In this article you will learn how doing this one simple action can help you grow your credit repair business exponentially.
What is at issue here is your business is so good that you are being overwhelmed with files that you can’t keep up with and clients may be getting frustrated which leads to your frustration.
You might think that hiring additional staff will help eliminate the back log and remove the stress and frustration. However, I will dispel this as you read through this article.
Hiring a staff to process your influx of credit repair files can be expensive and time consuming.
You will be adding to your payroll whenever it is a salaried position or hourly. This will add significant cost to your business. At $15 per hour that is an additional $31,200, not to mention the additional business taxes you will have to pay. This can take months and years to show a positive ROI.
In addition to the taxes, there may be medical benefits to be added to your expense line. The average cost of a basic employee package is $18.80 per hour. So a $15 an hour employee can become a $30 per hour+ employee.
Bureau of Labor Statistics December 2018
This may or may not be part of your employee package, but important to note, none the less.
Training. You will need to consider how much time you will have to spend training your new hire. How much hand holding until they are able to fly solo a process the credit disputes on their own? This will take important time away from your responsibilities, especially if you are a small credit repair company.
As fickle as people are in this day and age about employment, what happen after your new hire is trained and they decide one day that credit repair is “not their thing”? If you are fortunate they will give a two week notice but it is not beyond the scope of imagination that they simply don’t show up to work one day.
You have spent hours of your time and money to train someone that has moved on, then the process starts all over.
Among the major occupations, workers in management, professional, and related occupations had the highest median tenure (5.0 years) in January 2018. Within this group, employees with jobs in management occupations (6.4 years), in architecture and engineering occupations (5.7 years), in legal occupations (5.1 years), and in education, training, and library occupations (5.1 years) had the longest tenure. Workers in service occupations, who are generally younger than persons employed in management, professional, and related occupations, had the lowest median tenure (2.9 years). Among employees working in service occupations, food service workers had the lowest median tenure, at 1.9 years. Bureau of Labor Statistics 9/20/18
There are a couple things you can do to protect yourself from higher business costs and employee turnover in your credit repair business.
Continue to operate the way you have been operating.
But we know that this is like climbing a mud covered hill on a rainy day.
Outsource Your Dispute Process
The benefits of outsourcing are numerous.
Consider all the added expense to your business when hiring an employee, dispute outsourcing is a fraction of that cost.
Plus, outsourcing will allow you more time to work on your credit repair business instead of working in your credit repair business. When you get comfortable with your new dispute outsourcing association you will likely find that your level of frustration will decrease dramatically. No more sense of overwhelm and panic.
But you do have to be careful who choose to partner with to process your credit dispute letters.
Most credit outsourcing providers have a one size fits all solution. You can find yourself paying for services that you don’t need or want. This can be frustrating.
You may buy into a white label program thinking that your dispute letters will be processed for you,. Typically they are a platform where templates and a white label back office is provided for you, but you still have to do the work.
Your best solution is to find a credit repair outsourcing company that:
1. Writes and process the dispute letter for you
2. Provides varying levels of support so you pay for only what you need
3. Has a proven track record of success and satisfied credit repair companies, and more importantly that the clients of the credit repair companies are satisfied.
You can spend countless hours looking at all the credit repair outsourcing companies, signing up, logging in, taking time to try and learn the back office interface or you can contact The Dispute Center.
The Dispute Center has been providing credit repair companies with outstanding dispute process for over a decade. They actually write and process the dispute letters, offer multiple options and levels of support and dispute processing and have a long list of satisfied clients.
If you are tired of the frustration and overwhelm of processing credit dispute letters and all the other process that go with it, can’t afford to hire additional staff, contact The Dispute Center or call (616) 541-2322.
We follow a comprehensive 3-Pronged Strategy to help our mutual clients reach their credit goals. Our philosophy has helped thousands of clients reach their credit goals and obtain the financing and credit they were seeking. It is vital that the client participates, it allows us to complete their program faster, and helps us to maximize their results and credit scores.
- Client communicates consistently.
- Client forwards responses received in a timely manner. We achieve better results and complete the program faster if the client forwards the responses they receive. The responses provide vital information for us to formulate our custom responses and it provides vital status updates, such as a deletion/correction notices from a reporting company.
- Client stays the course and avoids any additional new derogatory actions, such as, new late payments, new collection accounts, increasing balances with open credit cards, or submits numerous new credit applications.
- Client has funds available or access to funds to pay/settle any accounts that are deemed verified or validated, and a balance is owed.
- Client adds positive credit, if necessary, and when appropriate, to boost their credit score beyond any increase already achieved.
Step 1: We verify the accuracy of the accounts the client believes are inaccurate and want the accounts to be verified or validated. We verify and validate the accounts with the credit bureaus and the companies that report the accounts. This will delete or correct the accounts found to be inaccurate and erroneous.
