Small Business Debt Recovery
Small business debt recovery knowledge is crucial even on opening day of a company. Knowing what the plan is for unpleasant transactions makes the actual event easier to deal with. Interviewing various companies before settling on one to work with will not only calm a business owners nerves, but also save the most money in the long run. Acknowledging the time saved by hiring a consumer debt recovery company justifies the fees charged for collection. Understanding state laws and certification granted to each company narrows the choices down quickly.
Hiring someone to handle all overdue financial responsibilities frees up valuable earning time as well as releases the temptation of attaching personal emotions to a commerce transaction. Even though commercial debt recovery services are hired, following a specific routine for collecting money owed in a reasonable amount of time remains the responsibility of the business owner. Clearly stating transaction terms at the time of consultation and not pressuring someone into spending more money than they want to can avoid commercial debt recovery thus making the company more money by not taking up more time collecting overdue balances or paying a small business debt recovery firm. In addition, offering to break the project down to small sections payable when the money is available may delay payment, but also create a better chance of receiving the entire amount in the end. In some cases these companies charge a monthly amount no matter what their workload, but take less from any debt collected on. This opportunity appeals to companies with large accounts and many overdue clients. Companies requiring minimal service would best benefit from the collections company taking a large percentage due to the infrequency of use.
Writing a good contract and quality collection letters can eliminate the need for commercial debt recovery services. A good letter is to the point, clearly states the consequences of nonpayment, and gives a straightforward timeframe for completion of payment. In some cases this letter will spark a phone call leading to payment arrangements. Understanding when someone is simply avoiding responsibility is difficult to the untrained person. Being fair and upfront with expectations lead to better professional relationships. After all means of collection from the original business have expired, all responsibility should go to the company chosen in order to keep the best chances possible of collection. Many examples are readily available online or through business organizations. Lowering the instance of turning clients over to collections not only increases gross income, but also maintains positive image of a company.
When interviewing companies to provide small business debt recovery consider companies that work specifically with small or home based businesses. These companies will have a better handle on the inner workings of this type of company and also understand the urgency for payment. While large corporations can wait years for a debt to be paid, smaller businesses cannot usually afford such luxury. Researching the type of clients each company specializes working will further ensures results when a perfect match is made. The ethics of a collection agency needs to follow that of the business it is representing. If a person (even though they owe money) feels threatened or abused by a small business debt recovery company then they might speak poorly about the company. Fully understand the technology used to trace people when they move or otherwise disappear. If a company doesn't have a plan for such instances then collecting money becomes difficult. Small business debt recovery licenses differ state to state and must be obtained in each state where a client wishes to do business. Make sure the company chosen covers all areas due to the instance that a debtor may move. Even if the primary business has one location, the consumers can live anywhere. If a debt is illegally collected then the money most likely will be returned and cost the filing company more money. Insurance is important if a debtor decides that the matter was not handled in a professional way. Some companies threaten, demand information, yell, swear, and lie to debtors simply to get a payment. This is illegal and even though a person owes money they have the right to sue a collection agency for harassment, which reflects badly on the business represented. "Finally, brethren, whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good report; if there be any virtue, and if there be any praise, think on these things." (Philippians 4:8)
When choosing a company do conduct this unpleasant work with, it is important to understand how much money they actually collect off the amount due. This amount is calculated by adding the percentage of the contingency fee and the success ratio of the company together in order to reach an amount possibly as much as 85%. Understanding when an account should be turned over to collections is important to maintain good business relationships as well giving enough effort and respect toward bad accounts. In most cases after an account reaches 30 days it goes to collections. Some telltale signs about when to turn a customer over to collections is when numerous excuses are made to get out of payment, denial of owing payment, and lack of correspondence. In short, after 30 days have passed without payment, correspondence, or payment plan negotiation a client should be turned over to collections. Statistics of commercial debt recovery show that after 30 days the chance of receiving payment lowers dramatically.
Medical Billing CollectionsToday's healthcare providers depend on medical billing collections to keep practices profitable and patient-friendly. Long gone are the days when doctors rode horse and buggies over the countryside to treat small town families for a hen and a gallon of fresh milk. Healthcare is big business and physicians need to watch the bottom line if they want to stay afloat in a sluggish economy. Faced with the high cost of medical malpractice insurance, expensive pharmaceuticals, qualified clinical and administrative personnel, office leases, and lagging medical insurance claims, twenty-first century docs need professional help to collect payment for services rendered.
