The new year always brings changes to the business world.
And, this year, 2016, the biggest changes are expected to hit commercial credit and collections agencies, as well as others in similar industries. In fact, the
International Association of Commercial Collectors is predicting big regulatory
changes to take effect this year.
One of the changes they’re predicting isn’t really a change
as much as it is in an increase. Credit has been tight and difficult to get
since the recession, and it’s expected to get even more tight in the new year.
As a result, creditors are expected to be more frugal with their own money in
2016 since they’re less likely to have as many new accounts coming in.
In fact, in general, economic growth is expected to either
stay where it’s at or decline this year. That may sound like there’s not a lot
of hope, but that’s not the case. This is simply a year of change, a year of
elections and threats of war and terrorism. Thus, businesses that can stay
strong and make wise choices during this time can definitely make it through to
a time where things are more settled.
If you’re curious as to why years like these bring about so
much change, it’s simple really. People sense when there’s a kind of
instability in their worlds and they tend to naturally save more and spend less
during uncertain times. Threats of terrorism and war also breed a culture of
fear, a culture in which people travel less, both for business and pleasure,
leading to a decline in business, but especially international business. It’s
really just a rocky, cautious time for consumers and businesses alike, and all
businesses can do is ride it out.
Credit collection agencies and commercial credit agencies
will do well to, as mentioned, be more selective about who they extend credit
to, be more fierce about collections efforts, and charge higher rates for their
services. Agencies that are not currently affiliated with a professional
association that maintains high standards for its agencies would do well to get
affiliated since having a good reputation and association can help business
even in difficult times.
Other changes that are expected for these industries in the
year 2016 include:
l A
reduced number of accounts in collections
l Higher
liquidation rates for collection agencies
l Creditors
will be more devoted to credentialed agencies
l An
increase in placements from clients
l An
increase in collections outsourcing
l Reduced
use of offshore collection agencies
Obviously, it’s a year and time of change for people in
these industries. For your business’s best interest, just be willing to adapt
your business strategies to fit the world around you. The more willing you are
to change and grow to reflect the current times, the more likely it is that you
will successfully make it through them.
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