DSO Case Study by Debt Nirvana, A Debt Collection Agency

The average no. of days a firm takes to collect the payment after the sales from the creditors is called DSO-Days of Sales Outstanding. The DSO can be calculated by :

DSO = (Accounts Receivables x No. of Days) /Net Credit Sales

Accounts receivable are the company's payments for sales made on credit. The longer the company takes to collect the payment, the higher the DSO will be.

Lower DSO means the firm takes a few days to collect receivables. Lower DSO is usually good for a firm. It helps a firm to run the working capital & operational cycle of the company smoothly. Higher DSO will lead to a cash flow problem in the company.

Lower DSO is essential for small enterprises. They require timely financial inflows for operations, personnel salaries, and other expenses. They cannot clear future payments unless they collect receivables on time.

Various factors affect the outstanding days of sales. Let’s have a look at it.

Factors affecting the DSO

1. Credit Policy of a firm 

2. Payment Terms by Sales Team

3. Economic Condition

4. Customer Payment Habits

5. Weak collection process

How does higher DSO affect your business?

1. Cash Conversion Cycle

2. Working Capital

3. Profitability

4. Risk of Bad Debts

5. Operational Inefficiency

6. Customer relations

Solutions for the DSO effects on a firm

1. Credit Policy Management

2. Error-free Invoice

3. Collection Process

4. Penalties

5. Collection Agency Outsourcing

Debt Nirvana as Debt Collection Agency

Debt Nirvana, a Debt Collection Agency has collected the DSO data across the world. Let’s have a look at this line graph.

These are the data collected by Debt Nirvana.

If we talk about the North American region, the debt nirvana helped firms reduce 90 DSO in 2020 to 18 DSO in 2024. However, in Europe, the Middle East Region experienced a decrease from 130 in 2022 to 60 in 2024. In the same way, in the Asia Pacific Region, DSO decreased to 90 from 150.

This chart describes the overall success of Debt Nirvana in helping firms to reduce their Days of Sales Outstanding. Firms can save millions of dollars annually with the reduction in Days of Sales Outstanding. For more information, contact Debt Nirvana at +91-9810010294 or email at rvm@debtnirvana.com.

Read More Here :- DSO Case Study by Debt Nirvana, A Debt Collection Agency

What to Consider while Working with a Debt Collection Agency?

 Since you delayed your credit card payment a few months ago, you probably. Many annoying phone calls have been received from borrowers. However, you need to learn some facts about the debt collection agency. Although many companies are working under the authority, not all collection agencies operate legally or under license to provide their debt collection services.

What is a debt collection agency?

A debt collection agency is a company that receives debts from customers or business entities. Most collection agencies run their businesses as creditors’ agents. They help creditors collect the debt allocated for a percentage of the total loan amount collected as their fees.

Some agencies are also known as “loan buyers”. They take loans from creditors for pennies on dollar dollars and hunt for the full amount of debt owed.

Typically, after several months of pursuit without the success of the debtors, creditors will allocate or sell debt to collection agencies so that the amount of this bad debt can be written off due to a loss in their records.

Things about debt collection services that you need to know

Those who are chased by debt recovery agencies know that they are aggressive and have a bad reputation for intimidating and harassing debtors. Fortunately, in many states, collection agencies are monitored by law to prevent some unpleasant practices. As it is aggressive in nature, there are some activities that borrowers should be aware of when working with debt collection agencies.

· Avoid talking to debt recovery agencies: The less you talk to them the better. If they call you at your home, at work, or on a cell phone, simply ask them to communicate with you by mail, and send them a ceasefire with the mail registered with the receipt.

· Even after you send them a mail and they keep calling you, you should tap the phone conversation. Check your state’s law to see if your conversation is allowed to be recorded. Usually when you tell a debt collector that a conversation will be recorded, it is likely that the phone will hang up.

· Be familiar with the law of limitations in your state. The debt collector will keep calling you for a long time, the debt is also over and the loan no longer needs to be repaid legally.

· If you make any kind of payment to the debt collector, you simply confirm the loan and resume the law of limitations. Therefore, it is very important that you are aware of your rights.

· Aside from the law of limitations, you should also learn your rights by reading the Fair Debt Collection Practice Act (FDCPA).

· Under FDCPA, you have the right to approve a loan. Ask the collector to prove that you are the person responsible for the debt. If they fail to prove it, you have no right to take a loan from you.

· Just because you are in debt does not mean you should be threatened. Be aware of the debt collection agency and be educated about your right to deal with them.

