Historical Foundations Of Debt Collection

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Debt collection can be traced back to the history of debt itself. Financial exchanges have been defined by different aspects of human communities’ psychosocial and cultural development. It is interesting to take note of changes that happened since the invention of money and the implications of such a representation in the dynamics between parties. The possibility of inequality and discrepancy among the various capacities of individuals and families to respond to the demands of the market was very much a reality even during ancient times and after civilizations were established. Borrowing and lending money have been financial activities that became commonplace.

Debt collection agencies are relatively new and have been a part of the progression of institutionalizing and professionalizing that aspect of the financial world. Since the beginning of the civilized world, the relationship between debtors and creditors have been defined by society, putting in place several guidelines as to how they should conduct business. Punishment for non-payment of debts depended on social conventions. They included different alternatives to what was owed: from usual collaterals to slavery. In colonial America, debtors prison was the usual destination for those with not enough collateral. The conditions and punishments were harsh. Those were the methods used to ensure payment of loans.

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Before the modern history of debt collection, many lenders limited loaning to secure loans. The earlier reliance on physical punishments had proven to be insufficient and ineffective in the collection process. Not until the latter decades of the 20th century have collection agencies been a part of the whole industry.

For more than 30 years, Brennan & Clark LLC has been providing clients effective collection strategies focused on successful account recovery. It offers receivable support solutions that help clients eliminate credit losses. The firm has a management staff with more than three decades of experience in the industry, and the expertise to guarantee higher than average recovery rates in the industry. For more on debt collection, visit this blog.

More benefits of hiring a collection agency

Business owners often have a lot of work to manage and little time to devote to collecting payments and debts from customers. Sometimes the process of collecting can be troublesome, especially as the debt gets older. This is where a good collection agency comes in, relieving unnecessary stress and allowing managers to focus on the business. 

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For one, a good collection agency will offer legal protection. It knows that well-informed customers will not think twice and sue businesses if their rights have been violated, so they know the ins and outs of both federal collection laws and the laws that govern the state in which the agency holds a license. They will likewise prepare a comprehensive documentation that can be used as crucial evidence if the occasion for a legal recourse arises. 

Success in recovering debts is the forte of a collection agency, so ensure that you get one with a good track record and tons of experience. If you are focused on running your business, an agency’s primary job is to focus to collect debts. It will know the best techniques to legally make debtors to pay, including how non-payment can adversely affect a debtor’s credit score for up to seven years. 

Finally, a good collection agency will give you much flexibility, offering programs that fit with your business model and suit your business needs. Some of them will offer a flat or fixed fee, while others will require a commission for successfully recovered amounts. There are even those which offer net returns within a few days of a company turning over accounts for collection. This way, the collection agency absorbs the risks and the client gets the cash immediately. 

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Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. Its expertise helps companies achieve well-defined goals for their collection process, evaluate all internal procedures, implement improvements, and guarantee better results on collections. For more reads on debt collection, drop by this blog.