Archive | November, 2017

First-Party vs. Third-Party Accounts Receivable

30 Nov

You know that understanding the details of how your accounts receivable department works is vital to the long-term success of your business. Without diligent attention, it can become one of the biggest financial headaches within your company.

Accounts receivable can be handled in one of two ways: first-party and third-party management. This may seem self-explanatory; first-party means your company manages AR in-house, while third-party means you’ve outsourced to an outside company. This is true on the surface, but there is a secondary way to look at the issue. First-party accounts receivable management can also mean that a separate company handles your AR.

To understand how this is possible, it’s important to look at the process of collecting on outstanding accounts, and at which stage first- and third-party management are best utilized.


Identifying Which Collection Strategy Is Best For You

In the business world, it is inevitable that some of your customers will fail to settle their account in a timely manner. Some may need a gentle reminder or two, while others may need to implement a repayment plan to meet their obligation. Others will simply not pay at all. You know that the longer your company goes without recouping those funds, the harder it is for your cash flow to remain healthy.

If your company is looking for a streamlined approach to collecting on overdue accounts, you can enlist the help of an outside company to handle both first-party and third-party management.


Early Stages – First-Party Management

When the account is only slightly overdue, first-party management is recommended. This is when all communication with the customer appears to come directly from your company, even if a separate company is handling it. First-party management is about trying to cure an account or prevent a loss, so early intervention is crucial. The treatment of accounts worked first-party and in a pre-charge off situation, is often the same.

At TSI, our goal is to become an extension of your back-end operations, streamlining the first-party collection process for you. Your branding and communication guidelines are strictly followed. Reminder letters and calls are common during this stage. We strive to maintain a relationship with the customer and help everybody reach a workable solution.


Later Stages – Third-Party Management

The decision to move to third-party management is usually due to the failure of a customer to respond to earlier messages. People commonly refer to this stage as ‘being in collections;’ communications are now coming directly from a separate company. The third-party is still acting on behalf of your business. Post-charge off work would also fall under this stage.

With third-party management, other tactics can now be used to locate the customer and bring the account up-to-date, aiming to instill a sense of urgency in the debtor. Third-party management is often more regulated than first-party and is always covered under the FDCPA (Fair Debt Collection Practices Act).

Ultimately, third-party management is about liquidating the total balance written off, and TSI can help. Our diplomatic process is designed to maintain a positive relationship with the customer while encouraging them to settle their account quickly. We utilize our proprietary data analytics platform and collection tactics including skip tracing, credit bureau reporting, and bankruptcy monitoring to increase your liquidity rates and develop more accurate revenue forecasting.

But the real value of our operations is in our people. You can rely on our seasoned collection experts to work diligently on your behalf, backed by extensive training and support.


Reach Your Goals With A Trusted Partner

Working together with a partner from the early stages can benefit both you and your customers. It allows the partner to become familiar with an account in receivables right from the beginning, so they can better judge if and when to move an account from first-party to third-party status.

It also relieves the burden from your in-house staff of having to chase down overdue accounts. Your team can focus on other areas of the company to keep operations running smoothly, knowing that a trusted partner is acting on your behalf to bring your accounts receivables up to date.

Finally, you can develop a customized approach to give your customers an integrated experience, which could result in a higher percentage of accounts being settled during the early stages.

TSI is committed to providing personalized services to your customers, maintaining and enhancing relationships while helping you recoup lost revenue. Our integrated collections platform combines best-in-class technologies with data-driven workflows to facilitate effective and compliant operations for our clients. Contact me today to explore your options.

Source: TSI

Cyber Security and Debt Collection

20 Nov

Did you know that employees account for 43 percent of data loss, whether intentional or accidental? The remaining data breaches occur because of criminal infiltration. Regardless of the threat, our research shows that data loss and security breaches cost companies an average of $4 million in 2016, during which more than four billion pieces of confidential data were exposed.

Unfortunately, failing to create an effective cyber security system for your data collection efforts could put your customers and your company at risk.

Risks Associated With Cyber Security and Debt Collection

Data is easier to steal than you think.

Debt collection records are particularly sensitive because they contain significant financial information. The sensitivity elevates if you’re in the healthcare industry because your data might include personal health information (PHI).

Since you must report data breaches, your company’s reputation can take a serious hit if your customers’ data becomes compromised. Additionally, you could face serious consequences with regard to your cash flow, accounts receivable management, and stakeholders.

A data breach involving debt collection records could result in a serious fine from a regulatory body. Back in 2012, for instance, an auto dealership and a debt collector had to reach a settlement with the Federal Trade Commission (FTC) over data breaches that took place because of peer-to-peer file sharing.

Unfortunately, data breaches are on the rise. Our research reveals that 2016 saw nearly 40 percent more data breaches than 2015, and 94 of those breaches exposed at least a million confidential records each. Consumers value their privacy. In 2016, more than 15 million American consumers suffered from some sort of identity theft.

Cyber Security Solutions for Debt Collection

Getting best-in-class security for your data can help prevent breaches and other cyber security issues.

Many businesses don’t have the infrastructure necessary to meet HIPAA, NIST, FISMA, and PCI-DSS guidelines. That’s why working with a well-equipped collection agency can become a major asset.