Final thoughts

Debt collection agency is a necessity in our current business environment. While companies have always needed a collection agency with increasing amounts of commercial loans, debt collection agencies are even more needed. Collection agencies are called by companies that are not able to receive payment from the business for their invoices. Business loans can grow rapidly with interest charges and sometimes troubled companies will simply stop paying and suddenly find themselves unable to pay in full. When this happens, debt recovery agencies can move on.

Why would you use Commercial Debt Collection Services?

Businesses can often face financial difficulties when they give credit to customers who then refuse to pay or pay late. The effects of this are serious and more and more businesses are choosing to use commercial debt collection services to get their money’s worth.

Constantly chasing a non-paying customer can be very costly and tedious. He makes many phone calls, texts, letters, visits to their premises or home to talk to them about it. However, they may promise to pay but they do not. This is very frustrating for the business owner as they are left without the money they need to work as a business. The worst part is that they can pay other people and they won’t be able to pay until they receive their money, this can be a very difficult situation and sometimes even a business.

Focus on your core business operations

The longer the loan is not repaid, the harder it is to repay. People walk away, go bankrupt, close a business or refuse to pay. As a business owner, you feel that you have tried every option to get the money left over and to no avail. At this point, you may want to consider using a commercial debt collection service. Using this outside agency, you no longer have to chase debt for hours and hours.

Save precious time

You will not need to hear any excuses or lies and will have more time to spend on your business. It can be very frustrating to deal with people who can’t really pay but the debt recovery service will help the debtor find a way to pay. This may sound harsh but the truth is there are many people who can pay off the debt but don’t like it.

Get full credit

The consequences of not using a business debt collection service can be devastating for your business. If you can’t pay your bills, your credit rating will deteriorate. This means you won’t be able to get credit for your business, no credit means anything because most businesses are based on credit. You feel like you can’t even pay your employees or your utility bill, imagine how stressful it would be? Bad debtors not only affect your life but also the lives of others.

Final words

So, if you think you have a bad debtor or some bad debtor, then using a professional debt collection agency like Nirvana can really solve your problems. Sometimes you need the help of another agency to enable you to do your business, and in case of bad debt, this is the service that should be preferred.

What are Debt Collection Agencies and their Powers?

Debt collection agencies are taken by companies to collect their bad debts. Many companies have in-house debt collection branches for this, but many will choose to hire the services of other specialized agencies. They are generally intimidated by Debt Collection Agency, as they are unaware of the powers entrusted to such agencies. Of course, there are some unscrupulous agencies, which debtors believe they have more rights than they really have, but that doesn’t help the state.

Flexible payment options

The collection agencies are paid in two ways. One is to pay them a fixed amount, and the other is to pay them a percentage of the debt collected. There are agencies that actually buy some loans directly. This indicates that if a debtor owes the company money, and the company sells it to a debt collecting agency, the debtor should legally pay that debt to the agency. The company gets a small percentage of its total debt by selling it to the agency. Everything the agency collects from the debtor is retained by the collector. The agency needs to collect more money than what was paid to the company in order to buy the debt, so it uses all sorts of tactics and often engages in some unfair practices.

Empowered to access premises

Premises holders do not have the right to enter your premises or take possession of your belongings. In fact, they can only ask you for money. The point is that they keep calling the borrower frequently, and dishonest collectors are known to threaten the borrower for the purpose of collecting outstanding debts. On the other hand, a professional debt collection agency will seek to develop a fruitful relationship with its creditors, thus initiating a negotiation process for debt collection. In many such cases, the debtor can expect a portion of the loan to close.

Legal rights

Borrowers are not expected to call on borrowers at specific times, such as getting up early in the morning or arriving late in the evening. Although they may call you at your workplace, they should stop doing so, saying that you are not allowed to accept personal calls at the workplace. Borrower are not allowed to harm you or threaten or use abusive language in any way. They may not make false claims about your debt, or lied about your legal right or status, seize your property, or arrest you. Read more...

3 Ways How a Debt Collection Agency can Help to Meet Your Financial Needs

Don’t your customers or customers pay you right? If yes, then why not hire a professional debt collector who can handle your company’s financial problems? However, if you own a start-up, hiring a debt collector will obviously be a bit difficult, as you will not be able to manage the overall financial office fees. Wondering what else you can do to get your loan back? Well, I would suggest, go to an agency that is excellent at debt collection. Don’t think I’m saying this because I own such a company, but I’m saying this because it has helped many business owners of start-ups as well as large companies that don’t have a separate division which includes professional debt borrowers.