An economy weakened by housing market woes and high interest rates has far-reaching effects on the consumer and the goods and services they buy, including healthcare. As employed and unemployed alike experience increasing difficulty obtaining and affording health insurance, hospitals, clinicians, and private practitioners are also feeling the pinch. People still get sick, but are increasingly unable to meet the cost of hospitalization, prescription drugs, chronic illness, and quality preventive health care. Government-subsidized funding programs like Medicare and Medicaid have proven inadequate to offset the expense most practitioners incur simply trying to stay in the business of keeping people alive and well. When patients default on payments, doctors and healthcare providers have to take drastic measures to collect.
Medical collection agencies specialize in recovering outstanding balances from uncollectible and slow-paying accounts, along with health insurance companies who may prolong compensating physicians due to paperwork backlogs. Whatever the reason for past due payments, a qualified medical billing collections agency renders physicians and healthcare practitioners invaluable service. One key advantage is that providers no longer have to risk losing good patient relations because of poor or aggressive collection practices. When it comes to healthcare, patients like to view the family doctor as a benevolent friend, not a brow-beating bill collector. In the past, doctors relied on staff to collect payment at the front desk. But it's not an easy task to look a patient in the eye while demanding a few hundred dollars on an account that is 90 days past due. But, medical collection agencies are faceless and impartial third parties qualified to address delicate matters like delinquent accounts without offending long standing patients. Doctors don't have to forfeit good bedside manners or deprive patients of quality healthcare in an effort to extract payment.
Delinquent bills not only negatively impact physicians profit margins, but can have an adverse effect on patient credit reports. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) prohibits medical collection agencies from disclosing information about a patient's treatment. However, loss management companies are well within the law when listing delinquent accounts on credit reports, which can adversely affect a patient's ability to get future financing. Most hospital administrators realize the difficulty patients have affording insurance; and a myriad of plans exist to help underinsured and uninsured patients pay for healthcare. Delinquent accounts can be forgiven, if patients can prove hardship or meet federal poverty guidelines. Forgiveness of debt is a common theme which runs throughout the Bible. "And forgive us our debts, as we forgive our debtors." (Matthew 6:12). God is willing to continually forgive us, as we are reminded to continually forgive others. Patient account advisors and external medical collections agencies sometimes offer debt reduction solutions to patients to defray or forgive a portion of delinquent accounts and recover at least a percentage of monies owed. Private practitioners, however, may not be able to retain in-house collection personnel; therefore external medical collection agencies provide an affordable option. Some external agencies work on a percentage basis, charging the provider only on funds collected. Medical billing collections firms generally use ethical means and legal options to enforce payment. From writing letters, to making phone calls and exploring legal options, such as lawsuits, medical collection agencies are adept at bringing delinquent accounts current and diminishing write-offs. Healthcare providers are free to focus only on providing quality care without misgivings.
Patients concerned about delinquent accounts should contact healthcare providers well before medical billing collections begin. Hospitals, private practitioners and other healthcare providers can make provisions for indigent and underinsured patients to resolve past due accounts over a period of time. If patients are receiving demands for payment from clinicians, radiologists, surgeons, and therapists and are unable to meet financial obligations, contact with accounts payable representatives should be made as soon as possible. Hospital accountants will assess patients' financial statements to determine if qualifications for assistance from federal and state funding sources can be met. Funds may also be available through indigent care trusts or third party charitable foundations which generously donate funds to cover the cost of providing care for those who cannot afford to pay. Indigent, underinsured and uninsured patients must meet certain income requirements to qualify for assistance or debt reduction.
As healthcare and liability costs continue to rise, physicians and hospitals will continue to be placed in the position of providing expensive care to consumers who have fewer resources to pay for them. The lack of affordable healthcare places low- to middle-income patients at a greater risk of chronic indebtedness due to an inability to meet outstanding healthcare expenses. In the future, medical billing collections may play an even greater role in the life of our nation's healthcare providers striving to stay financially solvent. Patients who can afford to pay for quality healthcare should not defer to pay providers for the invaluable service they render to individuals and to society as a whole.