective manner.

In this article, we’ll share our insights on the process of collecting defaulted merchant cash advances.

What Happens When a Merchant Cash Advance Goes into Default?

Defaulting on a merchant cash advance generally means that the business that was funded is generating sufficient revenue to satisfy the terms of the merchant agreement with the funder but chooses to obfuscate its contractual duties to continue delivering as per the terms of the agreement. Another way a merchant can default is by not communicating with the funder that their revenue has decreased and that they need to reconcile their payments commensurate with their current revenue stream.

Completely defaulting on an advance is typically a last resort. Other- more productive- ways of managing a payment plan a merchant can’t keep up with is communicating their difficulties with their funder and restructuring the payment plan along terms more commensurate with the revenue they are presently generating, or in more dire circumstances, renegotiating the amount owed in more dire scenarios.

When the business advanced starts blocking or bouncing payments, and stops communicating with the funder about their declining revenues and intentions, this is usually considered a default according to the terms of most merchant agreements. In other words, the obligation is on the merchant to notify the funder that their revenue has declined.

When the merchant defaults, the funder may be moved to pursue methods to collect what is outstanding, such as hiring a third-party collection agency with experienced merchant cash advance collectors or onboarding a debt collection attorney to collect what they’re owed through the courts. In some cases (like Monetaria), a number of collection agencies have experienced commercial debt collection attorneys on staff, to easily pursue legal remedies if it becomes necessary.

How to Collect A Defaulted Merchant Cash Advance?

At our collections agency, we understand that businesses defaulting on an MCA you advanced can put your funding business in a difficult position. That’s why we recommend reaching out to experienced debt recovery and collection agencies capable of exploring all available angles if you find yourself needing to recover funds.

At Monetaria, our team of experienced commercial debt recovery experts and attorneys work tirelessly to help MCA companies collect on defaulted advances. Our collection process is designed to be efficient and effective, using a combination of legal, financial, and technical strategies to ensure that debts are collected and businesses are able to continue operating.

We believe in a fair and transparent approach to collections and always work closely with our clients to ensure that they understand the process and are comfortable with the steps we are taking to collect their debts. Whether through negotiation, settlement, or legal action, we strive to achieve the best possible outcome for our clients.

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.

Tags Debt Collection, Debt collection lawyers, merchant cash advance collections

B2B Collections Collection Tips

Commercial Debt Collection For Beginners

Post author By Tzali Reicher
Post date February 24, 2023

Business owners are often far too busy running their businesses to actively chase vendors and customers to pay their invoices, but if you’re not getting paid the money you’re owed, the business will quickly find itself without the cash flow needed to continue, much less grow and scale up.

Knowing how to collect what you’re owed is crucial to ensure the financial stability and success of your business. Here is a guide to commercial debt collections for beginners:

What is Commercial Debt?

Commercial debt is a business-to-business transaction debt collection transaction:

Your business provided products or services to another business for it to be able to provide its own services and now needs to collect payment for it. Commercial debt is a common way for businesses to access capital and product, but it must be managed carefully in order to ensure that the company remains solvent and can repay what it owes in a timely manner.

How To Collect Commercial Debt?

In an ideal world, everyone would promptly pay their creditors quickly and easily, but we don’t live in a perfect world.

If a business is withholding payment, the creditor has several options: they can reach out and offer a payment plan, negotiate the amount owed, or pursue more aggressive methods, such as hiring a third-party collection agency with experienced commercial debt collectors or onboarding a debt collection attorney to collect what they’re owed through the courts. In some cases (like Monetaria), a number of collection agencies have experienced commercial debt collection attorneys on staff, to easily pursue legal remedies if it becomes necessary.

Why Hire a Debt Collection Agency?

There are many reasons to hire a third-party debt collection agency to help you recover your business-to-business debt. They include (but are not limited to):

Experience and Expertise: A debt collection agency has the expertise and resources to effectively collect outstanding debts that may be difficult for you to recover on your own.

Save You Time and Energy: Collection efforts can be time-consuming and require a lot of effort. Hiring a debt collection agency can free up your time and resources to focus on doing what you do best while letting them handle the intricacies of debt collection.