Established collection agencies that secure their data against breaches can help protect your company from lawsuits, fines, reputation hits, and other consequences of a data breach. When you’re looking for a collection agency to handle your accounts receivable, make sure the candidate you choose follows these guidelines:

  • Data protection for data while it’s at rest, in processing, and in transit
  • Secure data center with 100 percent uptime
  • Redundancies in place to preserve data
  • Employees who are experts in specific data security areas, such as HIPAA, depending on your industry

Furthermore, you want to work with a debt collection agency that views security as a priority. As hackers and other criminals find new ways to skim data from victims, debt collectors must keep up with those attempts and find new ways to prevent intrusion.

You also want to make sure that your data is physically safe. Data centers should be equipped to prevent physical intrusion, fire and flood damage, and other catastrophes.

At TSI, our service portfolio is compliant with NIST, FISMA, PCI-DSS, and HIPAA. We employ security specialists with years of experience and expertise in protecting data against loss and corruption. If you’re looking for a debt collection agency to not only promote healthy cash flow and collect outstanding payments but also to preserve your data, we’re here for you. Contact me now to start optimizing your revenue.


Save Money and Go Green, Without Spending a Dime

13 Nov

If you own a commercial building, or are responsible for the lighting bill for a commercial property that you lease, there is a quick, certain way for you to save money, build cash flow, reduce lighting bills by up to 60% and be more environmentally responsible without having to spend a dime out-of-pocket.  It is the “no-brainer” of the century!

The transition to low-cost, highly efficient, LED lighting is catching on like wildfire.  Some have avoided the discussion because of the high initial cost of retrofitting a building or office with this clean energy technology.  Now, there is no reason to wait, because we can now provide “Lighting As A Service” (LaaS) that requires NO money out of pocket to accomplish.

Your entire building can be retro-fitted with state of the art LED lighting, which will also be installed and maintained, for a share of the cost savings in electricity over the life of the contract.  You can simply enjoy the additional cash flow and bottom line energy savings.  At the end of the contract, you can either have the lighting updated to the newest most efficient lighting, extending the LaaS agreement, or you walk away as the proud owner of a fully energy-efficient lighting system for your building.

  • No money out of pocket
  • Huge energy savings
  • No maintenance costs
  • Complete turn-key solution
  • Immediate cash flow and profits from the very first month

The move to energy efficient, inexpensive, LED lighting is underway.  LED’s are available in every style, brightness, and color temperature.  It can be made to look anywhere from soft candlelight to bright flood and spot lights.

One client, a large hospital system, received a $1.8 million dollar retrofit with no money out of pocket and was able to retain 40% of their energy savings, or $2.2 million over 5 years.  At the end of the 5 year contract, they will retain 100% of the energy savings.  The project reduced 60% of their energy use from previous fluorescent and incandescent lights.  These savings also didn’t include reduced maintenance costs as well as HVAC energy cost from lowered room temperature due to less heat dissipation from LED lights.

No matter the size of your business or your building, you can benefit in similar ways by taking advantage of this new way to boost your cash flow.   Contact me to see how much additional cash flow you can expect.

Finding Debt Assistance

6 Nov

TSI | Date :- November 3, 2017

There are times when even the most conscientious consumer may find they need debt assistance. The first thing to understand is that there is no shame in this. Occasionally, people need help finding out what their options are and how to best go about handling any issues that might have cropped up. The world is uncertain, so it is good to know that there are people out there that can help you get back on track.


Types of Debt Assistance

It is important to keep in mind that not all debt assistance may be the same. Typically, there are a number of different types of agencies that you may find yourself going to, each may have their own approaches to the way that debt can be made more manageable. Here are just a few of the options you have when looking for ways to repay a debt.

Credit Counseling –This system is usually focused entirely on the debtor, helping them develop budgets, pointing them at educational materials and workshops, and generally guiding people toward making the life changes that they may need to in order to meet their obligations. Usually, after an initial session, there may be the need for follow up sessions to help you keep on track.

Debt Consolidation – Debt consolidation involves taking out a loan to pay off smaller loans or debts. Sometimes this takes the form of balance transfers onto a new credit card with a 0% or lower APR. Another version of debt consolidation would be to take out a home equity line of credit and use that loan to pay off your others. Debt consolidation can help consumers roll multiple payments into one, typically at a lower interest rate or for a lower monthly payment making their debt a little more manageable.

Working directly with the collection agency or companies you owe – A number of agencies like TSI (Transworld Systems Inc.), are there to provide assistance for people that do not know who they should talk to about setting up payments, paying off a debt that is owed, or requesting information about their debt. This may be a good way to start looking for solutions when faced with collection letters or calls. Most collection agencies are willing to work with you to find repayment options that work for you if you keep the lines of communication open.


Getting the Right Counselors

No matter what option you choose when looking for debt assistance, make sure to ask lots of questions.  At TSI, our representatives are trained to provide knowledgeable consumer assistance and want to help in any way we can.

We understand that debt can be crushing for anybody and may cause incredible amounts of stress for a person and their family. That is why it may be a good idea, if you are struggling with debt, to look at your options for debt assistance from TSI.

Contact me directly at 770-224-8504 or email me for more information

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