Flat Fee Collections
More information about Flat Fee Collections/p>
In the current small and medium-sized business environment, management decisions reflect attention to tighter margins and cost containment. Flat rate
E collections are a well-considered solution to remedy these issues.
Why don’t all businesses use flat rate collection systems?
Many fear they will end up paying more in fees than they would like. It is possible to find a collection agency that meets your specific business needs. Flat rate collections will breathe new life into your bottom line, treat customers with respect and diplomacy and is affordable.
Finding a collection agency that offers a flat-fee collection solution make it affordable for most businesses to seek help, even with a tight budget. A flat-fee collection program typically charges $10 to $15 per account, regardless of the dollar amount being collected. This is a strong contrast to the majority of traditional collection agencies who take a large percentage, usually around 3- percent, of an overdue account. Agencies with a flat-fee structure make it far more affordable for small businesses to hire third-party teams for assistance.
At Pan Am Collections our collection rate on flat fee accounts averages 30-40%. This is a stark contrast in cost. Regardless of account size, the fee for this high collection rate is $10-15, as opposed to the industry standard of 30-40% of the amount collected. This is a real savings for those debts less than 6 months old. It should be noted the age and collectability have an inverse financial impact. As accounts age, the ability of the business to collect diminishes.
Finding help from a reputable collection agency that is affordable is half the battle in recovering overdue accounts. Finding a debt recovery team that will work with internal collection staff can also help a small business save money through improved efficiencies and procedures. Flat fee collections may be a a workable and effective solution for your overdue accounts.
Look for a collections team who:
· Offers a flat-fee collection system
· Employs professionalism, ethics and standards
· Follows proven methods of success in their practices
· Educates staff and creates tailored solutions
· Believes in resolving debt, not just collecting debt.
A collection agency that is affordable with a flat-fee system and has integrity will help a business improve their accounts receivables and allow businesses to spend time chasing new business, not past due accounts. Working in concert with a strong collection team helps business owners and operators do more with less and retain a strong standing in the community as well as their industry.