Tactful and Professional Approach: Collection efforts can be delicate and a debt collection agency can handle the process professionally and tactfully to avoid damaging your customer relations.

Ensure legal compliance: A debt collection agency is familiar with the laws and regulations surrounding debt collection and can help ensure your efforts are compliant with the law.

Increase your chances of collecting the debt: A debt collection agency has experience and expertise in negotiating with debtors and has a higher success rate in collecting outstanding debts compared to businesses trying to collect on their own, without the resources and knowledge of an experienced firm.

Selling Debt To A Collection Agency

Another way of handling a debt owed to you is selling and offloading it to a collection agency.

This means you are transferring ownership of the debt from the original creditor to the collection agency, who will then attempt to collect the debt from the borrower and keep what they can collect.

This is usually done when the original creditor has been unable to collect the debt and just wants to get an even smaller sum so they can move on. The sale of the debt is typically done at a discount, with the collection agency paying a lower amount for the debt than what is owed, reflective of their chances of recovering the full sum.

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.

Tags commercial collections, Debt Collection, Debt collection lawyers

Collection Tips

How Does Merchant Cash Advance Collections Work?

Post author By Tzali Reicher
Post date February 22, 2023

Many small businesses often turn to merchant cash advances (MCAs) when they need extra cash to supplement their cash flow, invest more capital in their business, or whenever they are in a pinch. The process of obtaining an advance is often quick, sometimes taking only one or two days, which can be attractive to a struggling business. However, MCAs can be expensive, which can make it easy for merchants to fall into a cycle of debt or miss payments. So,

what is merchant cash advance collections and how does it work?

When a merchant cash advance business needs assistance collecting payments on outstanding balances, they often turn to a third-party collection agency- like Monetaria- to help them with their debt recovery. These agencies typically have extensive experience in recovering outstanding receivables and use a variety of tactics to get deliver for our clients. This may include negotiations, developing payment plans, and even legal action. They handle the case, utilizing their expertise and knowledge, which allows their clients to focus on growing their businesses instead of worrying about how to get paid.

A third-party collections agency might also attempt to seize a merchant’s assets, and levy their business bank accounts. On behalf of the funder, they may work to freeze their personal and business banking accounts, contact a business’s vendors or brokers and merchant processors to convince them to pay the collection agency directly since the business has defaulted on their loans, and if the merchant is using a payroll company, the MCA funder may also attempt to interfere in that arrangement.

It is incumbent on a business to understand what they are agreeing to when applying for a merchant cash advance and have a payment plan in place. Because they may be a riskier financing proposition, many MCA companies protect their capital by including personal guarantees and liens on receivables in the contract, in case they need to put the account into collections to recover funds.

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’s 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. Monetaria is the number one solution for businesses looking to recover debts in the merchant cash advance and commercial debt space. With our innovative approach, experienced team, and commitment to customer service, we have established ourselves as the go-to choice for businesses looking to get the money they are owed. If you are a business owner struggling to recover money, don’t hesitate to reach out to Monetaria for assistance: we have the expertise and resources to deliver the results you need.

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.

Tags commercial collections, Debt Collection, Debt collection lawyers, merchant cash advance collections

What is Monetaria?

Post author By Tzali Reicher
Post date February 8, 2023

What is Monetaria?

Monetaria is a debt recovery and collections agency that specializes in merchant cash advance collections and commercial debt recovery and has quickly established itself as the number one solution for merchant cash advance funders and other businesses looking for a debt collection partner.

With over 10 years of experience and led by a team of renowned commercial debt collection attorneys, Monetaria has risen to the top of the industry thanks to its innovative approach to debt recovery. We understand that each case and circumstance is unique and requires a personalized approach in order to be effectively recovered, which is why we offer a range of services designed to meet the needs of businesses of all sizes.

There are two primary collections services Monetaria is perhaps most known for:

The first is our merchant cash advance collections program. This program is designed specifically for merchant cash advance businesses that have outstanding payments on advances, delinquent clients or multiple defaults. When MCA companies are ready to recover the debt and partner with a third-party collections agency, Monetaria is there to help.

Commercial collections– or business-to-business debt collection- is another important debt recovery service Monetaria offers. This program is designed for businesses looking to recover debts from other businesses who are neglecting payments and invoices and has seen hundreds of major companies recoup payment for their services rendered or products sold.