Now, in case you’re wondering, is there a “good” debt collection agency in Houston, Texas, I’d say, yes! Houston has several commercial collection agencies to choose from. And if you have no contact with such a company, there are two things you can do:

Take a referral – Call all your closest people or business associates and ask them to refer to some companies that are good at collecting debt.

Browse online – And if the people closest to you can’t refer you to a company that is excellent at debt consolidation, work best on the Internet. On the Internet, you will definitely come across many such companies. Also, you can see their testimonials and other details on the website.

If you are still confused about getting a debt collection agency to get your money back, here are some points that will surely prove that hiring them is really worth it. So, let’s take a look. Read more...

Choose Debt Nirvana for Debt Collection in 2020

When companies have exceptional requirements, they often turn to lawyers to sue the debtor, but Debt Nirvana – Debt Collection Agency offers certain services that must be completed before legal action can begin. With full service from start to finish and a responsive approach, it becomes clear why Debt Nirvana is the best choice.

We offer a full range of services.

We offer a one-stop solution, which means that we work and analyze accounts. In particular, we will contact each customer, issue invoices and leave accounts open for 60 to 90 days and hope to get help and results.

Before this, we sniff for assets. We analyze and see where they work, what properties they own, if they have a mortgage, etc. We want to balance the activities of debtors with obligations to determine if an account can be obtained. If we find good assets and our client approves the request, we will send this file to our in-house adviser and begin the process immediately.

We pay attention to your accounts.

Other organizations and law firms will only initiate legal proceedings pending payment by the debtor. They call and if the debtor cannot pay the full amount, the lawyer usually goes to court. The big question for you should be what assets have you found to go after and once you’ve located the asset, what are the possibilities of getting on that asset? Read more...

Importance of Customer Service to Debt Collections

According to the debt collection agency in India, Debt collection and customer service go together with hand-in-hand

Why be a debt collector?

It is probably true that no one is happy when they get a call from a debt collector. Why did someone decide to do it? Information about the debt collector may vary depending on customer service, receipt, agent and customer service representative. The ideal candidate will feel comfortable on the phone, of course, and comfortable working with people. Most importantly, each of the above positions must be effective in listening and offering compassion. A debt collector must help people pay off their debts. If done correctly, the collector negotiates a win-win for his client and the debtor.

Even A debt collections agent will get some abuse phone calls. The customers will scream, squirt, cry, threaten and call names. The debt collection agency should also support and empathetic its employees. The employer must understand when the officer is to take a break, leave or find another way to reassess after the call. Indeed, it is very easy to know the feelings of the debtor by telephone, the culture of the company is therefore very important. Read more...

How To Boost Holiday Season Sales To Recover Your Debt

The sales season is a golden opportunity for companies. But December activity does not always translate into higher sales or positive cash flow. As per Debt collection services providers, here are three tips to increase your sales,

1. Improves customer service

Customer service, not discounts, is the key to boosting sales during the holiday season. This sales season encourages companies to join the offer of discounts and help in balancing the debt The smart company warned that sales are good, but discounted sales can generate negative cash flow.

Customer service should be your top priority, whether you have a physical or physical store or an online store. Excellent customer service must be constant throughout the year. Although as per the debt collection agency, customer service is more valuable, this holiday season will encourage customers to do many other things. Your excellent customer service will help you make good decisions as soon as possible. Improving customer service will lead to loyal customers.

2. Increase the value of sales

Excellent customer service translates into sales which reflect in debt collection. But in this holiday season, set your goal to increase your sales value by increasing sales. Have your customers buy a more expensive, improved or premium version of the item they chose. Or ask them to buy extensions to make a bigger sale. Read more...

5 Ways to overcome an Online Shopping Addiction

An addiction to online shopping has many of the same symptoms as addiction to regular and compulsive shopping, but it’s easier to have fun because you can now buy anywhere and anytime on your phone, it is mentioned in a Business Information report of many eCommerce businesses. Here are the 5 Ways to quit your online shopping addiction

1. Uninstall the mobile appAs per the experts of a debt collection agency, all these phone notifications are designed for iPhone and Android devices to be spent on them. 24/7, wherever you have access to online shopping, which is a big reason why it can cause this addiction. By removing your favorite shopping apps from your phone, you won’t be able to shop online for all hours of the day.

