For small business owners: Here’s why hiring a debt collection agency is a wise option

Brennan & Clark is a commercial collections agency that has aided entrepreneurs in eliminating credit losses for decades. The firm is known for forming strategic alliances with its clients—working closely together to formulate an effective plan that augments the clients’ collection strategies and helps preserve the relationship between its clients and debtors.

According to Brennan & Clark, hiring a debt collections agency is a wise decision for companies of all sizes, even the small ones. Small business owners know how much spending too much time on debt collections hurts their operations. Sometimes, debt collection can be accomplished in-house. But in most situations, small businesses don’t have the workforce to put up their own debt collection teams.

Without debt collection departments, small businesses would need to allocate precious manpower to collecting funds from clients who have been consistently delinquent in their payments, leading to severe loss in productivity. But with companies like Brennan & Clark, recovering funds from delinquent debtors would not be so much of a burden.

Brennan & Clark suggests hiring a commercial collections agency when a client refuses to respond to the initial letter requesting payment. Potential losses can be maintained to a minimum through immediate referral to a collection firm, which is a huge deal for small businesses and startups.

As Brennan & Clark explains — when a customer continues making excuses to avoid paying, a collection agency might do a better job handling their account. It is a small business owner’s decision whether the problem is worth the time and resources or necessitates a small percentage of the amount of the debt to share with the debt collection agency for more concentrated debt collection.

Moreover, professional help could be especially crucial when the delinquent client denies responsibility. Without a debt collections agency’s expertise, such accounts could be written off as total losses, which could be disastrous for small businesses.

Brennan & Clark is a commerical collections agency assisting businesses in eliminating credit losses through customized receivables support solutions. For more updates on the business collection industry, subscribe to this blog.

Debt collection during the pandemic: What can debtors do?

The global economy has experienced a disruption due to the coronavirus pandemic. This also brought financial challenges to millions of people all over the world. Business collections agency Brennan & Clark has an incredibly reliable Receivables Support Solution that helps clients come up with well-defined goals for their collections. For this blog, their expert team shares what debtors can do if they are at risk of missing payments.

Be informed about state and lender policies

The situation has led government authorities and private companies to change some of their policies when it comes to collection and payments. Before skipping on payments or negotiating for lower fees, debtors should always check the new terms.

Negotiate

If there are no announced changes to payment terms and collection schedules, or if the debtor is incapable of making regular payments, they can choose to negotiate with agencies and lenders. The team at Brennan & Clark advises debtors to communicate with their lenders to find the best solution, like repayment or lower interest rates.

Rank and assess debts

Those who are still capable of paying their debts must consider which ones to complete first. During this time, it might be necessary to save more money especially for those with limited income. Prioritizing high-interest debts or essential payables might hurt for a few months, but it might make the burden lighter once completed. For those who are unsure which debts to pay first, consulting a debt counselor or financial manager should help.

Brennan & Clark is a business collections firm that has been operating for over 30 years. The experience and expertise of its staff enable the company to guarantee higher recovery rates than the industry average. For similar reads, visit this blog.

Comparing business and consumer debt: A quick review

Brennan & Clark, a top business collections agency in the U.S., has always made it a point to educate not just its clients, but everyone everywhere on the finer points of collections. The company understands just how many businesses are struggling to collect debt and the staggering number of people struggling to pay.

Today’s blog is an informational blog which explores the differences between business and consumer debts, which are the two types of debts that debt collections have branched out to.

Commercial debt

Commercial collections are aimed toward recovering unpaid business invoices owed to another business. Collections agencies conducting consumer collections are not governed by the Fair Debt Collection Practices Act (FDCPA), although they may be required to be licensed in the state where they operate. These collections involve a larger expected payment, where an unpaid commercial invoice could affect the cash flow or even the very survival of a business. Brennan & Clark also notes that consumer collections also involve communications with the accounts payables department of a firm and also potentially an escalation to a credit manager.

Consumer collections

Unlike commercial collections, consumer collections are made when a consumer owes a debt to a specific business, and are strictly regulated by the FDCPA. This limits the ways collections agencies’ representatives are able to connect with consumers for the collections process. Their efforts involve tracking down the debtor to fulfill his or her obligations, and the amount of the debt may be much smaller than what’s owed in business to business (B2B) transactions, Brennan & Clark adds.

Brennan & Clark is a business collections firm that has been in the business for over 30 years. The firm’s management team has been together for the past 20 years, and the combined experience and expertise of its staff enables the company to guarantee higher average recovery rates than the industry average. For more reads on debt collection, visit this blog.

