Overview Of Debt Collection Software

Companies are facing many issues with respect to debt and debt collection in recent times. Consumers, who are unable to pay for merchandise or services, often opt for some form of debt. This puts the onus on the businesses to collect the debts from the customers. As the economic crisis in the world continues, businesses have been facing many issues in collecting debt from customers. Collecting debts is not an easy task as it involves money and personnel. There is an alternative to the manual debt collection done by businesses. The alternative is the use of debt collection software, which simplifies the debt collection process. This software helps businesses or individuals to monitor the debts that they have to receive and will help to make the process of debt collecting a lot more uncomplicated.

Debt Collection Software

Debt Collection software is a computer program that businesses like law firms, debt collection agencies and other debt collection services use to streamline their process of debt collection. It also helps these businesses in maintaining proper documentation of the entire debt collection process. Debt collection software is not software that will collect debts for you. It is merely a software that will assist you to manage the debt collection process. Debt collection software will help debt collectors keep a track of the client accounts and other relevant information regarding the clients. There are different types of collection software available in the market and each of them will have some unique characteristics. It is therefore important to examine the characteristics of the software available in the market and select one that has features that will be beneficial to you.

Features in debt collection software

Collection software varies from one company to the other. However, there are a few features that can be seen in almost all debt collection software and they are

Client information: This feature allows businesses to create and manage client contact and personal information, which one can retrieve easily with the click of a button.

Document imaging: Using this option, debt collection agencies or businesses can scan and store important documents related to the customer and debt. These scanned documents will be easy to share and to retrieve when required.

Productivity tracking: This is an important feature found in collection software. This feature will provide data on the operation of a particular collection agency or an individual.

Interactive call systems: This popular feature is available in all debt collection software. This feature gives the user the option to contact the client over the phone by just clicking on a button. This feature can help save a lot of time and in some software, the option of recording the conversation is available.

Statement generation: By using this feature, the user will be able to generate statements for each of the clients.

Coupon generation: Coupons or reminders can be generated to let the client know that the payment due date is approaching.

Connectivity to credit agencies: Debt collection software generally has connectivity to the credit agencies. This feature sends information to the credit agencies regarding nonpayment of dues by a customer. This information can be used to alter the credit rating of the customer if the customer appropriately.

Matthew Anton is a financial analyst who has been studying the reasons for increase in debts and ways in which companies can improve debt collections using merchant account payment.

Posted in: General

How to Borrow Money to Invest

Borrowing money for any type of investment can be risky business, especially if your potential investment idea has an unproven track record.

Building long-term wealth is an essential part of any financial plan, and with current interest rates at near 40 year lows, borrowing money to invest may be a wise choice, if you are aware of the risks involved and any consequences that you may face should your investment go south.

The Basics of Borrowing Money for Investment Purposes

The first thing that potential borrowers must realize is that every loss or gain associated with borrowed funds is magnified, especially if the borrowed funds make up the majority of your investments.

If your original investment equity was $10,000 and you borrowed an additional $40,000 for a total of $50,000 in an investment fund, the gains or losses will be based on your original equity. Instead of a 10 percent gain or loss, $5,000 would be considered a 50 percent gain or loss on your original funds.

Margin stock accounts are the most common borrowing-to-invest opportunities. Margin stock accounts involve purchasing stocks with a combination of your own capital and borrowed funds from your investment firm. These accounts are great for individuals looking to increase their long-term financial portfolio because they are allowed to purchase a large amount of stocks with smaller amounts of money.

If you plan to open a margin stock account, you must be aware of what the market is doing at all times. Brokerage firms are allowed to sell off your securities if the market takes a turn for the worse.

What You Need to Open a Margin Stock Account

Opening a margin stock account may be difficult for some potential borrowers.

First, your broker will likely require you to front additional money when you open the account or will be asked to cover any financial losses when the market declines. Because the brokerage firm will be loaning you money to use for your investment, they will likely ask to do a credit check before you open your account. A poor credit history may be cause for your application to be declined.

Once you have been approved for a new margin stock account, read the agreement very carefully. Understand how much you can borrow, the minimum margin amounts and how much capital you need to maintain the account.

Posted in: Investing

Credit Score: How to Improve it

A good credit rating is very important for you because it helps you to get loans and other credit cards with a low rate of interest. Without a good credit score, you will have to resort to going to payday lenders to get payday loans. Given below are some methods to help increase your own credit rating.

Firstly, know your present credit score. You can get it online from sites such as TransUnion or Equifax, where you have to pay a small amount for the information. However, you can also compute your rating yourself and this facility is free of charge. Read your credit score report carefully and search for mistakes, if any. Mistakes in this report is not at all uncommon and when you get any in your own report, approach the authorities and get those corrected.

If you possess many credit cards, start by paying off completely the card with the least balance amount. In this way, the number of debts reduces and you get encouraged to clear off the balance debts gradually. Reduce your unnecessary expenditures drastically. Get rid of all the cards where you have completed your payment and keep only one card for emergency cases.

Do not apply for fresh credit cards immediately. Low credit scores entitle you to only the higher interest cards. Moreover, when you apply and get rejected, your credit score might drop even further. Always make the payments regularly because your payment patterns, known as “trade lines”, help keep your credit score as high as possible. Follow these methods and they will take your credit score within the acceptable credit range.

Posted in: Loans, Saving Money