How Is This Economy Treating Your Small Business?

On March 16, 2010, In business, By Mallory Megan

You would have to be living under a rock if you don’t know that we’re in the worst financial crisis in our lifetimes in the USA. If you find yourself worried about your business and what can happen next, you’re certainly not alone.

As I write this, the next few days bring great uncertainty about what the government is going to do to try and help bail out the failed banking system in the US. While it’s not clear what form the assistance will take, it appears almost certain that the US government will have to do something to fix the mess created in the financial system by rampant greed. What is going to happen? Who knows! What is obvious is that the vast majority of Americans are very unhappy with the situation and quite angry about spending billions of dollars to bail out an industry known for greed.

The unfortunate truth is, a bailout is not the end of the troubles for those of us who run small businesses. The American economy is in deep trouble and is not likely to be fixed very quickly. All the major news outlets have commentaries about what’s happening and what to expect. It seems the consensus is that it’s unlikely we’re going to experience a level of unemployment seen during the Great Depression. That’s the good news. The bad news is that things are ugly and their likely get much worse before they get better. And if that wasn’t enough, things are probably not to get better any time soon.

Small business owners are highly unlikely to land the line of credit they need in order to expand their business in the near future. So what can you do? No one can tell you what you need to do in your particular business, but I’ve always been a huge supporter of the low-cost direct marketing style in my businesses. I suggest you start rethinking all the many ways you can seek out additional revenue at a minimum cost. This means not only getting new customers at that minimum cost, but just as important, you need to try to sell more services to the customers you already have.

The situation is more complicated than simply not being able to obtain credit, but it is also going to be difficult for many business owners to even make it through the next several years. There has already been a big drop in consumer spending in the United States, and getting new customers as well as maintaining the ones you already have is going to get more difficult. That is why this is the time to get yourself back to the basic and most important task which is to get your business well marketed. There is nothing more important for your business in difficult times such as these than your marketing efforts.

Mallory Megan works for a collections agency that works with a debt collection lawyer. She also does stories on business and finance, the credit industry and collections agencies.

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The Debt Collection Industry Today

On March 9, 2010, In Uncategorized, By Mallory Megan

The collections industry has grown quite large in the past couple of years. The reason for this is that collections and recoveries are typically outsourced business functions. It would be unthinkable for a creditor to try to handle retrieving debt from all of their accounts, so the creditors call upon the collections agencies.

But there seems to be a beginning of an enormous change taking place with the collections industry. The industry has grown to massive proportionas through the recession and seems giant. Rather than hire out more service providers, creditors are begining to lower the number of debt collection companies that they will work with, which requires the companies they originally hired to take on more accounts.The effects of this could change the way that the collections industry operates in a large way.

As the worst workers are removed from these collection networks, certain debt collection agencies are going to lose their most important clients. Creditors will also have less reason to work with companies that have a reputation for being inappropriate. The financial effects of this will cause these companies to suffer, and company value will also fall with some owners forced to sell their companies in distress.

As this happens, the most efficient performers will see a lot more potential job growth, less competition, greater leverage on contract terms, better revenues, and improved profitability.

Within the debt buying market, the same type of transference is also taking place. Instead of calling on more debt buyers, some creditors are lowering the number of companies they approach for selling the accounts.

Smaller, less efficient debt buyers will begin to a smaller chance to buy from these issuers. Again, concentration within the primary debt sales market will increase. Recovery executives within credit businesses will be making the same kind of choice more and more, picking concentration within their vendor networks over diversification.

Mallory McGuinness works for a collections agency that works with a debt collection lawyer. She also composes stories on business, finance, the credit industry and collections agencies.

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Aggressive Article Peeves Off Collection Agencies

On March 5, 2010, In Uncategorized, By Mallory McGuinness-Hickey

In a business column dated January 20, Baltimore Sun writer Jay Hancock seems to bask in the fact that a prominent accounts receivable management firm filed bankruptcy in the midst of an unemployment-driven recession. Speculation suggests he may have threatened violence against collectors.

Hancock writes that collection agencies are working poorly to recover money because in a recession people owe more money. Unfortunately this argument runs in circles, many collection agencies protest. Yes, debt collectors will get much more work when credit defaults are on the rise. But the collections industry, like any other, depends on the financial stability of consumers. If they do not have the money to pay back the debt, collection starts to seem like a moot point.

