The Misunderstood Art of Business Debt Collection
Our firm has been in the business debt collection industry for nearly four decades. Over that time, we have come across various misconceptions about what effective business debt collection looks like from the creditor's perspective. Some of the misconceptions include;
"We only use attorneys."
"How much would you be willing to purchase this debt from me for?"
"We received a purchase order from this new customer, shipped their product, and now they're not paying. Can you help us?"
These are the most common inquiries when someone requires business debt collection. Fortunately, many of these common issues are avoidable. The need for business debt collection services can be mitigated by taking proactive steps. However, if you want answers to the typical scenarios above, you are definitely not alone.
Would it be helpful to your business if you could avoid these typical situations? Business debt collection is not 100% unavoidable - even if you accept cash. Mistakes will inevitably happen. Understanding how effective business debt collection works will give your firm the best chance for recovery. At AAB, we are always looking for ways to improve our processes.
So, you might be wondering what characteristics of a successful business debt collection are. Wouldn't it be great if you could minimize the need for our services? Imagine the relaxed confidence you and your finance team would have if you had the full knowledge of business debt collections. You could proactively take precautions to minimize your risk.
What Can AAB Do to Help Realize This Outcome?
Having to call a collection professional is like calling the fire department because your house is on fire. AAB can be "on the scene" very quickly - but your house is still on fire. Not a pleasant experience. At AAB, we are interested in developing our client's internal credit process (from prospecting new customers to the successful receipt of the payment for your work). We examine what you did well and what areas require improvement. Our first goal is for you to experience success in business debt collections.
"We only use attorneys" - this is a prevalent option. Attorneys are excellent at obtaining court orders, but you still have to find a way to use the order to get paid. Most business debt collection attorneys are outstanding operators, but you must instruct them on what to do next. Plus, attorneys can't report to the credit bureaus. At AAB, you don't need to give us instructions. We know how to dig for the information required to bring your customer to the negotiation table.
"Would you buy this debt from us?" - AAB is not a debt purchaser. The creditor must have a corporate credit application before anyone would consider buying the receivable. They must also provide proof of delivery, an acknowledgment of the debt by the customer, and the debtor company must be operating as a going concern. Typical business debt collection is not always this straightforward. AAB works on a commission basis and is adept at working through the usual stall tactics to get your claims paid.
"We received a purchase order, did the work, and now they won't pay us" - Unfortunately, the probability of success in business debt collection is directly proportional to the credit quality of your customer. If your firm doesn't thoroughly check the credit quality of your prospective customer, you could be in for a significant loss. Sometimes the potential customer is a worldwide conglomerate with an excellent credit rating, yet you still have the experience of getting paid slowly. At AAB, our business debt collection knowledge helps us quickly navigate these challenges.
Trusted Business Debt Collection in Michigan
If your firm is experiencing issues with business debt collection or other issues getting paid, call us at 1-866-448-3936 or fill out the Contact Us form. Don't call an expensive law firm - let AAB check the probability of success of your business debt collection issue first. Remember, we only get paid if you do.