Step 2: Any derogatory accounts that remain and carry a balance should be paid or settled to better the client’s credit standing. We will provide guidance and coaching to help the client negotiate a reduced pay-off. Once that account is paid, we ensure the account is reporting accurately.
It is important the client properly pay/settle an account to protect themselves against future collection activity and to ensure the account is reported properly once it has been paid. In addition to other concerns, it is vital that the client obtain written agreement of the terms and payment amount before any payment is made. We will also provide guidance for a pay for delete agreement, but those arrangements are not always available.
Step 3: We recommend credit building strategies and accounts to help increase the client’s credit score. In most cases this is needed due to the lack of positive credit. Removal of negative credit can cause a credit score decrease if there is not sufficient positive credit to replace it. Keep in mind, there is a proper time for the client to add positive credit. If the client has open derogatory accounts with a balance owed, we strongly recommend the client resolve these accounts prior to adding new positive credit; the addition of positive credit can increase the collection and/or legal activity.
When the client’s program is complete, their credit file and credit scores will be in their absolute best possible status; provided, they have not contributed to any new or additional derogatory reporting.
Call today to find out more info and pricing. Don’t forget to ask about our business credit building and business funding outsourcing.
Prematurely establishing new credit or attempting to obtain multiple positive accounts at once can be detrimental. It can potentially increase previously agreed upon collections and/or result in legal activity against your client. It is important to personally communicate this to every client.
Once these steps are completed successfully, your client’s credit should be in much better shape than it was previously. We continue to guide your client with successful credit strategies and encourage them to maintain their positive reporting efforts. If the client is able to keep payments current and utilization rates low, they will be on their way to credit success.
The best part is of all of this time-proven strategy is that through all of these steps, we do the heavy lifting for you. By outsourcing the bulk of these time- and cost-heavy aspects of your business, you get extra time to focus on community outreach and customer acquisition. We’ll handle the rest. We pride ourselves in transparency, so every step we take is available for your review in our excellent back office portal.
We always help you help them in establishing new credit. Contact us now to experience The Dispute Center difference that will allow you to stand leagues above your competition. Give us a call at (616) 541-2322.
Many business owners struggle with personal credit and business credit issues and need help to obtain business funding at a lower cost and without the need for a personal guarantee. To satisfy this need, The Dispute Center has teamed up with one of the premier alternative-to-bank business funding companies in the nation to provide an outsourcing service for building business credit and credit correction. Fimerica is a highly respected and experienced business lender that offers business term loans, business credit lines, business debt consolidation loans, and a variety of other financing products.
Building Business Credit the Correct Way
In order to position a business owner to receive the maximum amount of business funding for the best rate and terms, it is very important that the business owner’s personal credit is in good standing; in most cases, a personal guarantee will be required until the business has established strong and seasoned business credit. Depending on the goals of the business owner, they may choose to utilize the personal credit repair program prior to improving their business credit. Our goal is to move the business owner into a position that allows them to secure funding without the need for a personal guarantee as quickly and efficiently as possible.
Although the process of building or correcting business credit can be complicated, The Dispute Center strives to make it as easy as possible for both you and your clients. These are the basic steps we take to position the business with the best business credit possible. With time and proper management, the business’s credit will continue to flourish after the completion of the program.
Step 1: Checking Compliance:
This step includes the review of the business owner’s personal and business credit reports and business entity setup filing to evaluate their credit, ensure the business entity is legally and correctly set up to establish legal business credit, and determine the best strategy to build or repair their credit profiles.
Step 2: Establishing Business Credit Profiles:
During this phase, it is determined if the business has existing business credit profiles, and business credit profiles become established through D&B, Experian Business Profile, and Equifax Business Credit Profile.
Step 3: Establishing Trade Accounts:
If the business has no business credit accounts reporting, we assist in establishing trade vendor accounts starting with Net 30 merchant trade accounts, and we continue to establish further accounts after the completion of this phase.
Step 4: Business Credit Profile Confirmation:
Most businesses will begin receiving “pre-approved offers” around this time. We monitor reports to confirm that credit files are active and accounts are reporting through all major business credit bureaus that were established in step two.
Step 5: Establishment of Revolving Trade Accounts:
After merchant trade accounts are established, the business credit profile becomes well-rounded through the opening of revolving trade accounts. These accounts lay the groundwork for traditional, bank-type business credit.
Step 6: Opening Business Tax-ID Credit Card:
After a period of time in which the vendor and revolving trade accounts have positive reporting and payment history, we help the business owner apply and receive their first unsecured credit card based on the business’s tax ID instead of their personal social security number.
The full program is typically completed within 6-12 months depending on your client’s cooperation. Following these steps, you will have successfully helped the business lay the foundation for a future building business credit and funding opportunities.
It is essential that you guide every client toward good credit practices in order to maintain these positive results. Although the process can be complicated, our training and support staff are available to assist you and your client through every step.
Contact us today to find out more info.
Don’t forget to ask about our business credit building and funding services