Collection Approaches

GET Customized Collection Approaches

While collection of delinquent receivables is always important, we recognize that customer retention is often a higher priority. Our system allows you to dictate which approach we use on each individula claim.

Our tactics vary and are determined by what you tell us about each account. You have the freedom to decide how your problem accounts are handled. You are not bound by an inflexible system, which will either succeed or fail. You can work with us and tailor individual approaches necessary to collect specific accounts.

Choose from the Strong Approach (“Boxing Gloves”), the Soft Approach (“Kid Gloves”) the Audit Approach (“Velvet Gloves”) and First Party (where we are simply an extension of your A/R Department).

Strong Approach (Regular 3rd Party Collections): This is when you do not necessarily want the bonds restored. We utilize our full investigative collection efforts, including informing them we will begin an asset investigation, visiting them with a private investigator when warranted, telling them we may contact their bank and vendors in our investigation, explaining that if prompt payment is not tendered then we will advise that efforts should be escalated, possibly incurring additional legal expense on their part, and describing how we move to execute judgments against property, bank accounts, etc.

Soft Approach: This approach is designed for new and long-standing customers who you wish to continue doing business with. Our collectors focus on resurrecting your customer relationship. While this approach still maintains bonds and stresses the desire for future business together, it quickly identifies disputes and separates customers from debtors. The customer may be having financial difficulties, or maybe they have decided to purchase from a competing vendor. The collector works to get to the real reason the debt has remained unpaid. While there is still a full collection effort with emphasis on the seriousness of the debt and the potential repercussions if they do not pay promptly, the customer is lead to understand that once this issue is resolved, the business relationship may be restored.

Audit Approach: This approach is specifically designed to maintain the commercial bond between you and your customer and quickly resolve the issue without them knowing they have been placed for collections. While it easily separates customers from debtors, they do not feel they have been “thrown to the dogs”. We do not use the “private investigator? or “asset and liability” tactics. We simply contact the customer and explain that we have been reviewing your books (similar to an audit) and we have noticed that there are outstanding invoices for their account. The first thing we ask is for them to look at their books and see if they also see these open amounts to make sure there isn’t a book-keeping error. Assuming they agree that the amounts are due, we politely request to send a courier over to pick up a check so we can close that portion of the books. Often, this simple 3rd party intervention results in immediate payment, possibly because they feel obligated to not disrupt an audit type procedure. Meanwhile, we will be performing a background financial investigation that they will be unaware of (including checking Secretary of State, confirming corporate status, identifying owners & partners, searching for tax liens, judgments, other collection activity, etc.). This full use of our research department allows us to see if the customer is in dire financial straits. If we do discover that the customer is in fiscal trouble, or our soft/audit approach does not result in prompt payment, we will then contact you to request permission to progress to stronger tactics. We will not proceed to a firmer approach without your authorization.

First Party Receivables Management (Outsourcing): This approach may be used by our customers who are ‘short-staffed’ in their receivables department. This is really a simple “outsourcing” service that we provide. When we contact the client, we do so entirely on your behalf, identifying ourselves as you (an extension of your accounting office). The client may not even know anyone outside of your office is involved. This approach can include a series of letters that we generate on your company letterhead. We contact them early in the aging process to ensure they are satisfied with the product and to improve customer service. If the account ages out, we contact them to let them know that there is an outstanding balance, that we want to make sure there is not an unresolved issue that needs to be addressed, and we then proceed to obtain a commitment full and prompt payment.

While it is in your best interest to recover your delinquent receivables quickly, it is also nice to be in complete control of the approach and tactics that will be utilized in the recovery efforts. Please call for further details. When placing accounts, we will assume the strong approach is to be used unless you inform us otherwise.