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By Fidelity National Credit Services, Ltd.

FNCS has a dedicated Rent to Own (RTO) and Payday Advance (PDA) recovery operation. Contact Dan Jobrack, National Director of Business Development at (209) 957-8361 or 1-800-648-9341.

Every business experiences loss. Your local hamburger stands over cook their big sellers at lunch or dinner to allow you to get in and out faster. What they don’t sell is their waste or loss. In the RTO business we call it acceptable or measured risk. In-house a retailer executes every avenue to a) recover merchandise and b) collect back rent when an agreement goes sour.

“Unfortunately these efforts are not always successful” states Dan Jobrack with FNCS. What is the next step before you give up all hope at recovery or find yourself pursuing a small claims court effort that every well may yield the same result, even if you do find the delinquent customer?

The answer is 3rd party collection with an agency that offers industry specialization. Many owners and company director’s stand with unsure footing when considering the use of a 3rd party option. In a recent national study it was found that the debt collection industry is an essential element to our economy as well you, the retailer who has been slighted by a dishonored agreement (ACA International, 2006).

ACA CEO Gary Rippentrop states “Debt collection reduces the risk of loss for business, permits greater business expansion; makes it possible for healthcare providers to maintain access to care in their communities and allows for the privilege and convenience of credit as a positive financial tool for American consumers.” Rippentrop adds “Business large and small rely on ACA member agencies not only to collect unpaid bills, but also to help keep their prices lower for all consumers.”

Jobrack echo’s Rippentrop’s comments regarding lower prices. “A major factor in keeping prices down at the retail level, thus providing a retailer a competitive advantage is not solely the reduction of merchandise and agreement loss. The amount of payroll expended in knocking on doors to find a customer, the time spent by a store employee performing collections when their skill is service and business growth as well as the postage and supplies that accompany the collection process all have a negative impact on the bottom line!” This is why Jobrack points out that key to successful recover is to know when to call your agency!

“Timeliness is a major factor in the collection process” states Gene Sacco, Executive Director at FNCS. “The older an account the greater the difficulty in recovery.”

Here is a simple formula to determine if you should be using a 3rd party agency: are you spending more in mileage, payroll, supplies and effort than you are collecting? If so you need to follow this weeks FNCS collection tip and ‘Know when to call a 3rd party agency!’

To get questions answered or for more information contact Dan Jobrack, National Director, Business Development for FNCS at (209) 957-8361 or via email at djobrack@fidelitynationalcredit.com.