Here Are a Few Signs That You Need a Commercial Debt Collection Agency Urgently
Categorised in: Our Blog
Small businesses are the lifeblood of the United States economy. There are 28 million such businesses in the country, outnumbering larger corporations by over 1000 to 1. 70% of them are run by a single person. What’s more, small businesses employ nearly 60% of the nation’s workforce.
While many small businesses thrive, not every enterprise succeeds. Only half of these businesses survive over five years, while as many as 90% of new startups fail. Clearly, it takes hard work, skill, and shrewdness to prosper as a small business.
At Summit A*R, we’re a commercial debt collection agency with over 23 years of experience helping businesses recover revenue from other businesses. Your business may have regular costs such as rent, utilities, supplies, inventory, salaries, benefits, insurance, equipment, maintenance, taxes, shipping and more. Having a good cash position is important to your survival.
If your invoice hasn’t been paid, we understand why you may hesitate to use the services of a collection agency. Your business relationships have been developed carefully. While you want to collect your revenue you also have some concerns about using a collection agency.
Although some debt collectors may use shady tactics, they’re in the minority. Moreover, they’re quickly blacklisted by the Federal Trade Commission (FTC).
At Summit A*R, we bring humanity back to collections by following our “P.H.D. Philosophy” (Preserve Human Dignity). We use a diplomatic approach because we understand the value of business relationships.
Our goal is to recover your revenue while preserving your reputation and relationships. We understand that your current past-due account could be your best future client. We also realize that word travels. How you deal with a debtor may affect your ability to do business with other companies.
We’re affiliated with organizations such as the ACA International and the International Association of Commercial Collectors. Both associations promote values such as ethics and diplomacy in the collection industry. What’s more, we have an A+ rating from the Better Business Bureau (BBB). This score is given to businesses that maintain a level of excellence.
Don’t hesitate to reach out to Summit A*R for your commercial collection needs. Here are a few signs that you need our professional help urgently:
#1 You Have an Undesirable Accounts Receivable Turnover Ratio
The growth of many businesses is stunted because they have trouble collecting revenue. Such businesses divert valuable resources to their in-house collection department, which may not have the skill, experience, or time to recover debt consistently.
Your staff and resources should be used to improve your profitability and grow your enterprise. Don’t waste your assets. Instead, turn to a team of specialists like Summit A*R. We do this for a living and our services are cost-effective. Unlike other agencies, we don’t demand fees upfront and have no mandatory minimums. We will work with businesses of any size and with any number of accounts.
We’re also highly effective. Our success rate is double the national average. Unlike your in-house collection department, we can report a debtor to the big credit bureaus. Remember, businesses also have credit ratings. A business with a poor score will find it harder to continue their operations, especially when they need loans.
We also offer full-service litigation services after our other efforts have been completely exhausted. We conduct a cost-benefit analysis of taking legal action. If the chances of recovery are good, we approach you for written authorization before proceeding.
Use our receivables turnover ratio calculator to determine how quickly your invoices are turning into actual money. Your AR turnover is calculated by dividing your net credit sales with your average receivables. If your ratio is poor, then you could face a cash crunch soon.
#2 Your Customer Has Stopped Responding
Your client should still stay in touch even if they haven’t paid you yet. But if they’ve stopped responding to your phone calls, emails, and letters, then you should contact Summit A*R. Our team of professionals can advise you.
#3 Your Invoice Is Overdue by Months
If your customer has been ignoring your invoice for months, then get in touch with us quickly. Statistics show that debt grows harder to recover with time. Even if some time has passed, we may still be able to help. Over the years we’ve recovered some particularly difficult debts.
#4 Their Behavior Has Changed
Some companies may try to buy time with excuses. They may claim that they didn’t receive your emails or invoices. Alternatively, they may have a change in attitude. They may sound rude, nervous, or impatient on the phone. These are signs of stress in the workplace. Management can wilt under pressure when a company is facing financial problems.
#5 Your Debtor Has a High Employee Turnover Rate
While it’s normal for a company to have employee turnover – a particularly high staff turnover can be a red flag. Usually, employees begin leaving a company that’s experiencing monetary difficulties. If such a company owes you money, then give us a call.
#6 Your Customer Owes Other Businesses Money
If your invoices are past their due date and your customer owes other businesses money as well, then it’s advisable to act fast. This could be the sign of a company that’s drowning in debt. Summit A*R can negotiate a payment for you while there’s still time.
#7 They’ve Hit Borrowing Limits
Pay attention to news about your customer. If their company has reached its borrowing limits, then they may be in decline. Partner with us to collect your dues before they permanently end their operations.
#8 Their Stock is Falling
Investors follow the performance of a company keenly. If your debtor’s stock is falling dramatically, then it may indicate that they’re in serious trouble. Get in touch with Summit A*R to collect what you’re owed. Remember, they have other creditors. Recover your revenue before your debtor has nothing left.
These are a few signs that you need to urgently partner with a commercial debt collection agency like Summit A*R. We can be reached via phone or email. You can also request a callback through our website. Professional advice from our experienced collections team can help you collect what you’re owed.