This Is How Difficult Debt Can Be Recovered
Regardless of the size of your business, it can be frustrating to deal with a delinquent account. When payment is well overdue and the client is unresponsive, you may even consider writing off the debt. After all, statistics suggest that more Americans are defaulting on their auto loans, credit cards, and other payments.
As an experienced and highly effective agency that offers commercial credit collection services to a variety of clients of different sizes and across many industries, we strongly advise that you don’t write off that debt yet. Over the years, our team of experienced, licensed, and skilled debt recovery professionals at Summit A*R have recovered some particularly difficult debts. Instead, give us a chance to recover your revenue.
You have nothing to lose. At Summit A*R we work on a contingency basis. We have no mandatory minimums, nor do we demand a certain number of accounts. We only get paid when we’ve recovered your revenue.
Our rates are reasonable. Depending on the age, type, and balance size, our contingency fee is between 7.5% and 50%. After your payment is recovered, it’s deposited into a trust account that’s regulated by the state, and you sent to you on the 10th of the following month.
Prevention Is Better Than Cure
At Summit A*R, we believe that it’s important for any business to take preventative measures. Follow these important tips on getting your invoices paid on time to avoid wasting your time, energy, and resources chasing debt.
- Send your invoices on time. Don’t give your clients an excuse to pay late. Deliver your product or services as promised.
- Avoid making mistakes on your invoice. Errors on an invoice can develop mistrust and delay your payments. Also, make sure that your invoice is detailed. If your customer hasn’t responded, then follow up with a polite reminder on phone or email.
- Train your financial department to learn the latest accounting software to improve the efficiency of your AR process.
- Don’t ignore the warning signs. If your potential customer fails credit, background, and reference checks, then they may not pay on time if at all. If your customer is needlessly nitpicky, then they may be looking for ways to renegotiate payment terms. They may also be looking for excuses not to pay you.
- If your loyal customer is facing temporary financial hurdles, then extend the deadline or offer them different payment solutions. However, if you suspect that a client simply doesn’t intend to pay or is in financial quicksand, then don’t waste time. Remember, debt grows harder to recover with time. Partner with Summit A*R before you are beaten to the punch by other creditors.
If your debtor is ignoring all your attempts to contact them, then don’t panic. Avoid harassing or threatening your customers. Aggressive actions will make it harder to recover your revenue.
A professional and friendly attitude is most effective. At Summit A*R, we treat customers with dignity and respect with our “P.H.D. Philosophy” (Preserve Human Dignity). Debtors usually respond to our sensitivity and compassion – we boast twice the national recovery rate. Get in touch to learn more about how we can help improve your accounts recovery process and put you back in the black, even if the debt is older.
Here are a few ways we can recover your difficult debt:
#1 Phone Call and Letter Campaign
Many debtors pay quickly when they realize that a powerful debt collection agency is involved. Once your account is handed over to our recovery department, we prepare a campaign of demand letters and phone calls. We are careful to get the point across without harassing or intimidating debtors. Usually, this is enough to convince a debtor into clearing their dues.
#2 Skilled Negotiation
Some shady debt collection agencies use underhanded tactics like threats or robocalls. Some may misrepresent themselves as law enforcement. Such methods are outlawed by the Fair Debt Collection Practices Act (FDCPA). Debt collectors who break these laws can be heavily fined or blacklisted.
At Summit A*R, we realize that most people want to pay their debts. We help them find a way by giving them manageable solutions. For more stubborn customers, our experienced collectors use skilled negotiation tactics to convince them to pay.
#3 Credit Reporting
In our 23 years in the industry, we’ve noticed that most consumers and businesses value their credit scores. Unlike your in-house collections department, we can report either to the major credit bureaus. Many debtors are willing to work with us when they realize that their credit report could be adversely affected.
#4 Skip Tracing
There are many reasons why you are unable to reach your customer. Perhaps they’re ignoring your phone calls, letters, and emails, or maybe they’ve skipped town. Instead of taking responsibility, some debtors pack their belongings and leave town. They falsely assume that they can’t be tracked once they’ve crossed state lines. Some even try to minimize their digital footprint to avoid contact.
They may close their social media accounts, turn off their cellphone, and minimize contacts with friends and family. If this sounds like your debtor, then don’t worry. At Summit A*R we can find people and their assets because of our powerful skip tracing department, which has a higher find-rate than our competitors.
Our skip tracing department is led by a licensed and experienced private investigator. We also have state-of-the-art resources that allow us to find debtors who don’t wish to be found.
We’re also well-versed in state laws across the United States. We understand legal formalities, even if your client is in another part of the country. Remember, it’s important to act fast if you feel that your customer is in another state because the statute of limitations on debt can vary.
#5 Full-Service Litigation
While we can usually manage most accounts, some require the attention of our full-service litigation program. If all other efforts have been completely exhausted, we can perform a cost-benefit analysis of pursuing legal action. Our licenced private investigator will complete a thorough financial investigation of your debtor. If we feel that legal action is feasible, then we approach you for legal authorization.
These are some of the ways we can help you recover revenue from stubborn customers. Don’t write off the debt if your collection efforts have failed. Give us a chance to recover your revenue. You’ve upheld your part of the bargain and deserve to be paid for your products and services.
Categorised in: Our Blog
This post was written by Summit A•R