Automation in Collections

Wondering what processes in debt collection can be automated?

Automation is one of the most impactful innovations in modern debt collection. Tools such as automated reminders via email, text, or phone can replace repetitive tasks and ensure consistent follow-up without overwhelming your team. These systems can be tailor-made based on the age of the debt or the client’s behavior, improving timing and effectiveness. Additionally, AI-driven platforms can help identify optimal contact times and channels, increasing the likelihood of reaching a resolution.

Self-service payment portals are another critical component of automation. They allow customers to view balances and settle debts securely without needing to speak to a representative. This not only speeds up collections, but also enhances the customer experience.

Learn more in our latest article.

End the Endless Search for Debt Collection Companies

We know that there are a lot of debt collection companies out there to choose from, so why pick RSD? Our team uses up-to-date technology and a non-hostile collection approach, which means our services are both efficient and empathetic. We’re also CLLA certified! 

To get started, call (248) 370-8160 or submit a contact form here. We look forward to taking the weight of debt collection off your shoulders!

The Role of Lawyers in Commercial Debt Collection

How can a lawyer help you with your commercial collection case?

Engaging a qualified attorney can significantly increase your chances of successful debt recovery, especially in complex or high-stakes cases. Legal professionals can assist with:

• Drafting demand letters that carry legal weight and encourage resolution without litigation.
• Evaluating the debtor’s financial situation and determining whether court action is likely to yield results.
• Filing lawsuits and representing your business in court, ensuring that all procedural rules are followed and your case is well-supported.

Working with a lawyer ensures that your collection efforts are both compliant and strategically sound, minimizing legal risks while maximizing recovery potential.

Learn more in our latest article.

You don’t have to navigate commercial debt collection alone!

Legal issues are an unavoidable aspect of commercial debt collection, but with the right knowledge and strategic approach, businesses can recover more—and do it legally and ethically. 

If your business is facing unpaid debts and you're unsure about your legal options, our team is here to help. Call (248) 370-8160 or submit a contact form to learn more about how we can support your commercial collection efforts!

What is the legal framework for commercial debt collection?

What rules do you need to be aware of when collecting commercial debt?

Commercial debt collections are governed by a different set of rules than consumer debt. Key among these is the Uniform Commercial Code (UCC), which provides guidance on sales of goods, secured transactions, and negotiable instruments. Familiarity with the UCC can help collectors understand how to enforce liens or reclaim goods when terms of sale are violated.

In addition, commercial collections may involve filing lawsuits, obtaining judgments, or placing liens on a debtor’s property. Each step in the process requires adherence to specific legal procedures and documentation to ensure enforceability and avoid violations.

Unlike consumer collections, commercial collectors are not bound by the Fair Debt Collection Practices Act (FDCPA), but that doesn’t mean anything goes. Ethical practices and adherence to state laws remain crucial to maintaining a solid professional reputation and avoiding countersuits.

Learn more in our latest article.

You don’t have to navigate commercial debt collection alone!

Legal issues are an unavoidable aspect of commercial debt collection, but with the right knowledge and strategic approach, businesses can recover more—and do it legally and ethically. 

If your business is facing unpaid debts and you're unsure about your legal options, our team is here to help. Call (248) 370-8160 or submit a contact form to learn more about how we can support your commercial collection efforts!

How to Deal with Customer Push Back

What do you do when a customer who owes you money won’t pay?

Not all customers will comply immediately, and some may dispute the debt or outright refuse to pay. Here are strategies to handle pushback effectively:

• Stay Professional. Maintain a calm, professional, and empathetic tone to prevent further resistance.
• Listen Actively. Understanding the customer’s reasons for non-payment can help tailor an effective solution.
• Provide Documentation. Present invoices, contracts, and payment history to substantiate the claim.
• Offer Solutions. Propose alternative solutions such as payment plans to make it easier for the debtor to settle the amount owed.

Negotiation Tactics

When dealing with delinquent accounts, negotiation can be a powerful tool. Consider these tactics to maximize recovery:

• Offer Payment Plans. Breaking down the total amount into manageable installments can encourage payment.
• Propose Settlement Offers. If collecting the full debt seems unlikely, offering a reduced amount for immediate payment may be a viable solution.
• Set Firm Deadlines. Define clear deadlines for payment to create a sense of urgency and commitment.
• Leverage Incentives or Consequences. Offering discounts for prompt payment or warning of potential legal actions can motivate the debtor to act.

Read more in our latest article.

