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Resource Center
Collection Agency Terms HIPPA Top 15 Ways To Maximise Your CollectionsThe Top 15 Ways To Maximize Internal Collections
1- Have a Defined Credit Collection Policy
One of the major causes of overdue receivables is that the company has not defined to its customers and staff when accounts are to be paid. If customers are not educated that accounts are to be paid on time, then chances are they'll pay late or sometimes not at all. Make sure that your companies terms of payment are clearly stated in writing to each customer.
2- Invoice Promptly and Send Statements Regularly
If you don't have a systematic invoicing and billing system, get one. Many times the customer hasn't paid simply because they haven't been billed or reminded to pay in a timely manner. This situation usually occurs in smaller or newer companies where they're short on staff to invoice and bill.
3- Keep Accurate And Timely Payment Records
Once a new customer is accepted for service, it is vitally important to maintain accurate and timely records on their payment history. If you see any deviation from past payment patterns, and especially if payments become unusually slow, immediate follow-up is warranted. This not only gives you an early alert to impending payment problems, it also gives you the chance for early intervention if there is an outside influence.
4- Use "Address Service Requested"
One of the most difficult collection problems is tracking down a customer who has "skipped". All companies should be aware of a special service offered by the Post Office. Any statement or correspondence sent out from a practice or professional office should have the words "Address Service Requested" printed or stamped on the envelope, just below your return address in the top left corner. If a statement or invoice is sent to a customer who has moved without informing you of their new address, and the words "Address Service Requested" appear on the envelope, the Post Office will research this information and return the envelope to you on a yellow sticker that gives the new address or other updated information. If the customer has placed a "forwarding order" with the Post Office, the Post Office is required to forward the envelope to the customer and send you a form #3547 with the new address and charge you approx. 50 cents. This will keep your address files up to date.
5- Contact Overdue Accounts All the Time
No law says you can contact a customer only once a month. The old adage "The squeaky wheel gets the grease" has a great deal of merit when it comes to collecting past due accounts. It's an excellent idea to contact late payers every 7-14 days. Doing so will enable you to diplomatically remind the patient of your terms of payment.
6- Be Objective Not Subjective
Many customers (or well-meaning people on their staff) have let an account age beyond the point of ever being collected because he or she "felt" the patient would pay eventually. While there are a few isolated cases of unusual situations, the truth is that if you aren't being paid, someone else is. So stick to your systematic plan of follow up. You'll soon know who intends to really pay and who doesn't. You can then take appropriate action once you know where you stand.
7- Make Sure Your Staff is Trained
Even "experienced" staff members can sometimes become jaded when dealing with past due customers. This usually occurs when they have made and broken promises for payment. Make sure the staff is firm, yet courteous when dealing with them. Your collection staff could benefit from customer service training because, in effect, they must "sell" your patients on the idea that you expect to be paid. Make sure that your collection staff is trained to not only bring the account current, but to also maintain good will with them.
8- Correct any Mistakes on Your Part
Sometimes customers don't pay because they feel you've made a mistake. If you have, quickly admit it and correct it. Your patient should understand that mistakes occasionally occur. Unfortunately, many customers believe that "the company doesn't need the money". Denying an obvious error only fans the fire of resentment your customer may already feel.
9- Follow the Collection Laws in Your State
In many states, practices are governed by the same collection laws as are collection agencies. For example, calling customers at an odd hour or disclosing to a third party that they owe you money are just a couple of the numerous collection practices that can cause serious repercussions. If you're not sure your may contact NAM or use our resource center to determine your obligations under the Fair Debt Collection Practices Act.
10- Use a Third Party Sooner
If you've systematically pursued your past due accounts for 60 to 90 days from the due date, (and they still haven't paid) you're being delivered a message by your client. More than likely, you've requested payment four to six times in the form of phone calls, letters and statements. Statistics show that after 90 days, the effect of in-house collection efforts wears off 80%". That means that the time and financial resources budgeted for collection efforts should be focused within the first 90 days where the bulk of your accounts can and should be collected. From that point on, NAM Collection Agency can motivate a customer to pay in ways you cannot, simply because the demand for payment is coming from someone other than you. Then using all of the additional collection options available.
11- Remember that Nobody Collects Every Account
Even by setting up and adhering to a specific collection plan, there are a few accounts that will never be collected. By identifying these accounts early, you will save yourself and your company a great deal of time and money. Even though a few may slip by, you'll find that overall the number of slow pay and non-paying accounts will greatly diminish, and that's a victory in itself!
12- Place all accounts on a national basis
If you utilize a professional collection agencies such as NAM they by standard practice place all account on all three of the national credit reporting agencies. If you elect your accounts in-house you can still report accounts. This will result in an increased recovery over time. Individuals, who might not have the means to repay the bill at this time, will be reminded for up to 7 years each time they try to apply for credit. If it is placed on a national reporting file.
13- Monitor your agency
When using a debt recovery service such as NAM you will receive reports that are designed to meet your reporting needs. These reports will provide you information on all of your placed accounts. Such as accounts that have declared bankruptcy or are deceased. In addition to accounts that are unable or unwilling to repay the bill. Make sure that your reports are inline with your ability to understand the progress ok lack of progress on recovering accounts.
14- Learn about the collection process
In order to maximize your recovery you need to understand all of your options. What type of collection procedures are being used to recover your accounts? How many letters and calls are being made? What other options are available to you other than standard collection procedures. When you use NAM you are always able to move accounts from one level of collections to another. You can ask as many questions and use our resource center as often as you need to keep yourself apprised of current and new collection procedures.
15- ITS YOUR MONEY!!
So many customers think that it’s an acceptable loss to write off a percentage of an account or of a month’s revenue. NAM as Debt Recovery Agency understands that you are in a referral business but also knows that a percentage of our clients have come to us out of desperation, and not sound business planning. We loose some of these clients not because we are not doing our job but because they have lost there’s. In today’s economic environment it has become imperative to put in place a sound collection plan and a company to turn to for assistance. National Asset Management LLC- Today’s most progressive collection and recovery company-
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