Tag Archives for " accounts recievable "

Let's talk about common mistakes prospective clients make when choosing a collection agency.

Since we are a collection agency, and we are talking about collection debt, let's talk about money right up front.

1... PRICE! The first mistake we see is making your decision based solely on price. We really strive to give an extremely fair and equitable price to our clients. That doesn't mean we are going to be the cheapest if simply look at price on the surface. But when you look at the results we get then the math works out REALLY WELL because we get you a higher net result.  We actually collect more and put more money into your pocket.  Hire someone for performance.  You won't find a Gucci bag at Walmart so don't expect to get the best results from the cheapest agency.

But don't just take my word for it.  Check out some of our reviews and ask to see some of our references and current clients.  You'll be able to ask some of the important questions that you may not feel comfortable asking our representative.

The five factors we base pricing on are: 1. The age of the account.  2. The average size of the account. 3. The average annual volume sent to us. 4. The amount of demographics listed with the account. 5. Does the client have the ability to list the accounts electronically?

2... CHOOSING ONE SIZE FITS ALL. We have the ability to customize programs to fit your specific needs. There's all different types of businesses out there and the collection process can vary. A good example is an oncology clinic, a cancer clinic. Their patients are handled considerably different than say for instance, a contractor that did a bunch of work for someone and there's materials and labor involved that they were not paid for. So we can customize programs to fit whatever your needs are.

We as a collection agency are really just an extension of the client that we're working for. And so we try to protect the client's reputation or have that in the foremost of our minds. Nebraska is a pretty small place and you may see your customers or patients out and about in town. And the last thing we would want is for you to run into them at the bank or grocery store and have and uncomfortable encounter. So we put a lot of energy into our collection methodology for our clients so they can maintain that respect and relationships.

The collection methods in which we use, I wouldn't say we're the most aggressive, I would say we are very assertive and we're an accountability partner. A lot of our clients are ancillary. So it just takes a simple explanation to get the account collected. A lot of times explaining to people that are overwhelmed or get inundated with a bunch of the different bills of what those are. So they understand those.

3... INDUSTRY SPECIFIC KNOWLEDGE. One of the other things that you want to look at when choosing a collection agency is their knowledge of individual industries. So for instance, if they give you all these nice neat reports, but they don't know the intricacies of your business, so they don't know the needs of your customers, and they may not get the best results for you. Remembers, we are an extension of your business so we have to know your business.

I can tell you by talking with a consumer, trying to collect a past due debt, that if they know we can speak their language about what the interaction was, they trust us more. And then we can help them get to a resolution and get the account paid for the you.

And things change all the time. There is no college curriculum that can teach you collections. It's an ongoing, ever evolving, changing business that we have to learn and be able to it act quickly to protect you as the client.

4... UNDERPERFORMANCE. Another mistake we see with clients and collection agencies is that sometimes they'll stay with an underperforming agency just because they think it's too difficult to switch. We've switched multiple clients that have had that reservation and they are surprised how easy it is. We help you through that process so that you can easily move from the underperforming collections agency.

We can even help you with your client intake process as well, to help you gather more information on the front end. So you collect more prior to coming to collections. But when it comes to collections, all the information is at our fingertips making our job easier to collect more money for the you. And we'll do that at no charge as part of the consultation.

If you would like a consultation to see how our collection agency can help your business, please give us a call and we'd be happy to meet with you and show you how we can collect your past debts with integrity.  We can also show you how we are one of the industry leaders and have some of the best numbers available.

Call 402-817-3929

When you’re newly married, you’ll probably face some new challenges and might not feel that you’re ready for these new responsibilities. A lot of young couples don’t anticipate how different managing their finances can be once they get married.

It’s important to understand how merging your finances will impact the way you spend and manage money. There are common mistakes most couples make, and you can avoid some difficulties by being aware of these errors. 

These are the five most common money mistakes young couples make:

1. Not communicating about money. It’s crucial to talk about money and agree on how you wish to spend and save money as a couple. You’ll find yourselves fighting over money issues if you avoid this for too long or if one spouse isn’t upfront about money.
2. Failing to build your savings. You might feel that you’re not earning enough to save money, but most couples can find at least a little to save by cutting back on the more flexible expenses. Cover your bases and prepare for a brighter future by saving for these events: 
   • Starting a family. Going through a pregnancy and raising a baby is expensive!
   • When you’re ready to settle down, you’ll need a down payment to buy a home.
   • Children’s education. College is expensive and it is never too early to start 1saving.
   • Health expenses. Open a health savings account if you don’t have a comprehensive health insurance policy.
   • Retirement. Being young means you can take more risks when you invest and saving up early will help you retire more comfortably. It also gives your savings time to grow from the interest you’ll earn over many years.
3. Failing to effectively manage debts and credit cards. Some couples encounter challenges because one person wasn’t upfront about how deeply they’re in debt or because they use their credit card too often. Even though both spouses still have separate credit scores, both should be responsible for managing debt and credit: 
   • Set some goals and strategies to raise both your credit scores.
   • Decide what your credit cards should be used for and how much you can charge on them.
   • Make paying off your loans or outstanding credit card balances a priority.
4. Buying a house before you’re ready. You’ll see benefits in waiting until you’re financially stabile before purchasing a house. There are still some costly mistakes to avoid once you are ready to buy a home:
   • Buying a house that is too expensive to fix or maintain.
   • Applying for a mortgage you can’t afford.
   • Not making a down payment that is large enough to lower your mortgage.
   • Failing to take advantage of the help available to first-time buyers.
   • Buying a house before taking the time to raise your credit score.
5. Not looking for ways to strengthen your financial standing. You can set some financial goals and do your best to save money, but most young couples eventually need to find a way to earn a higher income to meet their goals.
   • You could, for instance, make some plans for your career, move to a city where you can get better jobs, or decide to go back to school.

