We Are the Type of Debt Collection Agency a Small Business Needs
Categorised in: Our Blog
You remember that moment like it was yesterday. That moment when you realized that you don’t want to work for anyone else. Perhaps you were a student in high school, college, or university. Or maybe you were already employed at another company.
You loved what you did but you were tired of working every day of the week for someone else. You wanted flexibility, freedom, to be your own boss, and to develop meaningful relationships with other business leaders.
You knew it would be tough initially. After all, two-thirds of small businesses close within the first two years. But you also believed in yourself. Knowing that one-third of all businesses continue after ten years, you knew that the longer you survived, the greater your chances of thriving.
So, you got your financing in order. It was hard work, but you secured your loans. You also gained the love and support of people who depended on you. Pretty soon, your business was paying taxes, rent, utilities, suppliers, and salaries to a circle of small but loyal employees. You were now one of 30 million small businesses in the United States. Things were looking up.
And then, it happened.
A payment was late. And then another. And then another. Suddenly, your accounts receivable turnover ratio wasn’t looking healthy.
With over 23 years of experience in the debt collection industry, at Summit A*R we’ve seen it all. We know that you had done everything right. You had a good team, the latest accounting software, and had incentivized timely payments with early payment bonuses and late payment penalties. With your bills piling up you felt under pressure. Unlike a large business, your company didn’t have the resources to write off the debt.
But your letters, emails, and phone calls weren’t receiving the response you needed. As another deadline expired you were tempted to call the customer again, but you didn’t want to damage the relationship or hurt your reputation.
There are many reasons why we are the commercial collection agency small businesses trust with their debt collection needs. As a small business owner, we realize that you don’t have the time to chase delinquent customers. Your resources could be better spent on improving your profitability. Here are a few reasons why Summit A*R is a good ally for small businesses:
#1 We Only Get Paid When You Do
Many small business owners avoid partnering with a commercial credit services debt collection agency because they believe that they can’t afford to. Unlike other companies, we don’t make unreasonable demands. We don’t ask you to guarantee us a certain number of accounts and we don’t demand payments upfront.
Our percentages are reasonable, and we work on a contingency basis – we only get paid after we’ve recovered your revenue. We’re also good at what we do. Our recovery rate is twice the industry average.
#2 We Know Business Relationships Are Important to You
Although most debt collection agencies are above board, some use aggressive and shady tactics to collect payments. They may harass customers with intimidation tactics or robocalls in the middle of the night. Not only are these methods ineffective, but they can hurt the excellent reputation that you carefully cultivated.
Our “P.H.D. Philosophy” (Preserve Human Dignity) means that we treat people with dignity and respect. Whether the debtor is a business or a person, the debt recovery process is more effective when an agency uses ethical means.
Our letter and phone call campaigns are usually enough to recover payments. Most people clear their debts when a reputable collection agency is involved. And stubborn customers pay when they realize that their credit score could be affected. Unlike your business, we can report delinquent customers to the three major credit bureaus.
As a last resort, we can also pursue legal action through our litigation department. We do this after performing a cost-benefit analysis. However, we never take this step without your authorization. If you decline this option, the account is returned to our collection department for further action.
#3 We Work with a Variety of Small Businesses
We have served small businesses across many industries. This gives us a unique insight into the demands of each business. For example, we understand that collecting dental debt requires different tactics than auto debt. Here are some of the small businesses we serve:
- Veterinary Businesses: With so many expenses, such businesses can’t afford to write off debt. We help them recover their revenue through our veterinary debt collection services.
- Landlords:Our commercial tenant collection services are utilized by landlords when their renters stop paying rent or break the lease.
- Self Storage Businesses: These businesses are often the victims of customers who skip town without paying rent. Led by private investigators, our powerful skip tracing department can trace debtors and their assets across state lines.
- Independent Cellular Dealers: Such businesses are in a tough position. They’re caught between big carriers and customers that abuse chargebacks and disappear with their equipment. Our services help these small businesses recover what they’re owed.
- Employers: Summit A*R can help small business owners who have been stiffed by a former employee. This can include overpaid salaries, unauthorized expenses, tuition reimbursement, commission recalls, and more.
#4 We offer AR Consulting
Our experienced accounts receivable management professionals at Summit A*R have helped many small businesses improve their collection process. You can reduce your debt write-offs and avoid customer delinquency with our expert advice.
You can also use the multiple AR calculators on our platform, free of charge. Check out our days sales outstanding calculator (DSO) to measure the time it takes for your small business to collect your accounts receivable. The DSO can help you gauge the effectiveness of your credit and collection policies.
Other tools on our platform include the accounts receivable turnover calculator, the accounts receivable aging calculator, and the days of inventory on hand calculator. Take advantage of these tools to better your enterprise.
These are a few reasons why Summit A*R is an excellent partner for small businesses. Get in touch with us today for your collection needs. Our experienced and friendly professionals can formulate a recovery plan based on your requirements. Our goal is to recover your revenue within 90 days; however, some debts can be collected within the first few days.