Oct 18, 2011 Posted on Oct 18, 2011 in Business | 1 comment

Businesses with Uncollected Debts

As a small business owner, in the business of creating on-line payday loans as well as in-shop payday loans at four shops, I identified the use of a great collection agency to collect our uncollected debts to be a useful asset that, when we had tried, became an arm of our company that we could not live with out. Having tried in-house collections for a number of months to attempt to collect our sizable uncollected debts, we soon determined that we were on the incorrect track and desperately needed a excellent collection agency or two.

Once we submitted a portion of our uncollected debts to a collection agency, we instantly saw the positive aspects in the form of professional advice and superb organization of consumer information via state of the art software program and support personnel.

Following utilizing numerous national collection agencies, I must say that I have found that most, if not all, utilize up to the minute real-time collection software program, thereby increasing exponentially the bottom-line of those firms who have the presence of mind to hire an excellent collection agency when they find themselves inundated with uncollected debts. We located ourselves in just such a position with each our on-line payday loan clients, given that we were writing 2,000 loans per day, as well as with our in-store consumers who, even though smaller in numbers and longer-term clients since some had been with us for 10 years, we all know that even a good consumer can go poor in a poor economy.

In order to collect on accounts receivable, we now only make use of our in-house collection department, for only the payday loans that are less than 30 days past due and then we outsource the rest. The percentage of our total loans that goes out to the collection agency in any given month is at least ninety percent and we are more than happy to do so since their expertise and diligence has greatly increased our profits.

The little percentage of the payday loans that a collection agency charges for its services is instantly offset by the decrease in overhead and the increase in profits that any company with uncollected debts will recognize. At my payday loan business, we have identified that outsourcing our loans is a sound profitable business decision.

One Response to “Businesses with Uncollected Debts”

1. Johnathan Lordon says:

   October 18, 2011 at 9:30 pm

   Thanks for writing this new article, Josh. This is a great review on debt collections and how they can be useful for any company. We are going to review the companies for our own use. Thanks again!

   Reply