3 Major Reasons to Maintain a Good Credit Score

Any financial plan should consist of features that will help you maintain a good position in the credit reports India, while also making beneficial investments and financial choices. Making sure you have a good credit score can be a difficult task, especially if you have many debts. Managing a bad debt can be even worse as you might have to look for a settlement with the debt collection services hired by your creditor. However, making sure your credit score is high has several benefits, such as:

Better loan and credit terms and options

Many people are on the receiving end of a debt collection agency as they struggle to pay back dues they had taken as credit. However, if you have a good credit score, you can choose from a range of choices for loans, credit cards, and other credit products. This can help you compare rates and choose the most beneficial one depending on your requirement. The terms and conditions that get applied to such credits are also more lenient as compared to those offered to people with low credit scores.

Higher insurance rates

You can save a lot of money on your auto or home insurance if you have a good credit score, as the risk is lesser for the insurance company. Hence, many companies lower premiums for people with a better score. You can choose which insurance company to opt for by looking up the business information reports and finding trustworthy ones.

Increased housing choices

Maintaining a good credit score by paying off your debts and dues on time shows that you are financially responsible. On the other hand, being a victim of debt recovery services can be an unpleasant experience. In these cases, the creditor has no other choice but to opt for services related to bad debt collection. This is because an economically stable person receives various options for houses to rent or purchase as landlords or owners usually check a person’s credit score before offering them the house.

Looking for the most profitable and suitable proposals from your lenders? Hire our expert debt collectors today! 

Difference between 3rd party debt collection services and in-house debt collection

Debt collection is the process of recovering bad debt from a person or business, using legal action in several pieces of the Fair Debt Collection Practice Act of 1977 and explaining how debt is collected by several other legislatures. There are various debt collection agencies including in-house debt collectors, third-party debt collectors and bad date buyers.

An in-house debt collection agency is one that is directly linked to the company that owes the debt. An in-house debt recovery program can be a little different than a company, for example, many companies create company, especially for bad debt collection.

Affordability

In-house debt collection agencies are often referred to as first-party debt collectors, as they relate directly to the creditors and their structural part, with which the debtor is the second party. Having an in-house debt collection program can provide some benefits, often because it is possible to work faster on bad debt accounts, as well as some subtle differences in debt collection laws affecting the home program.

Setting up an in-house debt collection program is not a small task, it requires a lot of investment and very strong infrastructure to be effective. As a result, many companies feel that using a third-party debt collection agency is much less expensive and more affordable.

Direct involvement

A 3rd party debt collection agency is not directly involved with the issuance of credit, or with the debtor, or with any other party. This is what makes them a third-party and this scattering often makes them more effective than real estate debts.

Bad debt recovery rates

The third-party debt recovery rates and methods of payment of a company can vary greatly and is based on a service agreement between creditors. In many cases, the third party company will be paid a commission for the debt owed, for which the recovered money has not been recovered.

Initially, this rate can be as low as ten per cent, although the number of debt collection efforts, as well as the age of the loan, can affect the percentage, which can reach up to 50%. In these cases, where debt collectors are paid only when the creditors’ assets are recovered, there is still a large incentive to provide efficient and effective service, which can result in higher conversions for the creditor.

Services not limited to just debt collection

However, there are also storage companies that operate per work, which, for example, may charge 15 for soft-storage or pre-storage service for each customer. The collection occurs when one or more letters are delivered to the customer, requesting the debtor to pay into their account using a few slight verbs of each letter. If this is ignored or ineffective, the collection process begins with fidelity, known as hard storage. It is common for debt collection agencies to provide a variety of services, including early soft-storage services, while also providing call centres with agents ready to begin the hard-storage process.

Scalable and reliable

Although in-house collection programs can be effective and provide some benefits, many companies do not have the time, capital and knowledge to successfully implement debt recovery solutions, at least through third-party debt collection agencies.

Debt Nirvana is a reputed debt collection agency that helps businesses protect their assets. The choice of a third-party collection agency is one of many relevant ways to ensure that all federal regulations are met, and your loan is recovered as efficiently as possible. Companies like Professional Recovery Consultants offer many ways to help companies manage their bad debts.

5 Reasons Why Small Businesses Love Debt Nirvana

The business industry is growing faster and faster, which means it can get out of control anytime. If your business don’t keep a steady flow of cash which means you’re putting your business into a big risk. There are many enterprises that call upon the debt collector only as a last resort and some others keep the debt collector numbers on speed dial.

Before you make any decision, there are few facts to consider when you outsource debt collection service from Debt Nirvana – a 3rd Party Debt Collection agency India.

