Commercial Collections Blog

Debt Recovery Solutions

Debt Recovery SolutionsAll businesses at some point in time will come across troubles of dealing with past-due accounts receivables. The important things to remember are a few key points regarding the delinquent AR. You must identify how extended the line of credit is or the terms regarding the agreed pay schedule you had with your client. Knowing the full extent of any terms and conditions between you and your customer will help you the most when it comes time for you to collect. The situation will be different however if you are dealing with a COD or Cash on Demand account. With any COD account that has not been paid in a timely manner, action must be taken quickly to ensure the return of funds or product. Once you realize that they are past due Net 30, 60 days, etc. you should contact your in-house collections department. Some large businesses will have their internal process, but once you have exhausted all of your  resources of unreturned phone calls, emails and visits, an outside source may be desirable.


Collection agencies come in a variety of specialties; they can handle anything from personal and consumer debts to the business to business type debts. It is imperative that you research for a legitimate agency that not only specializes in the kind of collections you need but also has the right tempo that you want. The tempo of an agency can make or break your relationship with your customer. Not all delinquent accounts are generated because someone is a purposefully trying to steal from you; occasionally it may be a confused new accounts payable person who just took over the position. There are cases where you don’t want a “hammer” or “bulldog” of an agency potentially ruining your relationship with a long-term customer over a misunderstanding. In lieu of that, you don’t want the soft gloves approach used on someone who has not only stopped paying their bill but has proceeded to run up credit with your local competitors. If you ask the right questions when talking to a new potential agency you may be able to find out if they are flexible in their collection methods.

Tools of the Trade

Their credit reporting, license and bonding and rates are just a few of the topics you will want to ask about. Skip tracing is an essential tool used by most agencies to find any person or company who may be in hiding. Skip tracing also is helpful if the agency that you hire offers the service of credit checks. Having corporate credit checks done on any new potential customers will drastically improve new business prospects and reduce the chances of a bad deal. Along with credit reporting and legal expertise, the fully encompassed collection company will have everything that you need.


Another option to factor in your decision of selecting an outside source for help is the rate at which you will pay. There are companies out there that will make you sign a contract and pay a fee no matter how successful they are in collecting or not collecting your money. Your best bet is to find an agency that works off of contingency. That means if they do not collect, you do not have to pay. The rates for contingency can vary depending on the age of the account, the total amount, local or international etc. Some collection agencies even will have associations or industry special rates designated. Rates can also be determined by the size of the balance needing to be collected. Some collection agencies will not take any account under $500 while others can’t handle anything above $100,000.


Regardless of the size of your company or the size of your debt, you can always call us for help. We are open, reliable and thorough in our work. To find out more about how Burt and Associates can assist you with your debt collection needs, call us at 1-877- 740-7839. Let us find your best solution to your debt recovery today.

Debt Collection News

  • Infusystem Hldgs, Inc. (INFU) COO to Retire, Hires CFO

    April 25, 2018
    The first, Terry Armstrong, brings over 40 years of experience in revenue cycle management, healthcare receivables and collection, information technology. Mr. Armstrong is currently President of State Collection Services, Inc. (“SCS”), a healthcare revenue cycle company which provides accounts ...
  • The Washington Insights Conference is Just Around the Corner: Here's Who Will Be There

    April 25, 2018
    Mick Mulvaney, the CFPB's Acting Director, will keynote the conference while Thomas Pahl, recently appointed Policy Director, Markets and Regulations at the bureau, will provide valuable input to the accounts receivable management industry during the conference, May 21-23 at The Madison ...
  • Sterling Bancorp announces record results for the first quarter of 2018 with earnings per share ...

    April 24, 2018
    In addition, fee income generated on payroll finance loans increased $1.2 million (which represents the majority of the increase in accounts receivable management / factoring commissions and other related fees) and other loan fees including letters of credit and loan swaps increased $433 thousand ...
  • Customer Woes Cause Healthcare Services Group's First-Quarter Profits to Evaporate

    April 24, 2018
    $25 million worth of accounts receivable from Genesis HealthCare is being converted into notes receivable. Management believes this move will strengthen its customer payment obligations. The dividend was raised to $0.19250 per share. This marks the 59th quarter in a row of dividend bumps.
  • Accountant, Revenue and Receivables

    April 24, 2018
    LendingTree was founded in 1996 by CEO Doug Lebda to help people comparison shop and get a great deal on the single biggest transaction of their lives: their mortgage. Since then, we've facilitated over 65 million loan requests, while becoming a household name (our brand recognition rivals Bank ...
  • Kaulkin Ginsberg Announced its Next KG Prime Collaboration

    April 24, 2018
    Ontario Systems offers a full portfolio of software, services and business process expertise, including product brands like Artiva RM™, Artiva HCx™, Contact Savvy®, and RevQ®. Ontario Systems customers include 5 of the 15 largest hospital networks who actively manage over $40 billion in receivables ...
  • VersaPay Adds Regency Centers a Leading US REIT to Growing Customer List

    April 24, 2018
    provider of cloud-based invoice-to-cash solutions including electronic. invoice presentment and payment, automated accounts receivable, cash. application and collections management, is pleased to announce that it. has added Regency Centers as the latest organization to implement. ARCT.