WHY WE'RE DIFFERENT...

Discover an Alternative that Will Yield Up to a 75 Percent Reduction in Delinquencies

Sweeping changes in the economy, increasingly more complex state and federal regulations, and deteriorating customer paying habits-these are all major contributors to an ever growing delinquency and write-off problem that burdens business organizations throughout the United States.

A large part of the problem is related to the manner in which business providers choose to handle delinquent accounts. Traditionally, as accounts age through the billing cycle, the internal staff members of many business organizations perform various collection techniques at 30 days past due to 180 days past due. At 180 days and beyond, businesses generally rely on professional, third-party intervention.

To alleviate excessive write-offs, internal efforts are concentrated on the 120- to 180-day accounts, leaving the 30-day accounts to become 60-day accounts, and the 60-day accounts to become 90-day accounts-creating a vicious delinquency cycle. As time passes, the cycle becomes more difficult to break.

Breaking the Delinquency Cycle
There is good news, however. You can break the delinquency cycle by considering the following information and taking action to change how your business handles delinquent accounts. Ask yourself-what if you could place all of your internal efforts on the 30- to 60-day slow-paying accounts this month? How many accounts do you think you could prevent from reaching the 90-day aging period next month?

After posing these questions to thousands of creditors over the years, we can tell you that the most frequent answer received indicates that this approach could reduce the number of accounts aging to the 90-day period by up to 75 percent.

Now consider this. As long as you are using a reputable agency with authority to go to court, and you are able to turn over 60- to 90-day-old accounts to your agency, what kind of results would they get? Again, we received a unanimous response from creditors. Most believed that an agency would get excellent results, and also, noted that those agencies that could not get results with accounts this early in cycle should not be in the collections business.

And finally, when questioned as to why they weren't using this type of preventive maintenance approach to manage receivables and to eliminate write-offs, most creditors cite that it is simply too expensive to use a conventional collection agency or an attorney on 60- to 90-day old accounts. The fees charged for these services often exceed the business organization's profit margin. Additionally, creditors indicate that resorting to such tactics usually alienates future business. So, what is the alternative if you want to break the cycle and gain better control over your business's cash flow?

Taking Control With a Cost-effective Resource
NCO Receivables Management Solutions offers a cost-effective solution to those who want to break the delinquency cycle. NCO Receivables Management Solutions Tandem Program enables businesses to:

• Utilize a full-service, professional agency early in the delinquency cycle-before age deteriorates the collectability of their accounts.
• Practice preventive maintenance (submit early referrals) for fees averaging 10 percent or less per account-regardless of the amount owed (a far cry from the 30 to 50 percent typically charged by conventional agencies). Business providers can afford to turn accounts over to NCO Receivables Management Solutions without giving away their profit margin.
• Place their internal efforts back on the 30- to 60- day slow pays (where they should be)-early in the delinquency cycle.
• Form a business partnership between the internal collection staff and NCO Receivables Management Solutions that will reduce and/or eliminate bad debt. Their internal staff members work the easy accounts-the 30- to 60-day delinquencies. Accounts beyond 60 days are referred to NCO Receivables Management Solutions to be worked with full third-party authority. This preventive maintenance approach provides the highest possible results and low fees.

NCO Receivables Management Solutions headquarters is located in Columbus, Ohio, and the business is supported by more than 20 collection processing centers throughout the United States.

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