Frequently Asked Questions
One of the most effective tools we use, as a third party collection agency, is to make a personal visit to the debtors' place of business. This creates the maximum motivation for debtors to resolve their accounts immediately. This approach is something no one has ever done to the debtor and for them is quite an unnerving experience, while at the same time maximizes your dollar return. If making telephone calls and sending a dunning letters could have resolved your credit management account, you wouldn't have an account to turn over to us.
The information we gather our initial asset and liability investigation normally reveal more information for our clients than most debt collection services canprovide during the full course of their collection activity. We maintain a network of field collectors located throughout the world. Most debt collectors only options are to make phone calls and send letters, the same techniques that didn't work for you.
Over many years we have, as a commercial debt collection agency, perfected the use of investigators to make legal demand, face to face, in the debtors' place of business. This technique is the most successful course of collections action, period.
Asset & Liability Investigations accomplish two things:First, they give you and us, as your collection agency, a snapshot of thedebtors' ability to pay. Finally, we are able to recommend to you the best course of action to resolve the debt. Sometime it is appropriate to move forward with litigation, judgment, and levy. Other times it is best to quit pursuit as the debtor is out of business or has no assets to warrant any further expenditure of time or money. Wewill let you know either way.
Sterling United, as your collection agency, maintains legal representation to help assure that your rights as a creditor are upheld. Our network of attorneys will answer any questions regarding your legal alternatives and should you wish, pursue those alternatives for you. Sterling United has built long standing relationships with law firms specializing indebt collection throughout the world.
Sterling United is a licensed collection agency and as such has the ability to find your debtors current location and provide you with one or more of the following confirmed home address, residence or cell phone number, place of employment or bank account.
Our detailed, timely, and exact Customer Background Screening reports will make enable you to do business screening as never before. This will enable you to discover a bad company before they become yourbad customer, These Customer Verification reports will also let you make decisions as to who can have credit and in what amounts. Sterling United's in-depth vendor assessment provides credit management departments with solid information on which to base these credit decisions. These types of business decisions will change your company's bottom line for the better.
Accounts receivable management is the early-out phase where we can prevent many issues from becoming later problems. We seamlessly become an expert arm of your firm and work with current invoices from the day the invoice is created. This can be outsourcing service for medium to large companies that want to protect current relationships and their bottom line. This is done with less staff and overhead commitment on your part. The U.S. Department of Commerce reports that over 10% of receivables are lost in the 1st 60 days of delinquency. Sterling United will reduce these losses for you while keeping current customers andincreasing your sales.
Most businesses grant credit to their customers to create along term relationship and to improve sales and the bottom line profit. When these customers do not pay their debts in a timely fashion the bad debt turns into liability. This in turn puts into jeopardy the credit worthiness and ability to carry on business of the credit grantor.
Credit managers are responsible for either collecting or resolving these bad debts. There first approach is to try and collect the over due accounts in-house. Collecting bad debt is a time intensive and expensive process. These issues create a need for additional staff, training, and overhead.
Failing to effect collection or settlement a credit management departments next best hope is to send the bad debt accounts to a commercial debt collection agency. A commercial debt collection agency is a better option than an in-house system as it is more professional, costs less and has a much higher return.
Commercial debt collection agencies have highly trained professionals working only on past due debt. These professionals are experts in complicated world commercial debt collection. The best collection agencies in the world make use of personal calls on the debtor. This face to face approach collects more money, identifies assets,and establishes the ability of the debtor to pay.
Collection agencies will also enable your company eliminate most bad debt before it becomes a problem and with help you maintain good customer relationships. A top notch collection agency is the best business partner you can have.
The best time to engage a collection agency is when you start to feel that your customer is not going to pay you. In any case do not exceed 60 days past due. Remember the earlier you move to force collection the higher your net return will be.
In house collection departments can expect to collect accounts that are:
- 60+ days = collect 73 %
- 120+ days = collect 50%
- 180+ days = collect 25%
- 12+ months = collect less than 10 %
If it is important money to you, you'll want to hire acollection agency once the account is 60 days overdue.
Some warning signs that your customers isn't going to pay:
- Moving and failing to file a change of address
- Won't react to telephone calls, or letters
- Claims they don't owes you
- Disputes the quality long after delivery
If any of these warning signs are obvious don't wait, engage a collection agency immediately. These type of accounts demand an aggressive approach to give you the best change of collection. Most have other creditors. The creditor that is the most aggressive is likely the one that will be paid first. This is were the battle is won or lost. This is where we specialize.