In-House Debt Collections, TM Building

With billions and billions of dollars in debt worldwide, both creditors and collection agencies are feeling the pressure. Debt collectors looking to recover outstanding receivables must employ techniques that will encourage debtors to pay.

  • Overview With billions and billions of dollars in debt worldwide, both creditors and collection agencies are feeling the pressure. Debt collectors looking to recover outstanding receivables must employ techniques that will encourage debtors to pay. Successful debt collection and outstanding receivables collection techniques will help the collector get the account settled immediately, while still being mindful of the laws that protect debtors.
  • Background TM Building Damage Restoration, a licensed general contractor located in Tucson, Arizona for over 30 years. The company has a part owner with a dynamic and energetic person who serves in two capacities; Marketing Director and In-House Collections Manager. She faces many challenges and frustrations as an in-house-collector. She frequently encounters many excuses from client’s delinquent in paying their invoices. Excuses include, “I never received a bill”, “My invoice was incorrect”, or “TM Building Damage Restoration [allegedly] didn’t do all of the work”. She feels that approximately one-third of her cases were downright fraudulent.
  • Solution In 2012, TM Building enlisted the assistance of The Stevens-Lloyd Group, Inc. to help tackle their commercial debt recovery problem. The Stevens-Lloyd Group helped create and implement a program which proved successful in recovering nearly all of TM Building Damage Restoration’s outstanding receivables! Some of the tactics used in helping collect the commercial debt included:
    • utilizing an extensive phone log to keep detailed call records
    • conduct research on her customers utilizing TM Building’s database
    • calling weekly on all accounts 30 days past completion
    • focused mainly on receivables between the $7,000 to $9,000 range
    • asks for payment in full
  • We were happy to assist our client in crafting an in-house debt collection process. That is just one of the services we offer at Stevens-Lloyd Group. For more information on other techniques please read https://www.stevenslloydgroup.com/debt-recovery/collection-agency-credit-managemet-recover-outstanding-receivables/ The key to our success was perseverance and know-how from our collectors and attorneys in Florida and California. As a result, the Stevens-Lloyd Group was able to effect payment in full for GM Air on an account which would’ve been written off by our client or a less effective commercial debt recovery firm.
  • Recommendation
    Team up with a world-class commercial debt collection agency to help recover unpaid debts and institute an effective debt recovery system. In our experience, successfully collecting on past due accounts has a lot to do with the expertise of the collector. The more seasoned the collectors, the better the results. For companies without internal collection expertise we recommend turning accounts over sooner, 60 – 90 days. For larger corporate companies with experienced collection teams, we recommend turning over past due accounts at 120 days. If you have accounts that are over 180 days past due, we recommend IMMEDIATELY turning them over to a collection professional. Remember, the likelihood of collecting drops to 50% Between 6 – 9 months past due.