The team at Monetaria has extensive experience in recovering outstanding receivables, and we use a variety of tactics to deliver for our clients. This may include legal action, negotiations, and even mediation. Whatever it takes, within the confines of the law, Monetaria is committed to helping businesses recover the debts they are owed.

A key advantage of working with Monetaria is our cadre of experienced professionals, which includes debt collection lawyers, collectors, and other experts who are well-versed in the complexities of the debt recovery process. This diverse and highly skilled and effective team ensures we are able to provide a level of service that is simply not possible with other debt recovery companies.

On top of our single-minded focus on each client’s case, customer care and communication are core values for us. From our lengthy experience, we understand that recovering debts can be a stressful and overwhelming process, and do everything we can to make it as easy and hassle-free as possible for our clients. This includes providing regular updates on the status of the recovery process, always being available to answer any questions clients may have, and working closely with them to develop a customized recovery plan that meets their specific needs.

Monetaria is the number one solution for businesses looking to recover debts in the merchant cash advance and commercial debt space. With our innovative approach, experienced team, and commitment to customer service, we have established ourselves as the go-to choice for businesses looking to get the money they are owed. If you are a business owner struggling to recover money, don’t hesitate to reach out to Monetaria for assistance: we have the expertise and resources to deliver the results you need.

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

Tags Collection Terms, commercial collections, Debt Collection, Debt collection lawyers, merchant cash advance collections

B2B Collections

The Complete List of Debt Collection Terms You Should Know

Post author By Monetaria Group
Post date January 11, 2022

Debt recovery is all about staying proactive to stay out of trouble. Before you dive into finessing your bulletproof collection strategy, let’s brush up on some of the most used terms in the biz.

A Definitive Glossary of Essential B2B Collection Terms (and Why They Matter)

Account

A record or file of a debt, opened when you contact a recovery specialist. An account is what you’ll need to reference during the recovery process.

Arrears

A debt that is unpaid or overdue. This is a legal term that will come up often.

Charge Off

Any amount of an account that you no longer expect to be paid. The money is written off as a bad debt for accounting purposes even though the debt is still owed. Note that a charge off will appear on a client’s credit report. This is a last resort option for the creditor.

Collection

The process, from the moment your invoice goes overdue, of seeking money that you are owed.

Creditor

The person who is owed money (that’s you). In legal proceedings, they may be referred as the plaintiff.

Credit Report

A record of a client’s credit history, as reported by creditors and other financial bodies. If there is inaccurate information due to circumstances including identity theft, a client can dispute their credit report. Credit reports are crucial to debtors and may include details of:

Employment
Addresses
Credit inquiries
Credit cards and loans
Accounts
Liens
Wage garnishments

Damages

The amount of money claimed that is yet to be calculated.

Debtor

The person who owes money (your client). In legal proceedings, they’re known as the defendant.

Default

Also called defaulting on a debt. This occurs when a client fails to meet the repayment obligations on a debt, either when they miss payments or stop making payments.

Default Judgment

A court judgment that is made when someone did not file a defense and the plaintiff (creditor) obtains a judgment from the court.. In this case, the debtor will be sent a notice of default.

Delinquent Debt

An account on which a payment is past due. You can report any delinquent account to a credit bureau. Note that when an account turns delinquent, it’s possible to charge off the account.

Garnishment

Through a court order, you can force a debtor’s employer to withhold a portion of the debtor’s wages or bank account to pay an outstanding account.

Interest

The cost of borrowing money or buying goods or services on credit. It is typically calculated as a percentage of the amount due.

Invoice

An itemized list of goods shipped or work complete, oftentimes specifying the price and the terms of sale.

Principal

The initial amount of the debt or the amount that remains unpaid by a consumer. It does not include collection fees and interest.

What’s Next?

Now that you’ve (re)familiarized yourself with the lingo and terminology, it’s time to get to work on a solid strategy. Check out our expert tips on how to devise a collection plan that works for you. If those don’t cover it and you’re still waiting to get paid, then give us a holler, day or night.

Tags Collection Terms, Debt Collection, Debt Terms, Terms