If you think you’re making any of these mistakes, it’s a great time to schedule a money discussion. Make plans to bypass these mistakes and get started on the right track for a bright financial future together.

It’s possible to raise your credit score with some simple changes. Credit scores affect insurance rates, loan interest rates, and other important financial products. A higher score can lead to a brighter financial future.

Consider using these ideas to raise your credit score:

1. Piggyback on good credit histories. You can use a family member’s or friend’s good credit history to help you.
   • If you add yourself to an account in good standing, your credit score will go up.
   • Most credit cards allow users to add family members and distant relatives to their accounts.
   • You’ll be an authorized user on the account and able to make purchases and pay the bills.
2. Keep old accounts open. It’s important to keep older accounts like credit cards open because they influence credit scores. Credit scores can decrease if you close accounts.
   • Account age also matters. Scores are affected positively by older accounts because they show a history of maintaining credit.
   • Plus, these old accounts add to the amount of credit you have access to, thus lowering the percentage of available credit you’re using, which raises your score.
3. Set up auto-payments. Automatic payments are a convenient way to pay bills every month. They’re also an easy way to avoid a late payment and a fee. Auto-payments can help improve your credit score by preventing these issues
4. Pay credit card bills more than once a month. Credit scores rely on a debt utilization ratio. This ratio compares how much debt you have to the size of your credit limit.
   • One way to improve credit scores is to lower the debt utilization ratio.
   • Paying your credit card bills more than once a month can help you improve the score by decreasing the ratio. Extra payments lower your debt while increasing how much credit is available during the month.
5. Ask for good-will deletions. It’s possible to ask credit reporting agencies and lenders for good-will deletions. 
   • Late fees, late payments, or unpaid bills can affect credit scores. A good-will deletion is a request to remove these items based on a prior good history. This method works best if you’re a long-term customer with few issues.
6. Avoid pre-approved offers. The pre-approved offers that come in the mail usually require a credit check, and multiple credit checks affect your credit score by lowering it.
   • It’s also beneficial to avoid creating too many accounts. It’s easier to manage a smaller number, so you’re less likely to make mistakes.
7. Avoid new utility accounts. Utilities like gas, electricity, and phone services require credit checks that lower scores. It’s better to transfer utilities to a new address instead of opening new ones.
8. Remember library fines. Did you return all of your library books? Unpaid fines can decrease your credit score, and libraries can send unpaid bills to collection agencies
9. Avoid online quote comparisons. Online quotes for insurance or loans count as inquiries on your credit score. These credit checks affect the score each time you ask for a quote.
   • Getting quotes from multiple websites can lead to many credit checks. It’s best to narrow down the options before getting a quote, so your score isn’t affected.
10. Establish long-term credit. Instead of switching to a new company that promises lower rates for a few months, consider staying with the previous one.
    • Credit scores go up based on positive, long-term relationships with lenders.
    • It may be tempting to take the lower credit card offer from another company to move balances, but your score may suffer.

It’s possible to raise credit scores with several strategies. Careful planning is an important part of getting a higher score.

Most people view estate planning in the same way they view a root canal: Put it off until the pain is too great to ignore any longer. Also, those with little income or net worth believe that estate planning doesn't apply to their situation. But estate planning is much more than just the allocation of cash, real estate, and other assets. There are other things to consider, too.

There are many errors that occur again and again in estate planning. Avoiding these mistakes is half the battle.

Steer clear of these mistakes for a successful estate plan:

1. Procrastination. Estate planning is a little like completing a tax return. No one really wants to do it. But it's so important to push your reticence aside and get it done!
2. Not paying attention to the conflicts that exist within your beneficiaries and estate plan. For example, if your will declares that your husband receive your retirement account, but your ex-husband's name is still listed as the beneficiary, this could prove to be a big challenge.
3. Not using the unified credit to your advantage. This only applies to those with a significant net worth, but this mistake is made regularly. In most cases, assets pass to the surviving spouse. Up to $5,250,000 can be excluded from taxation.
   • If this isn't handled properly, though, the surviving spouse will only have their exclusion available when passing assets on to their heirs.
   • There are ways to potentially shelter this money from taxation in the future. One solution is a credit shelter trust.
4. Not having adequate life insurance. Life insurance can be a great estate-planning tool for the affluent, but life insurance is vital to those with low income as well.
   • Consider how your family will survive financially if you or your spouse were to die unexpectedly.
   • If you have significant wealth, you might consider using life insurance in conjunction with an irrevocable trust for tax purposes. An attorney that specializes in estate planning can make recommendations based on your unique situation and explain the details.
5. Creating a plan that lacks flexibility. Creating a plan with a little wiggle room will allow your heirs to take advantage of any new laws as well as use the assets in the most advantageous fashion.
6. Not gifting assets. Up to $14,000 can be gifted to each beneficiary per year without incurring a gift tax. This can be a great way of reducing the taxes imposed on your estate at the time of your death. You also have the chance to see how well your beneficiaries can manage your assets.
   • Additionally, you have the advantage of being able to witness someone enjoying your assets. You can't do that after you're gone!

Estate planning isn't the most enjoyable activity, but it is likely to be one of the most important things you do for your family.

Everyone should have a basic estate plan that spells out their wishes. This is important even if there are no children or assets. An attorney can be invaluable unless your estate is very simple. And even then, the $100+ it will cost to have an attorney take a look at your documents will be money well spent.