Thanks to the ripple effect of the subprime mortgage crisis, today’s consumers are feeling a financial pinch like never before. Job losses abound, credit is tight, gas prices have topped $4 a gallon, food staples are priced like luxuries items – and many customers who’ve never before been late paying their bills are falling behind.

Those late and unmade payments, of course, put a crimp in business cash flow, and force companies to find a cost-effective way to increase revenues. As a result, many of them have discovered the benefits of virtual collections. Even those that may have previously shied away from full-scale debt collections, because of the cost and potential legal issues, are jumping on the bandwagon and quickly recouping their investments.

These highly customizable electronic collection solutions offer multiple payment channels (checks, PayPal, credit and debit cards) and contact methods (landlines, cell phones, e-mails, and text messages – as well as targeted combinations of these communications pathways).  

Some solutions provide debt settlement features, while others allow users to implement business rules that determine payment options. Nearly all provide some degree of reporting and analytics that can improve contact accuracy and increase settlement ratios. Top-of-the-line programs feature real-time credit reporting and best practice advice. With the wide array of prices and features available, there’s literally something for everyone. It’s a great way to get the income boost needed to ride out a tough economy.

Last 5 posts by tharlan

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