Rent-to-own companies operate on unique enterprise models. Usually, customers will rent furniture or home appliances from furniture companies. However, many problems can arise due to unpaid rental installments. Due to the nature of the business, nearly every rent-to-own company puts itself at risk of dealing with clients’ unpaid bills. The industry handles this issue in several ways while following a set of special collections laws.
However, doing this on your own can be confusing and time-consuming. If you own a rental-purchase business, you should consider hiring a specialized debt recovery agency such as Southwest Recovery Services. Our professional debt collectors will know how to deal with late payments quickly and ethically.
Unpaid Furniture Rental Bills
Rent-to-own businesses expect customers to make payments based on the terms outlined in their contracts. By missing one or multiple payments, your clients can affect your bottom line. This can lead to big problems for your business. For example, it can result in excess outstanding debt, which could impact your everyday operating costs. It could also hinder your rental company’s long-term growth.
When dealing with this issue, rental purchase companies have some advantages over other businesses. Namely, the lease agreements enable them to own the furniture, appliances, or other goods until the rental contracts end. This offers additional protection. However, it doesn’t solve the problem of a customer holding your goods for months on end. It makes the value of those goods plummet. Also, it lowers their resale value. That’s why it’s not always ideal to have the client return the merchandise. Instead, the best outcome is to collect the debt that your client owes you. The easiest way to do that is through an experienced agency that handles furniture rental collections in Texas.
Furniture Rental Debt Collection Laws and Your Reputation
As mentioned, the rent-to-own industry has to operate according to specialized debt collection laws. Focus on what SWR can do for furniture companies, rather than what they can’t do. When working with our collection agency, we will help you leverage the rules effectively. We know how to use them to your advantage to achieve the best results.
Since the property involved in your Rent-to-own contract with a customer still belongs to your company, we can use several different methods to settle the debt. For example, we can pursue the case as theft if your client intended to steal or resell your property.
Furthermore, since our services follow the Fair Debt Collection Practices Act, we assure you that your debt will be settled without tarnishing your reputation. As we’ve said, rent-to-own companies who use aggressive and unconstitutional tactics to collect unpaid bills can face backlash. This could harm the reputation of your entire business and cause bigger issues.
Our debt recovery agents can help you collect outstanding balances by pursuing furniture debts vigorously. That way, we will help you to collect debts using all of our resources. Plus, we’ll insulate your rent-to-own store from negative reviews.
Southwest Recovery Services Can Help
If you have trouble with customers not paying their installments and you do not know how to pursue them, Southwest Recovery Services is here for you. We stand behind multiple years of training and experience and a line of more than satisfied clients. We will keep your operation running smoothly with our furniture rental debt collection services. Contact us today to learn more!