Improved Data Services

Improved Data Services Discusses Debt Recovery During Uncertain Times

The COVID-19 health crisis has indubitably led to difficult times for both individuals and a host of industries over the past few months. Spaces such as the debt recovery industry have found themselves walking a tight rope because of the need to continue settling debts while remaining empathetic of the situations debtors may be going through. Improved Data Services knows that patience and flexibility are virtues while communicating with individuals that are having difficulties making payments. In this article, Improved Data Services discusses some ways that debt recovery agencies can continue towards their goal of coming to debt payment solutions during uncertain times for us all.

Utilize Messaging That is Context-Aware

Improved Data Services acknowledges that, while it is important for debt recovery to be streamlined and efficient, this efficiency should not come at the expense of empathy. The current health crisis has been a tough situation for many, and it is important that outreach keeps this fact in mind as agencies seek to settle debts. Not only will the use of context aware messaging ensure that your communications are properly optimized and increase the odds of receiving payment, but it will also show consumers that you understand the complexities of their situation. Remember that optimizing content for a context-aware approach does not mean that an agency needs to increase the frequency of outreach attempts, as this is sure to anger consumers and make them less amenable to coming to a payment solution. Instead, tailor the tone of messaging to the situation at hand and maintain a level of breathing room between attempts.

Include Flexible Payment Options for Debtors

Improved Data Services acknowledges that providing flexible payment options for debtors can be mutually beneficial for a variety of reasons. For example, flexible payment plans can be representative of high-level customer service that can dramatically increase payment plan retention. The psychology behind this is clear- debtors are much more likely to pay down their debts when they feel as though the agency is working with them. This is particularly relevant when acknowledging that some consumers are currently experiencing unpredictable cash flow during the pandemic. Flexible payment options can make the process appear much more manageable in times of crisis, and companies that utilize them often find that the empathy instills a high level of trust. Improved Data Services recognizes how these facets of customer service make debtors feel more inclined to pay down balances.

Consider Online-Self Service Models

Online banking has been on the rise for several years, and the COVID-19 pandemic has influence has led to even more users coming to accept it as a necessity in this age. Because of this, debt recovery agencies can benefit from payment portals that allow debtors to make payments online without needing to communicate to agents to pay down their debt. While Improved Data Services does offer outreach via phone for its clients, the company also acknowledges that some debtors may be put off by back and forth communication to reach a payment solution. Matching the convenience of online banking by facilitating actions such as adjusting length of payment plan, disputing debt, or deferment can streamline the process of hearing back from those who owe. From there, agencies can get a better idea of how to drive communication moving forward as necessary.

Improved Data Services Discusses Tips for Hiring a Debt Collection Agency

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The need for debt recovery in business is almost universal, as even the most successful companies can occasionally have difficulty collecting payments from individuals that are determined to not pay. In these types of situations, it is recommended that companies hire a professional debt management or debt recovery agency that can handle outreach and utilize a streamlined approach for receiving payment from delinquent accounts. Even with the knowledge of these services and the distinct need for them, the act of comparing agencies can be difficult for companies looking for the best fit. Improved Data Services realizes that hiring a debt recovery agency can appear as a daunting task for individuals that are not sure of the specifics of the space and offers a couple tips to assist those considering consulting a professional.

Improved Data Services realizes there is truly no substitute for proper research when hiring a debt recovery agency. Keep in mind that debt collection agencies often specialize in a certain area of the field, and it is always a good decision to look for an agency that has worked for and collected debts within the space that your company works within. For example, some agencies focus more on collecting from large agencies while some specialize in collecting on behalf of small and home-businesses.

Depending on your industry, there could also be multiple levels of industry specific regulations that a debt collection agency would need experience with in order to properly and legally collect. The healthcare industry is an example of a space that may require specialized knowledge in order to collect for, and it is important for such industries to ensure that a debt collector is a good fit given their parameters. Improved Data Services acknowledges that the research phase of the process is also the best time to check specifics of the debt collection processes utilized by the agencies that you are comparing as well as their credentials. Don’t be too hesitant to make sure that a collector is licensed, bonded, and insured while you are considering them.

After narrowing it down from to a few agencies that you may want to do business with, compare costs to see which price points would be the best fit for you. Improved Data Services notes that this is also a great time to evaluate the payment structures of the collectors you are considering hiring. For example, some debt collectors are paid a flat fee, while some use a contingency. This means that they may not accept a fee if they are not successful with collection but will charge a certain percentage of the total collection when payment is collected that is dependent on the work involved.

Improved Data Services Helps Small Business Owners Avoid These Common Mistakes

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Improved Data Services often works with small business owners to fulfill or improve upon their debt collection process. Businesses that do not have a strong debt collection process in place can cost themselves valuable time, energy and resources. Today, Improved Data Services has compiled some of the biggest mistakes small businesses make in their debt collection process and what can be done to remedy them.

The first mistake made by small businesses is working without the safety net of a signed contracts. It is important to have contracts in place to protect the business and the customers. Clear and transparent paperwork ensures both parties are responsible to honor their obligations. In addition to protecting interests, it will also help settle any dispute that arises. It’s much easier to recuperate unclaimed fees when the client is contractually obligated to pay.

Another common mistake is not understanding the nuances between an outstanding payment from another business as opposed to an individual. There are different laws in place depending on the type of party who owes. This can make a world of difference in determining the best approach to collecting a debt. In addition to understanding these differences, a business should also do their research before taking on a client. Research upfront can help protect a company’s interests. Taking the time to do some basic research and collect some essential data can help ensure that a business is starting a relationship with a reputable source.

The biggest mistake a small business makes is putting the responsibility of debt collection into the wrong hands. Handling receivables correctly is the lifeblood of any business. Debt collection is often a task that owners try to take on themselves. Unfortunately, time is a requirement in this endeavor, which is something most CEO’s severely lack. Great leadership recognizes that they do not have the time to give the attention to debt collection that it requires. The choice then becomes hiring a partner or designating an employee to this task.

Finally, some small business owners decide to go the legal route with all their debt collection needs. This can prove to be incredibly costly. If a lawyer is successful, legal fees can still come back that all but wipe away any funds that were recuperated. Improved Data Services understands how to form relationships with people and businesses. Their team gets to know the issues at hand and does everything it takes to collect the debt in the best way possible for all involved parties.