Take the Pressure Off with Commercial Debt Collection

When it’s time to call in a third-party collector, RSD has you covered. When you work with our commercial debt collection experts, you’ll get the money you’re owed within 90 days. To get started, call (248) 370-8160 or submit a contact form. If you’re ready to submit a claim, you can skip straight to our claim form.

Step-by-Step Guide to Debt Collection

Does the debt collection process feel daunting?

RSD is here to walk you through it!

The debt collection process typically follows a structured approach, progressing from friendly reminders to more formal actions:

• Initial Reminder. The process begins with a courteous reminder via phone, email, or letter shortly after a payment becomes overdue. The goal is to prompt the customer to pay without damaging the relationship.
• Follow-Up Communications. If the debtor does not respond, follow up with additional emails, calls, and letters, emphasizing the urgency of resolving the outstanding balance. At this stage, reinforcing the importance of payment deadlines can be effective.
• Final Notice. A more formal notification is sent, warning the debtor of potential consequences such as late fees, interest accrual, or escalation to external collection agencies.
• Formal Collections. If the debt remains unpaid, you may need to escalate the matter through legal demand letters, debt collection agencies, or litigation as a last resort.

Read more in our latest article.

Take the Pressure Off with Commercial Debt Collection

When it’s time to call in a third-party collector, RSD has you covered. When you work with our commercial debt collection experts, you’ll get the money you’re owed within 90 days. To get started, call (248) 370-8160 or submit a contact form. If you’re ready to submit a claim, you can skip straight to our claim form.

Client Relationships and Credit Limit Adjustments

How can a positive client relationship prevent B2B debt issues?

A client with a strong relationship is less likely to have payment issues. A positive relationship will make the client want to fulfill their end of the deal, and will make collaboration is much easier if problems arise. 

Strategies to foster strong relationships include:

• Regular Communication: Maintaining open lines of communication with clients.
• Personalized Payment Plans: Offering flexible payment solutions for clients experiencing temporary financial difficulties.
• Early Intervention: Addressing minor payment delays promptly.
• Understanding Client Business Cycles: Being aware of industry trends and seasonal fluctuations.

When and How to Adjust Credit Limits

As clients' financial circumstances evolve, businesses may need to adjust their credit terms. Here’s how to approach credit limit adjustments:

• Regular Credit Reviews: Conduct periodic reviews of client creditworthiness.
• Tightening Credit Terms: If a client's payment behavior raises concerns, consider reducing their credit limit or requiring shorter payment terms.
• Requesting Additional Guarantees: For high-risk clients, request collateral or personal guarantees.
• Offering Early Payment Incentives: Encouraging prompt payments through discounts or incentives.

Read more in our latest article.

Need Help from a Debt Collection Agency?

Even if you do everything right, sometimes you’ll still run into a business that doesn’t hold up their end of the deal. If you need help with B2B debt, a debt collection agency can take the burden off your hands. Call (248) 370-8160 or submit a contact form. To go straight to placing a claim, fill out our claim form.

Monitoring Red Flags

Is it possible to avoid a B2B debt scenario before it starts?

In the world of B2B transactions, maintaining a healthy cash flow is critical. Recognizing early warning signs of financial distress in your clients can help you take proactive measures to lower risk before it escalates into a debt collection scenario. Here are the key areas to monitor:

Red Flags in Customer Payment Behavior

One of the earliest indicators of potential financial trouble is a change in a client's payment behavior. Be on the lookout for these warning signs:

• Missed or Late Payments: A previously prompt payer suddenly making late payments or skipping payments.
• Requests for Payment Extensions: Frequent requests to extend payment deadlines.
• Partial Payments: Clients making only partial payments rather than paying invoices.
• Changes in Payment Methods: A shift from regular electronic payments to checks or wire transfers.
• Disputed Invoices: An increase in invoice disputes, particularly over minor details.

Internal Monitoring Systems

To catch these red flags early, businesses should have thorough internal monitoring systems in place. Effective strategies include:

• Accounts Receivable Aging Reports: Regularly reviewing aging reports.
• Automated Alerts: Setting up alerts for overdue invoices or changes in payment behavior.
• Credit Risk Analysis: Implementing tools to assess customer creditworthiness and track changes over time.
• Customer Segmentation: Classifying clients based on payment history, industry, and risk level.

Read more in our latest article.

Need Help from a Debt Collection Agency?

Even if you do everything right, sometimes you’ll still run into a business that doesn’t hold up their end of the deal. If you need help with B2B debt, a debt collection agency can take the burden off your hands. Call (248) 370-8160 or submit a contact form. To go straight to placing a claim, fill out our claim form.