Here are the top 5 reasons why small businesses love Debt Nirvana,

1. Time & Money

Collecting a debt can be a time-consuming process, which takes time and extra effort from your in-house team. But with Debt Nirvana – 3rd Party Debt Collection agency debt collectors, they take over debt recovery on your behalf, which means your employees can spend more time on core actives to grow your business.

2. Follow-Up

With Debt Nirvana they have a special team of experts debt collection, they will recognize the signs of serial debtors and follow up on outstanding payments. Read more...

How 3rd Party Debt Collection Agency Help you in Tracing a Missing Debtor

Bad Debt Collection is becoming one of the main problems for many small businesses. Overall it isn’t always possible to recover payments. Especially when it becomes difficult to hold the customer. When your posted letters are returned, phone calls ring unanswered or emails to bounce, it shows that now you need to call in the help of a Bad Debt collection agency

Before your debt reaches the critical stage make sure you take some various actions to prevent gone-aways in the first place. You can also avoid debt problems by setting up accounts correctly at the beginning of any transactional relationship. If you are struggling to track your debtor, the expert of 3rd party Debt Collection offers some useful advice on confirming if your customer has genuinely disappeared or not.

1. In the beginning, you should contact the royal mail to know if your debtors are still at the address you have. Mostly when people relocate, give their local post office a forwarding address, as this will require a signature of the resident.

2. Try to call on all the phone numbers you have, such as direct line, past mobile numbers, current mobile numbers. And try to speak to the debtor to verify the contact details. You can also try to call at different times of the day and call from different numbers. Read more...

5 Things that can Affect the Finance of your Business

A lot of entrepreneurs think that they own an independent business but it is not the truth. The finance of your company mostly dependent on other companies, and some other relevant factors, then you like to admit. One of them is your connection with your clients and customers. If the clients and customers stop paying bills, it can create a huge impact on the finance of your business bottom line. 

As per expert Debt Collection Agency, here are five areas which often overlooked as the reasons for financial stress for your businesses.

1. Weather

This one is special for businesses who’re connected with import-export. Such things like storms and hurricanes cause problems it can affect anything from crop prices to transportation. The best thing you can do is keep an eye on which way the wind is blowing for your targeted customers and suppliers.

2. Hiring

Every employee you hire is both an investment as well as a risk in your business. Keep eye on who and how your suppliers and clients are hiring. And if you find that they are not hiring and training good employees, this could be a warning sign for your business. In that case, the only best thing you can do it contact any 3rd party Debt Collection agency who can handle your debt collection. Read more...

All About Accounts Receivable – What’s the Accounts Receivable Process?

An account receivable is very much important is small businesses. Collecting payment for all the products and services you’ve sold to your clients or customers forms the basis of a company’s cash flow. Overall it means if the customers are slow to pay, your finances are likely to be under major pressure. All businesses should have someone who manages debtors seriously but when you run a small business it becomes hard to hire a person especially for Account Receivable, so in that case, the best option is to hire Account Receivables outsourcing services.

What are accounts receivable?

Account receivable shows how much money a business is owed for the goods and services they’ve delivered but its payment is due. In simple terms, the money you’ve owed by customers. As per the expert Account Receivables outsourcing services provider, the total account receivable is the sum of all invoices that are outstanding. Once you send an invoice, it becomes a part of your business account receivable until you receive all the payment. 

What’s the accounts receivable process?

The account receivable process is not complex when you outsource it well. It is how your business goes about collecting payment for the service you provide to the customers. An effective accounts receivable process is an essential part of keeping a healthy cash flow. As per 3rd party Debt Collection agencies, firstly you need to immediately send your invoices after providing your product and services. The invoice amount becomes part of your account receivable. The best thing to do is keep your eye on your bank account for payment or you can set up your accounting software to do this automatically on behalf of you. Read more... 

What are Debt Recovery and Debt Recovery Process? – Debt Nirvana

Both the Debt Recovery and Debt Collection are connected, the only difference is who is trying to retrieve the debt. As debt collection is mainly concerned by creditors they attempt to recover consumer credit and loans that have not been paid back by the client or customers. And similarly, recovery is when a loan continues to go unpaid and the creditor outsources collection service to focus on collecting unpaid money.

Debt collection and recovery are important as it is directly connected to your credit score which can affect the credit reports. Let’s know more about the process of Bad Debt Recovery professionals. 

Once belongs to the Bad Debt Collection agency, the creditor sends all the information and documents to the debt collector for noting your failure to pay the payment as per the decided terms of the agreement. Once the debt collection service provider accepts the claim, the recovery process begins and the professional collection agents sent one letter to the debtor as a demand letter and another to the creditor or client as an acknowledgment letter. Read more....

