What are the best practices of a Debt Collection Agency?

Debt collection agency is a necessity in our current business environment. Although there is always a need for a collection agency with increasing amounts of commercial debt by companies, it is even more necessary for debt collection agencies. The agency is called in by companies that are unable to receive payment for their invoices from the business. Interest loans can move quickly with interest charges and sometimes troubled companies will simply stop paying and suddenly be unable to repay themselves in full. When this happens, the debt recovery agency can move on.

Dealing with the responsibilities

Debt collection agencies usually buy business loans from the company but offer only a fraction of the invoice. The company is happy because it has managed to reorganize the percentage of arrears and then not have to deal with trying to collect it – which becomes the responsibility of the collection agency. The agency should try to collect on the full amount of the loan. If they are able to do that, they become rich and everyone is happy.

Suffering loss if failed to recover the debt

In some cases, collection agencies suffer losses because they are unable to recover the debt. Therefore, it is not surprising that many unethical and illegal practices have been sprinkled with agencies. However, remember that it is permissible to use certain methods to collect them – the person or company from which they are trying to collect is not allowed to simply intimidate and harass.

Legitimate practices

When you want to hire a collection agency, the most important thing is to follow legal practices. For example, they are allowed to contact a business or person from whom they are only trying to collect between 8 and 8 p.m. They are not allowed to contact anyone at their workplace, nor are they allowed to talk to the person’s boss, coworkers, friends or family unless they know how to reach the person in question. They are not allowed to share the reason for their visit or to know the name of the person knowing that everyone has defaulted on their payment.

Debt collection methods

If you are not sure where you will find creditors who follow the legal collection methods, you can always ask. They are the one, dealing with the credit reports of the debtors. Most businesses have to call the agency at some point and are generally more than happy to refer others to good debt recovery companies.

Find out the right debt collection agency

Although storage agencies have always been, given the current depressing state of the world’s economies, it is not surprising that the collection industry has seen growth and a boom in business. It also means that a large number of unethical agencies have come forward to meet the need in the market. Therefore, it is more important than ever to make reputed debt collection agency like Debt Nirvana on your shortlist more important than before so that you can be sure that you are only hiring a legitimate company

How to build an effective account receivable outsourcing strategy?

Organizations are using outsourcing effectively and efficiently as an important strategy to reduce costs, prioritize their business needs, and focus more on their core competencies. Outsourcing strategies have evolved from cost-saving practice to a long-term approach to improving operational efficiency. The field of AR outsourcing includes various areas of business processes ranging from HR and payroll, accounting, accounts receivable / accounts payable, software development, customer support services and contact centres.

Strategic Account receivables outsourcing helps organizations to:
· Convert a variable value to a fixed cost
· Enter new markets
· Be flexible in business change
· Make your competitors smart

Your strategy may be based on three commonly used outsourcing models:
· Managed Services (Special Team with Outsourcing Partner)
· Build – Rate Pert – Transfer (BOT)
· Pay as you go
· Powered services

1. When you need control over outsourced activities
This may include a close coordination between your office fee and offshore center. Your outsourcing partner should be able to set up and manage a dedicated center for you. It may involve deploying some resources to facilitate the transition of work. There will be a nominee and senior manager for each role to be employed and to manage the day-to-day operations.

2. When you want to set up a wholly-owned subsidiary offshore Center
This is a preferred method, if you want to establish your own center, but want to see if it works well before making a final decision. There are outsourcing partners who are able to set up and run offshore centers on your behalf and accept full or partial responsibility after some time. (Usually 2-5 years).

3. When you want to use cost effective offshore resources
Go for this method when you just want to run outsourcing projects on time, possibly at a fixed price. Domains are skilled outsourcing providers and can take their projects quickly. It is especially suitable for time bound projects like web designing, software development projects. Although all three have different models of outsourcing models, there is an opportunity for this and sometimes, uniquely different mix and match.

What’s the account receivable process?
The process of receivable accounts begins when products or services are provided to customers on credit. A company generates an invoice that details the transaction, including the total amount and duration of the company. The movement is then recorded.

If payment is due on time, the receipt process is complete. However, this does not happen often. That is when the Debt collection Service department is in charge. First, the customer is given the opportunity to explain the delay. If there is a complaint regarding products or services, the matter is forwarded to the concerned departments.


The process ends once the problem is resolved and payment is received. Sometimes if the process is shown to be defective or does not meet customer expectations, the process will end, at which point the loan can be terminated or reduced. He will not be able to represent you or your company.

Some companies prefer to hire an outsourcing firm that can be received. These companies handle the process of collecting outstanding payments on a commercial basis. A certain amount or fee is charged for successfully completing the collection process. In some extreme cases, the customer becomes insolvent and cannot repay if the loan is transferred from the receiving account to a bad debt account.

A bad debt account will be on record, but the company will never be able to repay the loan. Some are lost due to debts, and that loss must be deducted so as not to damage the system. By partnering with Debt Nirvana, you can choose one of these models. With our prominent debt collection services, we will work closely with you with our local presence in the US, UK and India and help build your account receivable outsourcing strategy from scratch. We can share our experience and case studies of successful outsourcing engagements equa