Some SME considerations on credit and debt

The entrepreneurial mindset is an interesting thing to observe, especially when talented individuals see opportunities on the horizon. To help them along their way, Brennan & Clark shares with them some SME considerations on credit and debt in this blog.

As an investor, you may be oozing with confidence at how your project or investment will perform in the market. However, you need to understand that the math has to make perfect sense. The first thing you need to know is the maximum amount that a creditor is willing to give you, based on several factors.

First of all, you need to have a bulletproof business plan that reflects sound financial data. Be wary of exaggerating your projections on returns on your investment to get a nod from the bank to get the finances you need. Brennan & Clark notes that financial institutions will take a look at factors like your payment history, credit utilization, credit history length, credit mix, and new credit, so it would be wise for you to research these terms as well.

Most importantly, make sure that the amount that you will loan is the amount that will realistically help you achieve both profits and repayments for your project. Resist the temptation to loan a larger amount just because your credit rating allows you to do so.

If you do everything according to the right calculations, there is no reason for you not to prosper in your endeavor. However, mistakes in this line of business can be quite costly. Brennan & Clark assures you that you don’t want to get in too deep in debt.

With nearly 40 years of experience in the industry, Brennan & Clark is a business collections agency that provides customized receivables support solutions that help businesses eliminate credit losses. Visit this page for more related reading.

How rookie collections agents can navigate the waters

Brennan & Clark’s agents have proven time and again just how the success of a collections agency hinges on collections agents who are knowledgeable, well-trained, and highly-skilled. It is not by any meager means an easy job to be a collections agent, but it is rewarding, and it can lead to quite a career in collections.

For this blog, Brennan & Clark offers tips to young people planning to become debt collectors.

Understand the job

Probably, the first thing people should do when preparing for a debt collections job is to understand what the task entails. As mentioned earlier, it can be a challenging job. There will be debtors who straight up would be hostile, and others who cannot be found. Knowing all these challenges will prevent young collectors from being shell-shocked when hardships confront them, Brennan & Clark notes.

Temper yourself

Brennan & Clark mentions that one of the most overlooked aspects of debt collections is practicing self-control, especially when confronted by stressful events. Patience is a virtue that all of the best agents in the best collections agencies have. Keeping oneself from being emotional allows them to assess the situation and take the most efficient course of action when it comes to collecting debts.

Brennan and Clark is a business collection agency that has been operating since 1980. A founding member of the Commercial Collection Agencies of America, the firm offers unparalleled service and the most comprehensive guarantee in the industry. For more information on Brennan and Clark, visit its official website.

Five ways to improve business credit score

Small business owners work hard daily to keep their company running and their employees with jobs. During these times of uncertainty, businesses need all the help they can get to stay afloat. Without a good business credit score, qualifying for loans and emergency provisions may not be an option. Business collections agency Brennan & Clark shares five ways businesses can improve their credit score.

Report inaccurate information. Some on-time payments may not reflect on the account, causing a discrepancy in the data. Any unreported paid debt must be brought to the attention of a reporting agency and should be challenged. Pay bills on time. Government offices, service providers, and banks have extended grace to individuals and businesses during the pandemic. Practice timely payment of bills to ensure a good business credit score.

If possible, limit credit use. Doing this keeps debt at safe levels. Owing a ton of money to creditors and banks is among the many factors that influence credit ratings. Let old accounts sit open. While it may be tempting to close unused accounts, terminating them can have a negative impact on a business’s credit rating.

Business collections agency Brennan & Clark reminds its readers to use credit wisely. Financial experts see credit as something that has to be played with percipience. A small business might need to open several business loans and credit cards to learn the rules of credit and pay dues on time. Call lenders and ask for an increase in credit limit and pay down balances to achieve a good business credit score.

Brennan & Clark is a business collections agency that aids entrepreneurs in eliminating credit losses. The firm, which has been operating for more than 30 years, is known for forming strategic alliances with its clients—working closely together to formulate an effective plan that augments the clients’ collection strategies. For more updates, head over to this page.

The best debt management plan to improve settlement

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The challenge of being a creditor is that businesses often make their projections on profit by looking deeply into how much money there is to be made. However, as credit collection experts from Brennan & Clark can verify, money only becomes real when you recover it from whoever owes you. Here are some suggestions for a good debt management plan that can improve debt settlement.

1. Establish an agreement with your debtors.

Be clear and precise as to how the loan or other form of debt will be settled. It would help if you were very specific to the amount, the interest, and the scheme so that the client cannot come up with any strong argument against your legal claim, should the deal come to that in the future. Also, do not surprise your client with any hidden charges. Transparency is key.

