Better Commercial Debt Collection Services Through Preparation: An Agency Insider’s Perspective

May 9, 2023

Do your business operations need commercial debt collection services?

How do commercial debt collection services work?

We all operate under the correct assumption that collections and charge-offs are part of doing business for any financial institution. Our educated business minds work through the scenarios again and again. What can I do on the underwriting and research side to ultimately reduce future charge-offs? How many late payments constitute a problem account? Can we formulate a plan to foresee collection problems on the horizon and outflank them? Is getting a Judgment the right thing to do?

Commercial lenders and businesses are getting paid with Dedicated Commercial Recovery’s assistance and expertise in Commercial equipment finance and leasing, merchant cash advance and working capital, commercial property lease collections, unpaid purchase order collections, balances owed for security and janitorial services, and more. If you’re owed money for your business services, we’ll make sure you get it.

Now is the time to have the uncomfortable conversation about commercial debt collection services.

Almost all of us know how nice it feels to be on the upswing of a sales cycle. It makes the executives and/or owners of your company have that warm, fuzzy feeling. New business is filling up the books, payments are coming in at a good pace, and things have been out of the basement for long enough that 2008 seems a distant memory…

Preparation is one of the keys to success

Seems like the Boy Scouts have it right. Anyone out there remember The Great Depression? Very few would since it occurred from 1929 until the 1940s. The unparalleled level of corruption and greed that plagued Wall Street for years prior had finally caught up with our country, and it caused unimaginable social and financial horrors. The U.S. Department of Labor, the nation’s unemployment rate went from a low of 3.2% in 1929 to a high of 24.9% in 1933. In addition, this rate held in the 20% or above range through 1935; then finally fluctuated around 19% in subsequent years leading up to World War II.

Surviving in tough times

While it would be reasonable to assume most of us have known someone who survived The Great Depression. Do you remember what those people were like? Extremely frugal and conservative; living in almost constant fear of their financial future- telling stories of cooking and eating shoe leather, pets, all kinds of terrible things just to survive. Their sad stories even had a ripple effect on the generation or two after them. As a result there may even be some of you that have been personally touched by this.

Will tough times repeat themselves?

Probably everyone out there certainly remembers The Great Recession of 2008. Unemployment seemingly doubled overnight, “cutback” was the new office buzzword, and collections went through the roof. While successful businesses filed bankruptcy out of nowhere, equipment was disappearing, Personal Guarantors stopped answering their phones…just add in your own experiences. Let that sink in…it certainly was not a fun time to look at your portfolio. Therefore, don’t get complacent and let it happen again. Clients have related feeling overwhelmed, frustrated, and taken advantage of during that hard time. It is especially relevant to have a process in place you can trust prior to the next financial valley.

Steps for improving debt collections

There are steps that Dedicated CRI follows to help businesses with Commercial Debt Collection Services. See the article about 5 Key Steps that show How Commercial Collections Services help businesses. Keeping these 5 key steps in mind as you make decisions about the best ways to proceed with your commercial debt collections.

Here some additional steps companies can follow as a general rule when formulating their approach to past due accounts:

  • First of all- Exhaust all of your own efforts in a reasonable amount of time.

  • Secondly – Place the account quickly with a reputable and knowledgeable commercial debt collection services company you have properly vetted.

  • Finally, utilize all of the services a third party commercial collection agency has to offer.

In conclusion, give the agency time to work things out and investigate possible assets and the financial status of the delinquent party. Determine if assets are available, know possible jurisdictional pitfalls, and then make the decision if it is prudent to invest time and money in up-front fees on the account. You will find having a plan in place and being better prepared for potential problems will help you feel more confident facing the future, and whatever peaks and valleys your company will need to cross. Here’s to better collecting!

Contact Dedicated CRI to build a partnership you can count on for results.