If you’re reading this, you’re likely considering (or already a part of) the buy-here-pay-here industry. One of the biggest challenges in this line of business is balancing a professional debt collection policy with effective, sustainable, and cost-effective practices.
The idea of managing these often-precarious contracts and relationships brings to mind a quote from James Maynard Keynes: “If I owe you a pound, I have a problem; but if I owe you a million, the problem is yours.” A successful creditor embraces the burden of responsibility of collections, creating an environment that funnels their debtors toward optimal behaviors. Giving your customers control, convenience, constant communication, and choices are the keys to keeping your collections consistently cordial and keeping the count of catastrophic court cases and charge-offs controlled.
Imagine if you could hire the most efficient collections agent who works 24/7 and never takes a day off. 100% reliability and accountability, all at a fraction of the cost of traditional collection teams. How could that scale/grow your business? Would that change the way you did business altogether?
Having Deal Pack as your DMS provides, amongst other things, industry-leading collection software that is revolutionizing the way buy-here-pay-here dealers operate. Here are 4 ways Deal Pack is helping BHPH dealers cut costs and collect more:
- Automated text messages and/or emails based on days past due (even friendly reminders 1-5 days before the due date, for example). These texts can even give your customers the option to pay-by-text with their credit card. You can also set up dozens of text and email templates that can include a link to your website for payment, which can then be manually sent to one customer or an entire queue of customers. Online payments can then be automatically or manually imported into your DMS.
- Recurring payments using credit card or bank routing and account number (set it and forget it).
- Pre-recorded voice messages can be sent to a single customer or entire groups of customers. This can be a friendly reminder and include an option to “Press 1 to make a payment.”
- PayNearMe and MoneyGram integrations, which allows your customers to make payments at Wal-Mart, 7-11 and other gas stations, CVS, Walgreens, grocery stores, and more.
After this increased efficiency in collections sets you well ahead of the curve, what if you decide to start buying loans from other dealers? With Deal Pack, you can import entire portfolios or just a certain number of payments (i.e., 8 payments as a trial run). You can even service loans without buying them outright and collect payments on behalf of other dealers. When you’re able to be this efficient and streamlined, it’s more cost effective for other businesses to pay you to do it for them rather than doing it themselves.
Even in the rare event you are unable to collect payments on your contracts with all these tools at your disposal, fear not. Deal Pack has GPS integrations which allow you to proficiently retrieve the collateral, recoup your investment, and inexpensively terminate the contract.
Are you ready to reliably collect what’s owed to you? Call to schedule a demonstration today.