6 Reasons Why your Business need to Outsource AR- Account Receivable

AR- Account Receivables management is one of the unavoidable parts of any business. Whether, it is small or large or somewhere in between business. In short, financial purposes are now one of the most frequently used in every type of business.

For business who consider the financial purposes, now it's time for them to start realizing the advantages that assigning bookkeeping and relevant tasks can offer. Additionally, you have to understand the benefits of adopting outsourcing from the third party.

Money, time and resources are three very important factor in any business. If you are running a small firm and your In-house accounting department is not able to handle your accounts receivable,than this will cost your business as well as waste your and your employees time.

By adopting outsourcing financial functions, companies can dedicate more of the people and assets to their main mission- save time, money and resources.

Here are plenty of advantages to the AR- Account Receivable outsourcing,

Better Tools and Techniques:

since outsourced services deal solely with this aspect of a business, the staff they have are highly trained professionals whose sole focus is bookkeeping. They also use newer tools, such as automated reminders. As a small or growing firm, you may not be able to afford the tools and the programmers which the third party is using. The third party will give you access to the tools that help you manage the financial tasks.

Free up Talent:

As a small firm, your employees may wear multiple hats: your project manager is the person who is managing your accounts. And it is difficult for him to handle and justify all task. Outsourcing allows you to do and focus on the things which really matter to you.

Cut Cost:

Hiring your own accounts payable staff, as well as the new equipment and programs for a process can cost your business. On the other hand, outsourcing can give you experienced, professional who works same at a lower cost.

Minimization of Error:

With an In-house staff as they are working with multiple tasks, the chances of mistakes are higher. With outsourcing, the automated processes and experienced professionals will provide you minimize common mistakes.

More Eyes on the Business:

As you Outsource your business it will help groups of accounting and accounting professionals. Also, it rises more eyes on your business. With that, you can double check your transactions, increase your quality of work.  

Better Customer Interactions:

Accounts receivable, for the most portion, is a usual part of your company’s operations. When you outsource from third-party, the provider will ensure you to provide your customers with excellent service all the way through the process. Whether, it’s sending a kind reminder email or handling a customer who doesn’t want to settle his bills. Every stage, the outsourcing party will work to ensure the interactions your customers have with your business are positive in the most of situations.

Thus, you will get different benefits if you are getting the affordable services of the 3rd party debt collection company. The AR outsourcing is the best way to settle your debt with the higher possibilities.

6 Reasons to Use Effective Services of 3rd Party Debt Collection Agency

Businesses are having many issues everywhere. To solve this issue, every business person needs to carefully observe, be patient and let the parties remember about their loan. However, when the real problem arises, the late recovery of these loans can become a nightmare for the businesses. In such cases, the 3rd debt collection agency, together with your organization, offers a loan recovery for a business.

However, third-party debt collection agencies provide a broad range of benefits to modern growing business needs. According to a study by ACA International in 2013, bad debt collection agencies sent back $ 44.9 billion to creditors. Special forms of third-party credit collections make it easy to recover the banks, because of the non-aggressive policy.

•  Freedom to Focus on Core Business Functions

The success of the victory of professionals and good communication is based on freedom to focus. Negligence practices are said to move out of the center centered on their main business. Therefore, together with debt collection agency, it is gathered together to focus on the main causes at home for doing business.

•  Debtors take 3rd Party Debt Collection more Seriously

The growth and success of a business depends on the successfully recovery of its outstanding debts. The only way to keep business running smoothly is to collect the debt on time. So retaining a third party debt collection agency would give the business the freedom to focus on core business operations.

•  3rd party agencies use modern recovery techniques

The harsh economic climate in the majority of the countries has made it quite difficult to recover loans. In such kind of orthodox situations, many businesses failed to get positive results from their debtors. Nowadays the debt collection agencies are implementing modern strategies to collect debts from the debtors. 

•  Effective for International Trade

As there is an immense increase in the international trade, there is also an immense increase in the risk and it is extremely hard to recover the bad debts from the international market. There are third party debt collection agencies which are offering effective services that are subjected to the international jurisdiction of the debtors which will help your business to recover the debt.

•  Get Help from Experts

Hiring a debt collection agency is a good idea as they are having skilled professionals who are expert in the technical processes of debt recovery. You don’t have to deal with the training your in-house staff for the debt collection stuff.

•  Enhanced Chance of Debt Recovery

In many cases, the third-party collection agencies are providing high possibilities of bad debt recovery. Such agencies have higher motivation to be effective and higher record of debt collection. In this way there is an enhanced chance of recovering their money by hiring a good bad debt collection agency.