debt collection agency

Basics of ethical and swift debt collection

Whom would you choose to make sure your debts are recovered properly? It can get complicated as one debt collection agency can have entirely different means to recover payments from customers. Without a doubt, there many benefits of choosing a debt collection service to help you out. But regardless of your options, the best debt collection service must have certain elements that make it stand out.

  • They must have a reputable portfolio with dozens of multinational clients.
  • They must have compliance, training and development through process and compliance audit regimes.
  • The company must have a good reputation in recovering debts for their clients but it should also consider debtors as part of their Social Responsibility, offering them affordable payment schemes that best suit their financial profile.
  • They claim to stick to ethical ways of collection and ensure stability for their clients and ease for the debtors.

What customers want to see in an exceptional debt collection company:

  • Effective, ethical and fast recovery of your money.
  • Strong and powerful motto that describes their honesty and commitment to work
  • List of high-profile clients that speaks volumes about their reputation in this business.
  •  Innovative schemes and technology to trace debtors
  • Stress free process for the debtors that motivates them to repay their dues easily.
  • Informative and effectively outlines website that serves as a guide to delinquent customers as well as clients.
  • Multiple points of contact, such as phone, email and online support forms

Abacus Credit provides debt collection services using modern technology and experienced professionals. Here are some important factors showing why this company is different.

What a good debt collection service can do

A good credit management company should aim to provide quality and ethical services to preserve the name and reputation of their clients. It should aim to get highest possible return on each dollar, proving instrumental to their client’s financial stability. If a debt collection agency has these attributes, it will be able to collect receivables much quicker than others.:

  1. Locating debtors: Ability to trace most recent contact information about the debtors even if they have left town to avoid repayment.

  2. Demand Letters: Ability to handle demand letters for the debtor and take strategic steps with each out going letter by augmenting aggressiveness in the demand.

  3. Email Support: Ability to send out emails to the debtors in addition to letters to ensure they are notified through all mediums.

  4. Visits: If the telephones or emails do not succeed, they must arrange for visits to directly negotiate with the debtor.

  5. Gathering intelligence: As some debtors can try to hide, a good debt collector helps gather intelligence about them in order to track them.

  6. Legal Actions: They must have a panel of highly experienced lawyers, ready to take legal actions should it become necessary.

  7. Reports: Since client satisfaction is a priority, clients should be updated with progress reports.

  8. Foreign Networks: They should have a strong network of associates all over the world, making collection from foreign based debtors the same as that for locals.


Collecting debt isn’t easy, but it’s not impossible either. You should have a positive frame of mind, energetic and knowledgeable team and a set of qualified attorneys to get the job done.

4 methods to improve debt collection

There is a definite reason why small businesses vanish in just only the first five years of their existence and this reason is the debt collection issue. The proper flow of money is essential for any small business to flourish. If you face a lot of debt collection issues in the starting phase of your business, you will not be able to sustain your business for a long time. One bad debt can either make or break a small business. Therefore proper consideration should be given on how to manage your debts in a proper manner.

There are measures that could be taken in this regard to ignore or minimize the bad debts. These measures are discussed as under.


Payment policy should be defined

It is essential for you to have a proper payment policy before going into the business if you want to minimize the risks involved with bad debts. The customer should be well aware of what he owes to you and when are the deadlines for making the payments.


Dealing with debts in a proper manner

There should be a proper procedure for dealing with the bad debts and everyone in your company should be aware it. There should be a point of contact between you and the customer or the business that owes you the debt and is being late with the payments. The easiest way for you to collect the debt is through negotiations and if that does not work legal action can be taken.


What should be your path?

It is not quite beneficial for your company if you are writing the bad debts off; they will accumulate in big amounts and will dent your business pretty badly. There are paths that you can choose instead of doing such a thing. Choosing a debt collection is the best option for you in this regard. You can discuss your case with the debt collection agency and ask them to assist you in recovering your debt. The most important thing to consider when doing so i.e. hiring a debt collector services for your business, the individual or the business that owes you debt should not have filed a bankruptcy. If bankruptcy has been filed by the debtor than it is impossible for you to collect the dept unless the court decides approves it.


Which debt collection agency to choose

When you make up your mind that you want to go for a collection service to recover delinquent receivables, your choice plays an important role. You should know the reputation of the company whether it is licensed or not, if the company follows all the state and federal laws relating to debt collection. If you choose a company that does not comply with all the above attributes it can create a bad impression for your business.



Although there are a lot of options to choose from when talking about thesedebt collection agencies, a proper research needs to be done when you are choosing one for your business. 

4 effective methods for credit management

Credit Management holds quite an importance in a person’s financial dealings. It is something that most people have to take care of to avoid getting into any troubles from the financial point of view. Regardless of how much a person earns, credit management is almost a necessity to ensure that the cash flow remains smooth all the time.

In easier words, credit is the name of borrowing money. It depends on the person’s ability to repay on in time. Banks and financial agencies therefore grant credits to only those who maintain a good credit history and pay their dues on time.

With so much going on in a person’s life, it can sometimes be difficult for a person to maintain a good credit record. One emergency and all your finances could go out of shape. However, there is a way out of this situation.

If you plan your finances and your credit management, you would be able to cater to urgent situations as well as pay your credits and debts on time. The following credit management tips will save you from unnecessary calls and reminders from the debt collection agency.

Organize your Budget

The first step when you plan to apply for credit is to get a good idea of how much you earn and spend throughout a month. Maintaining a budget is a good idea in this regards. Plan out your budget and then see whether you need a credit card or not. It is always good end up with an income surplus every month.

Ensure you Eligibility

In order to apply for credit, you have to be qualified enough. Buy qualification, it means that you should have a clean and good history that says you pay your debts and dues on time. Normally, banks and agencies look for a few things while granting credit.

One should have an income source and some assets if things don’t turn out well. One very important thing to remember is that you should ensure that you can go on without credit because it is always not guaranteed that you will be granted credit.

Types of Loans

Once you have been granted with credit, you have a choice. There are two types of credit loans i.e. secured loans and unsecured loans. Secured loans are based on monthly repayments and installments. Unsecured loans are the ones which depend on the ability of a person to repay. Credit cards are commonly unsecured loans where people can have greater credit limits. As a lender, one should always be mindful of debt collection rights when a debt collector came knocking on your door in order to avoid unnecessary arguments.

Limit your Expenses

Getting hold of a credit card doesn’t mean that you get a free license to spend freely. Keep in mind that you have to repay for your expenses so spend wisely. Try to limit your expenses as much as you can. Stay within your credit card limit. Exceeding the limit causes a drop in your credit score.