Even though many of his economic theories and beliefs are erroneous, Hancock discusses later on in the article the bankruptcy of debt collection law firm Mann Bracken, proposing that violence against debt collectors may be an acceptable path to justice. Because Mann Bracken had an order to stop debt collection activities, thousands of cases filed by the firm against consumers will be tossed out.

Hancock’s reaction is a little bit shocking. “A firebomb tossed into the company’s offices could not have been as effective.” Really? You want to firebomb the office?

It is clear that people take their interactions with collectors very personally. Some handle it well, some do not. It is hard to believe that there are swarms of consumers out there wishing physical harm to debt collectors and their offices. On the flip side,unfortunately, debt collectors are people with emotions as well. Your debt is their commission. While most collectors follow protocol, there is that one occasional jerk that gets you really angry. Founded or unfounded as these feelings may seem, it appears that things have taken a turn for the worst when violent threats pass as a business column.

Mallory McGuinness-Hickey is employed by collections agency Rapid Recovery Solution and writes stories on collections and finance.

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Navigating Through Consumer Debt Collection – A Guide For Debtors

On March 5, 2010, In Uncategorized, By Mallory McGuinness-Hickey

It begins with the mail. Then more aggressive mail. Then come calls on the telephone and worst of all, threats about credit reports or even a potential lawsuit.

Collection agencies are often hired by creditors to retrive debt. Because many of these companies work for commission, the collectors are more likely to go after the money owed with gusto. Although this may all seem intimidating, it is important for you to know your rights.

Collection agencies in reality do have the right to report your debt to credit bureaus. Satisfying the debt will not result in it being removed from your credit reports. Instead, it will be marked off as “paid.” Collection agencies also can request a debtors credit report to analyze the person’s financial situation, or to get an updated address and phone number. Furthermore, although collection agencies do not like to send many accounts back, there are specific incidents where they will refer their account back to the creditor and recommend filing a law suit.

There are rules and regulations by which collection agencies must abide. Letters should come in ambiguous envelops that do not reveal that any type of debt is owed. In terms of phone calls, a collector may not disclose the reason for the call. For example, if a collector reaches an answering machine, they cannot divulge why they are calling, all they can do is leave their name and a number where they can be reached.

Although collection agencies are allowed to contact a debtor’s job, they absolutely cannot try to get a debtor fired from their job. They absolutely cannot make any kind of information concerning the debt public, except when dealing with credit bureaus. Although many people think that a collection agency could legitimately seize a debtor’s bank account, paycheck and assets, the company cannot unless their has been a legal proceeding ordering them to do so. Collection agencies absolutely cannot threaten a debtor with violence.

Despite the fact that some collections agencies may attempt to practice illegal tactics to get money, there are also a large number of reputable ones. With important issues like debt, it is always a priority to know your rights.

Mallory McGuinness-Hickey does freelance writing for debt collection agency Rapid Recovery Solution . For more information contact seo@rapidrecoverysolutions or simply click on the hyper link.

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Debt Collection Companies Are Cutting Out Paperwork

On March 2, 2010, In business, By Mallory McGuinness-Hickey

Everyone seems to be “going green” right now and collection companies are now following suit. Agencies such as Pacific Northwest Collections are now eliminating paper files and instead are using a piece of software called Document Locater. The shift from paper to paperless has benefited the company in many ways.

Collection agents can now use the document locater to access files for information and can use the data to answer debtor questions over the phone in real time. This is beneficial because it is more efficient. Before, payers often had to wait on the phone for information, or even for a call back from the company.

Because contacting debtors may prove to be difficult, the ability to quickly access information is a useful and effective way to collect. If a collector does get a payer on the phone, it can prove to be frustrating for the person to wait on questions and often times a they may not be able to answer a call back from a collections company.

The new system has turned out to be profitable financially as well. With the new paperless system, hours of work are obliterated. No more typing, filing, or copying is neccessary, leaving collectors with more time to get in contact with debtors rather than do clerical work.

The new system also helps the company to appear more professional. It may seem like a collection agency is uninformed when they cannot access pertinant information in an effiecient way. The more legitimate an agency seems, the more likely debtors are to take the company seriously. Although shifting the information to software and purchasing the software itself may at first be costly, the entire procedure seems to pay for itself. A manager at Pacific Northwest Collections says that the company saves $2,000 with the new system.

In a recession, collection agencies are struggling with retrieving money from debtors. Companies who are creative and have the ability to think outside of the box may very well turn out to be the most successful.

Mallory McGuinness-Hickey works for debt collection agency Rapid Recovery Solution and writes free lance articles on financial news and other subjects.

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