2. Keep track of your expenses

The next thing to do when you think that your online shopping addiction is a problem, then make sure you keep your eye on your money. You have to keep track of every dollar spent, especially online, and determine the extent of the problem.

3. Remove your cards

As mentioned in a Business Information report of many eCommerce businesses, with just a few clicks of the mouse, you can order any brand new that has been booked and pay while you are on your way home in less than 30 seconds. If you stop storing your credit cards on your favorite shopping sites, at least the process will slow down a bit. If you need to stop and enter your credit card details every time you order, you will be asked if the purchase is really worth it. Read more...

5 Ways to Pay Off Debt in 2020

Here another year is ending, which means say goodbye to 2019 and welcome 2020. With the new year, it becomes important to start pondering your financial future. And if you’re looking to pay off all your debt collection here we are as 3rd party debt collection services provider. Learn 5 ways to become debt-free in 2020.

Set Financial Goals

Make a goal to save at least 50% of your earnings, no matter what. To achieve this goal you can cancel all those extra services which you can live without. With setting financial goals you’ll be eager to pay off your debt collection way much faster as you accomplish the things you truly want.

Make a Budget

The road to no debt won’t be complete without becoming cognizant of your monthly earnings and spendings. Many of us avoid budgeting as it requires to much time, planning and detailed work. But with better budgeting, you can divide your money on what matters the most. To save time you can use any free budgeting apps online. Read more...

The Do’s and Don’ts of Debt Collection

Collecting debt is important for any SME, one of the most exhausting and laborious tasks which every organization must face to run a business effectively. Neglecting those due accounts can impact your cash and can place your business at risk. So, if you’re new facing a debt collection situation and have no experience in dealing with debt, here are few do’s and don’ts in the world of Bad Debt Collection.

Do Be Organised

As per the experts of 3rd Party Debt Collection agencies, while collecting the debt you need to be organized, send your debtors a friendly reminder a week before payment is due or your bills are unpaid. As soon as a payment is late, collect your debt in a polite manner. Contact the debtors regularly to encourage prompt payment and to ensure you and your team are speaking with the correct people.

Don’t Go Round There With A Baseball Bat

We know that it is not easy to handle a company or person owes your business money. Especially when you were under the pressure of maintaining a good working relationship. In a situation like this, it is recommended not to get aggressive, if it gets too much, uses stress ball but behaves politely with the debtors. Read more...

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...

5 Reasons Why Small Business Hire a Debt Collection Agency

Do you have clients who never pay you on time? There is more than 60 percent of small business owners face this kind of situation and have unpaid invoices at least 60 days. In cases like this you need to call upon the debt collector services of debs. As they know how to deal with the unpleasant aspect which is best for both the parties. With all this, there are few facts to consider when you dealing with a debt collection agency. For more here are some reasons why a small business outsources debt collection services.

1. Time & Money

Collecting a debt can be a long, and time-consuming process. Especially for small businesses it takes your employees time and morale which might affect your business. When you outsource debt collection services they take over debt recovery on your behalf and your staff enjoys more time on core activities, to grow your business.

2. Follow-Up

An agency specializes in debt collection knows how to recognize the debtor’s signs and followup on their due payments. Read more...

Impact of Debt Collection on your Credit Bureau

Being late on your debt payment is different from having your debt to go collection. As per the best Bad Debt Collection agencies, a debt collector collects debts that are due in the past. There are different kinds of debt collectors, it includes lawyers, individuals and such other companies that buy debts from other creditors to try to get them paid. When the debt goes into collection, it means the 3rd Party Debt Collection agency or company is trying to retrieve what you owe.

Impact on your credit bureau

A collection item has a huge impact on the credit bureau. A high score reflects the more points drop in your score. Such as, if you have a 750 credit score, you could see the drop in a score by 40 to 60 points from a single collection item. A collection of items stays on a credit report for at least seven years. Even after you pay for all the collection items, it doesn’t disappear. Fortunately, things are now changing with FICO 9. If you pay off a collection item, it will no longer be into your FICO score. In the current model, the best way for a collection item to disappear is you need to be patient and wait for seven years from the date it is first reported. It means seven-years from the date that you become 180 days past due. Read more...

Benefits of Technology in Debt Collection

The debt collection agency is an organization of specialists, who get the list of payees from the banks or from large companies and do the collection work on their behalf. Here all the collection practices developed are well tested. The primary role of the 3rd Party Debt Collection agency is to collect AR – Account Receivable. 

