The Collection Advisor

7 Sure Signs You Need a Debt Collection Agency

Posted by Brian Summerfelt on Sep 13, 2018 6:55:00 AM

If your business has never used a collection agency before—or even if you have—you may be unsure about when is the right time. 

How bad do things need to be in order to escalate matters and send an account to collections? In general, not very bad at all. In most Canadian provinces and territories, the statue of limitations on debt is a mere two years. What’s more, you deserve to be paid on time, always, so it should NEVER have to get that bad.

Here are seven sure signs it’s time to send a file to collections:
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Topics: Collection agencies, Commercial Collection Agency, Business Strategy

How Overdue Receivables Can Ruin Your Life (And What to Do About It)

Posted by Brian Summerfelt on Aug 14, 2018 12:47:17 PM

It’s a fact: business owners have a ton on their mind.

Entrepreneurs are statistically more likely to be worried, stressed or depressed than the general public, a fact that will come as no surprise to most owners. You have to manage partnerships and cope with lost deals, human resource issues, ever-increasing competition, shrinking margins, regulatory issues and a daily barrage of other surprises. You may be tough and smart, but you’re only human.

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Topics: Collection agencies, Business Strategy

New Brunswick Gets it Right on How to Deal With a Collection Agency

Posted by Brian Summerfelt on Jul 25, 2018 12:45:15 PM

When it comes to knowing how to deal with a collection agency, many people are unsure.

Sadly, the same applies to some governments. The rules governing debt collection agencies differ by Canadian province, most of which don’t do a fantastic job articulating what a consumer ought to do when a collection agency calls.

This is where New Brunswick is a standout. The province’s Financial and Consumer Services Commission (FCNB) posts some helpful information on its website, including this advice (posted here verbatim):

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Topics: Collection agencies, Consumer Debt Collection

5 Reasons Never to Use a Collection Agency (And Why They’re ALL Wrong)

Posted by Brian Summerfelt on Jul 23, 2018 2:48:38 PM

Any business that provides credit terms to its customers will face occasional challenges collecting debt. It simply comes with the territory.

Yet not all entrepreneurs are comfortable sending overdue debt to a collection agency—even when experience shows that aging accounts bear an ever-increasing risk of morphing into bad debt writeoffs.

Ironically, the most common reasons business owners and AR Managers give NOT to use a collection agency are based on old misconceptions. Here are 5 reasons to never use a collection agency, all of which are completely wrong.

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Topics: Collection agencies, Business Strategy

You’re Not the Bank: It’s Time to Stop Financing Other People’s Business

Posted by Brian Summerfelt on May 7, 2018 1:12:14 PM

Do some of your customers take unreasonable time to pay, consistently holding out for 60, 90 days or more?

In most cases, they probably have (or could find) the money to pay much sooner. They ought to—having made the purchase and agreed on your terms in the first place.

The reason for the delay is simple. To be blunt, they’re using you.

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Topics: Collection agencies, Business Strategy

11 Powerful Debt Collection Tips to Always Get Paid on Time (If Not Sooner)

Posted by Brian Summerfelt on Jan 8, 2018 6:22:00 AM

For most entrepreneurs, collecting overdue bills doesn’t come naturally. It can be awkward asking someone to pay their late invoice. It may even feel like you are imposing on a customer.

Unfortunately, collecting on overdue invoices is a very real part of any business that grants credit. But it should never be a major part of your activities, and bad debt should be a rare occurrence.

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Topics: Collection agencies, Business Strategy

Collection Agency Horror Stories (Updated)

Posted by Brian Summerfelt on Oct 17, 2017 2:25:12 PM
UPDATED: New Story Added Oct 2017
First published Oct 2016

Debt collection can be the stuff of nightmares for many business people.

Chances are, your receivables have kept you awake far more nights than fear of a zombie apocalypse or of chainsaw-wielding maniacs. Debt is terrifying, because it’s real life. (Even more so than those other things.)

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Topics: Collection agencies, Debt Collection

10 Businesses You’ll Never Guess Use a Collection Agency

Posted by Brian Summerfelt on Oct 10, 2017 10:21:41 PM

Quick, what does a typical collection agency client look like to you?

If you’ve ever received a collection call for an unpaid cell phone bill, you’ll be familiar with at least one type. Telecommunications companies, who need to collect overdue mobile or Internet bills, make up a substantial volume of our work.

Banks and credit unions are another. At MetCredit, we work with many, and have provided uninterrupted collection service on loan and credit card defaults to one of Canada’s Big 5 banks since 1974 (which was only our second year in business).

In short, the obvious guesses would be right.

But there are a number of unicorns. Here are 10 business types you probably wouldn’t expect to use a collection agency, but for whom my team and I have successfully recovered debt:

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Topics: Collection agencies, Insider Debt Collection Tips

8 Surprising Ways a Collection Agency Will Increase Your Profitability

Posted by Brian Summerfelt on Aug 29, 2017 7:51:00 AM

Why the heck would we pay a collection agency for something we can do ourselves?

That’s a question entrepreneurs often ask, and it’s symptomatic of not having worked with the right debt collection partner. The truth is, few businesses of any size are equipped to collect overdue debt effectively and consistently.

The reality is that a good collection agency complements your business activities and makes you more profitable.

Here are 8 ways a collection agency can increase business profitability:

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Topics: Collection agencies, Business Strategy

Why (Most) Collection Agencies Fail to Deliver

Posted by Brian Summerfelt on Jul 11, 2017 9:29:37 AM

There’s a problem with collection agencies, and I‘m not afraid to say it.

Most do a lousy job. 

And failing to collect a debt wastes precious time, which hurts your business. It’s also hard on my industry’s reputation, because there really is no more effective way to collect business debt—but only when done right.

Here are four reasons ordinary collection agencies fail to collect debt for their clients:

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Topics: Collection agencies

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