2. Consider extended payment terms.

Understandably, your decision to offer a loan to a client in the first place is a huge boost to your profit objectives. This is why when they are past due; you should also be creative in drawing up extended debt payment terms for your clients. A methodical way of getting back the money owed might do the trick.

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3. Plan for a reduced or eliminated interest.

At some point, you will have to face the reality that it is better to gain less than what you had initially expected because it is better to regain some amount of money rather than get back nothing at all. In such a case, a reduced or an eliminated interest is your best bet.

There are many ways that a client’s debt can be managed, as drawn from the vast experience of companies like Brennan & Clark. Eliminating credit loss can be done by following these suggestions to make debt settlement a lot less complicated.

Brennan & Clark helps businesses eliminate credit losses with customized receivables support solutions. With over 30 years of experience in the industry, it guarantees satisfaction in the service it provides and a more efficient collection process for businesses. Visit this page for more information.

What the best business collections agencies have in common

Even during the current global health crisis, Brennan & Clark still manages to serve its clients the best it can, which is why the firm is one of the best in the country. Some people have hired business collections agencies in the past and have been disappointed with the quality of service, or lack thereof.

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As a guide, Brennan & Clark lists three characteristics that set the best collections agencies apart from the rest.

The best business collections agencies have reasonable (and flexible) contingency costs and fees.

Some business collections agencies know that not every business makes the same profit. Some agencies scale their fees and contingency costs to their clients. It also goes without saying that rate is not a reflection of the overall quality of a business collections agency.

The best business collections agencies are adept at skip tracing.

Skip tracing is when business collections agencies trace debtors who have left (or skipped) town by accessing databases all over the U.S. This method can even locate debtors who do not want to be found. Not every business collections agency does this, but the best ones do, according to Brennan & Clark.

The best business collections agencies specialize in specific clients.

There are some collections agencies that are used to working with large corporations, while others have a great track record with small-to-medium enterprises. Brennan & Clark says that business owners need to look at the track record to see which business agency suits them best.

Brennan & Clark is a business collection agency that has been operating since 1980. It is a member of the Commercial Collection Agencies of America. More on the company and its services here.

A guide to staying on top of payments during a crisis

For many workers around the world, the COVID-19 pandemic is more than a public health issue. With almost all industries shifting from office-based work to telecommuting, some employees whose work required manual labor to receive less pay for cut hours or are laid off. What happens to their bills?

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Experts from Brennan & Clark suggest that individuals get in touch with service providers. Before the payment is due, an individual should call up their service providers for their mobile phone, cable TV, and digital subscriptions and check if they can have their plans downgraded. Instead of racking up interests for late payments, reduced rates for cheaper subscriptions can help one pay their bills on time.

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Review the cash flow. A person can have several income streams without actually knowing it. Whether it’s a regular paycheck, stimulus check, or unemployment benefits, it should be used to pay for essential living expenses such as a mortgage, utilities, and groceries. Widen the gap between saving and spending. One should still be stashing money in their savings account even during a crisis. If possible, apply for an online job for an added source of income.

According to collections agency Brennan & Clark, when a person’s bank account is in the red, the best thing to do is to research local nonprofits. Call up vital organizations in the community and check if you qualify for programs they offer. Qualifying for assistance can alleviate a person’s financial circumstance, which makes paying bills on time a bit undemanding.

Brennan & Clark is a business collections agency that has been operating since 1980. It provides customized receivables support solutions that help businesses eliminate credit loss. For more updates from Brennan & Clark, visit this page.

Why business owners should be (at the very least) aware of their business debts

Brennan & Clark has seen far too many businesses close down because owners had no idea of the financial hole their company was in until it was too late. The financial standing of a company is just as important as everything else in the business, and a huge part of a company’s financial standing is affected by the company’s debt.

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There are many factors why sometimes business owners take their eyes off their company’s debts. They may be too busy with other facets of the business or they trust their finance and accounting departments way too much, or the company has automated systems in place for payment. Whatever the reason is, it would do entrepreneurs well to occasionally go over the company’s financial standing and refresh their awareness of just how much the company owes and to who.

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There are effective ways to keep abreast of the company’s debts, Brennan & Clark explains. For example, regularly conducting debt reviews won’t take up two hours of a business owner’s time, but will have him up to speed on the company’s status regarding its debts. Debt reviews also provide business owners with a good idea of their credit scores, which is also a huge part of the company’s financial standing.

Even simple (but official) one-on-one meetings with the head of the company’s finance department can go a long way for business owners in being aware of how the company is doing in terms of debt, credit, and other financial matters.

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