If your job description involves collections at all, you need to know how commercial collection consultants can help you. If you have a small business, work for a large company, or even are part of a government concern that does collections like a utility or a tax office, at some point you may have considered hiring a collection agency. Commercial collection consultants are even better.
Commercial collection consultants handle collections but unlike a collection agency, they use the most modern and up to date methods of recovering money. Whether it's gathering information under the auspices of an audit, hiring a private investigator to help, or keeping an eye on collection deadlines in order to maximize collection efforts, a commercial collection consultant will solve your collection problems.
The audit is a method invented by commercial collection consultants, and it's proven to be very effective in getting money back, especially when you need to collect from good clients who you don't want to upset with standard collection techniques like repetitive calls and invoicing. If one of your best clients is suddenly having trouble paying, calling in a commercial collection consultant to do an "audit" can often solve the problem.
They claim to be auditing receivables for you and mention in the course of conversation that this audit has uncovered some past due amount that's owed to you. They then present the debtor with options for paying this amount. It lets the client save face, and often the prospect of any kind of audit prompts them into paying quickly.
But what about clients that lean more towards deadbeat than good? This is where using a private investigator is a wise idea that will help you get money back. First, a private investigator is skilled at finding people who you may not be able to contact. When they do skip traces they find new phone numbers and new addresses for people who may have been obscuring their location from your collection department. This puts a serious crimp in the debtor's plans to avoid you.
A private investigator can also do a search for assets on the debtor. This will let you know whether or not the debtor actually has any capacity to pay or not. If you have to hire an attorney to collection a judgment, you want to be damn sure that there is actually something to collect against.
You'll also be able to find out how many judgments are also outstanding against this debtor and whether or not they have any bankruptcies on their record. Commercial collection consultants consider this information to be crucial because if the debtor has more judgments than assets there's a point of no return, and if he or she is a habitual bankruptcy filer you may want to concentrate your efforts on recovery elsewhere.
The last thing a commercial collection consultant can do for your business is to keep an eye on the law of diminishing returns. After 90 days, statistically you lose about 20% of your likely recover. At 180 days, this number rises to more than 30%, and after a year it goes up as high as 55%. Commercial collection consultants who have your best interests in mind will do their best to recover this money in a timely manner. A good commercial collection consultant will keep this in mind and concentrate their efforts in a timely manner so that you are likely to get the largest return on your open receivables.
Author Resource:-
David P. Montana has been a leading industry expert, business consultant and published author in collection agency services for over three decades. He offers more important tips and resources on commercial collection consultants and commercial collection agencies.
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