Debt is something that is owed and is usually owed against assets, or things of monetary value. Some may think that debt is a bad thing and may be right with the recent financial turmoil. For all of the hindrances of debt, there are actually a couple of good benefits that come along with it.
First off, debt allows people to make purchases they would not be able to do. How many people would have $300,000 lying around to purchase that house? Exactly, a mortgage is a type of debt that allows people to purchase a house and pay it off in terms. This is a great benefit for many homeowners. The same can be said for the car, the television, or even that vacation you took last year. Debt is a good tool when used properly and in moderation. The only time it becomes a liability is when people abuse its powers and get too far down the debt hole.
Debt is also a good tool for businesses, small and large alike. A business takes on debt to hopefully grow and become larger. This is called leverage, when a company uses its assets as collateral for a loan or debt. Most small businesses use some form of this. The larger companies do this as well, but in much larger terms.
So, as you can see debt is not such a bad thing. It can help people afford large purchases and even help businesses grow. A problem is when someone or some company use it as a crutch. If you use debt wisely and cautiously, you will keep yourself clear of long term debt. Make sure you pay off your bills on time and never take out more than you think you can pay back. You can never exercise too much caution when taking on debt.
When debt collection is performed with a sense of urgency, then the chances of actually recovering the bad account increase exponentially. There are many reasons for this, but let us analyze a few of these reasons.
- Age of the File - The age of a bad account actually plays a huge part in whether it is recoverable. Why is this you ask? As we all have witnessed, businesses can go bankrupt seemingly overnight. They can also change their number or move locations, making it harder to track them down. Management changes and they may not have any idea about the debt. Some businesses keep bad books too, so the older a file is the harder it is to track down the invoices to prove that they actually owe the money. Needless to say, the sooner you can act on a file, the better off you are.
- Motivating the Debtor – If you call the debtor and have no sense of urgency, then you are unlikely to inspire them to repay the debt. If you call up and light a fire under the debtor and instill a strong sense of urgency, then you can turn the tide with the debtor. This has been proven time and again in our business. When we call and set firm deadlines with the debtor, we are able to recoup your monies at a substantially higher rate than without deadlines and urgency.
These are 2 of the main reasons to act with urgency and a sense of expediency when implementing your debt collection tactics. Otherwise, you will seldom collect and be sitting there with a pile of old debts, that could have been recovered.
Credit and debt are not a new phenomenon. They have been around for thousands of years, the only difference is that the consequences were much harsher in the past.
The ideas of credit and debt were first formed when someone would lend cattle to a neighbor and would expect to repaid with more cattle, because there would be more cattle at the end of the term. From this stemmed the idea of interest, and soon people could undertake debt on their purchases.
In the old days, farmers would buy a piece of land and finance it. They would have to repay the land by working and harvesting the land, thus there was a strong motivation for the farmer to repay the debt. If a farmer was not able to repay this debt, then they would either have their land seized or would have to sell themselves into slavery. This was much more motivating for the debtors and they normally produced higher than a farmer who was not in debt. Wouldn’t you?
In today’s day and age, debt and credit are still prevalent. The repercussions from not paying a debt are no where near as harsh. The most punitive consequence of not paying a debt is that your credit score will suffer, which will prevent you from receiving other loans.
When speaking of debt, The United States always comes up, which has a national debt of almost 13 trillion dollars. The United States is run on debt, and this debt may be a ticking time bomb.
Transportation is a part of business. How do you get your product to the right place at the right time? There are many options to use for transportation and not all are equal. A big problem that many shippers run into is not being paid on time.
Shippers move items from point a to point b. The items are not theirs, but are shipped by companies and individuals who agree to pay the shipper for their services. The average consumer has to pay for these services beforehand and is not able to pay on credit. The larger volume shippers are able to ship on credit because they represent a larger portion of a shipper’s business.
Transportation debt collection is necessary for businesses when one of these large customers does not pay for their shipping services. What makes things interesting is when this involves international shipping and the parties are from different countries. Laws change as you cross over border lines and this makes collecting transportation debts a challenging process. Whether this involves a cargo ship or cargo airline, the challenge is finding out who is on the hook for the unpaid funds.
A good transportation collection agency will be able to track down these people and motivate them to pay. What makes collecting transportation debts difficult, is that not every country has the same laws as the United States. It is much easier for a debtor to hide behind country lines. Phone service and means of contacting the debtor may not be as reliable. So how do you collect an international transportation debt? The best thing to do is to turn the account over to a specialized debt collection agency with forensic corporate debt collection capabilities. This will give you the best chance in collecting the overdue debt. You can try to collect the debt yourself, but when you cross international border lines the complications grow exponentially and it is best to let a true professional organization handle the claim.
Are you looking for a Florida collection agency? There are a lot of choices out there, but hopefully in this article we can help you find the best of the best when it comes to Florida collection agencies.
Florida is ripe with debt collection firms. Why is this you ask? Well, Florida has different laws which allow non-commercial collection agencies to collect business debt as long as they do not collect over half of business debt. This effectively allows consumer collection agencies to collect business debt at the same time. In general there is not as good of money in consumer accounts. They are also harder to collect, due to the legal restrictions with the FDCPA (Fair Debt Collection Practices Act). This puts limits on what tactics collection agencies are able to use.
So with this in mind, how do you go about sifting through the huge number of Florida debt collection agencies? First off do a search about the company and see what you can find. If there are a lot of negative reports about them, then you want to move on to the next agency.
How long have they been in business? This is very important because most second rate organizations do not stay in business for more than 3 years. If you are working with a company that has been in business for longer than this then you are more than likely dealing with a professional debt collection firm.
After you have found a minimum of 3 Florida debt collection companies that you are interested in hiring, call them and see what their rates are and make sure they work on a contingency basis and guarantee collection. You should not have to pay any upfront fees and be cautious of anyone that asks for them.
Good luck in your search for a Florida collection agency. Choose wisely and let a great organization represent you.