All the employees focus on calls, remind, visit actual borrowers and make them pay the due bills. Agencies use different ways to reach to the debtors and communicate with them about the debt, for that they use calls, SMS, Emails, letters, and sometimes personal visits. And to achieve operational efficiency they use proper processes and use of technology. Here are some of the benefits of technology in Debt collection,

Benefits of Technology in Debt Collection

1. Data Collection

All the collected data imported into the system by using. CSV or Excel Files.

For data transfer, the best way is to have a secured API link between the two systems. As with the help of using the API, it eliminates data duplication and chances of data leakage.

2. Assignment of Calls

Here the admin configures criteria on which the CRM software automatically call the agents.

Read more...

What is Debt Collection? – Debt Nirvana

What is a Debt Collection?

Being in debt is not good, a collection can result from a debt that is unpaid on given time. And when you become significantly delinquent on a debt, such as credit card bills, medical bills and such other, the parent company will often write off this debt as a loss and give it to the professionals such as a Debt Collection agencies. 

They will then attempt to recover the due money. All the creditors and lenders have different policies, based on that they sent the debt to the collection agencies. The credit card account is sent for collection after 180 days of non-payment. Overall it will result in the account being marked on the report with a collection status. 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....

Understanding of Bad Debt Collection

What Is Bad Debt Collection?

Bad debt collection is nothing but a payment collected for a debt that was written off. The collected debt can be in the form of a loan, credit line or some other form of receivable. As it generally comes with a loss when it is written off, debt collection produces income.

Understanding Bad Debt Collection

Bad debt can affect mostly all parts of a business. When your business allows bad debt to happen for too great a span of time, your business may find itself surrounded by too many debtors who are not paying or have due bills. This is where you need to impose the use of good credit control. Lack of cash flow in the business makes it impossible to run your business. All the Bad Recovery Process increase the stress and potential closing of the business is very real in a situation like this. Also, it can be hard to deal with all the Bad Debt Recovery. The life of any business is its cash flow, and when there is no cash flow, it results in no business and the chances of closing business are very high here.

Mostly the business’s cash flow is in the hand of those who own that money. The ultimate decision is up to them whether you are paid or not, even there is much you can do to ensure payment from them before the due bills - the debt turns bad. There are many of the fundamental fears of a business owner. The life of the business is all ways up to someone else in this situation.

Read More: "Bad Debt Recovery"

5 Mistakes You’re Making While Paying off Debt

When we talk about paying off debt, it may sound like a simple process. Make your payments every month and get your balances to the zero, with this way you can cross the finish line. But payment also includes interest rates which are steadily on rising, this means it is not much of a strategy. As per the Debt Collection Agency, the fact is that saving the money and getting out from this situation as quickly as a possible help in learning the basics.

Here’s a rundown of the top 5 mistakes most of you’re making while paying off due money.

1. Ignoring your unpaid bills

One of the common mistakes you can make is ignoring your unpaid bills. If you let all your due bills pile up on a desk, it’ll accrue more interest and late fees. Here there are chances of being sued. No matter how awful it might make you feel, you need to pay those bills and receive calls from the creditors. And mainly you need to develop a plan for dealing with those unpaid bills. 

2. Planning debt without a budget

This move is one of the silliest moves, you could not work your way out of debt without a budget, so it's better you cut your spending and manage your money well. With budget and good management, you can ensure that the limited amount of money you have available goes in the right direction towards paying off your due payments.

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5 things Third-Party Debt Collection can do

Dealing with 3rd party debt collection collectors can be scary, especially when you don’t know anything about your rights. Most of us have a lot of misinformation about debt collectors and what they can do and what they can’t do while collecting a debt. Here are the 5 things debt collectors can do when collecting a debt. 

5 things debt collectors can do 

1. Reviewing a payment plan after the agreed time has passed.

All unsecured debts such as medical bills and credit cards have a statute of limitations. After the decided date, the debt is expired and you can’t be sued for payment. But you still have that due debt and debt collectors can review the payment details and seek payment on these old financial obligations. 

2. File a lawsuit against you to have you ordered to pay them.

Also, 3rd Party Debt Collection collectors can’t threaten you or mislead you but they can apply pressure to collect payment. As per the law, they can call you daily, frequent letters or talk about pursuing a lawsuit for payment on the debt.

3. Sue you for payment on a debt

Debt collectors can sue you for your due payment on a debt. These lawsuits often result in bank levies, wage garnishment or both, most debtors don’t show up to court and lose by default. 

Read More: "3rd Party Debt Collection"