Require Third Party Flexibility on How It Handles Debtors

After reading Article #1 titled "Is Your Business Owed Money?" in my series of "Recover Your Business Profits" blog posts, your business should have concluded to use a third party which is a profit recovery company to free up those profits which are tied up in late past due accounts receivable.

Another critical question that must be asked before selecting which profit recovery company to use is, "How does it legally handle the debtors when contacting them?"

All creditors are not created equally. For that matter, nor are debtors all the same.

In some cases the business the creditor is in dictates the way their debtors should probably be treated.

For instance a bail bondsman creditor probably wants its criminal debtors contacted in a firm and forceful way for effectiveness. However, in contrast, a psychologist creditor probably wants its mentally disturbed patients treated in a polite and negotiating way for effectiveness. Moreover, other creditors may want debtors treated differently on an individual basis. Debtors whom the creditor never cares to do business with again can be handled in a tough manner. Debtors whom the creditor wants retained as a repeat customer can be handled in a coercing manner.

An effective profit recovery company will be able to adapt to the creditor’s desired debtor contact method.

The profit recovery company should be able to:

     1) legally “turn up the heat” with an aggressive intensive approach or

     2) legally “charm the snake” with a negotiating diplomatic approach.

These 2 methods should be able to be assigned uniquely to individual debtors on an account-by-account basis by a good profit recovery company. This fosters the ability for the creditor to get paid and then:

     1) never do business with that debtor again or

     2) retain the debtor as a repeat client.

Do you as a creditor always feel the same way about all debtors who are also clients? Does your opinion on how they should be contacted by a third party vary based upon how they dealt with you during your internal collection effort attempts? Did they insult you, taunt you, or laugh? Were they polite, apologetic, and humble? In summary, should all your debtors be dealt with in the same way? You need the ability to decide. In the end you want your money but you may or may not want a continued revenue steam from that debtor!

So insist that your profit recovery company offer intensive and diplomatic contact methods!

Finally, in those situations when a diplomatic method is desired with the hopes of retaining the debtor as a client, it really helps when a Thank You letter goes out when they do pay as “icing on the cake”. Inquire if your third party can do this?

To inquire about how you can work with a profit recovery company that has both intensive and diplomatic debtor contact methods as well as a flat fee of @$10 per late past due account and an average 56% recovery rate in 40 days for accounts turned over before they exceed 90 days late,

call us at:

818-710-0244


Series:            "Recover Your Business Profits"
Article:           #6 "Require Third Party Flexibility on How It Handles Debtors"