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What To Expect From Our Agency

Debt recovery can be a difficult and time-consuming task, but at Turbo Debt Recovery we do things differently. The confidence, persistence, and core values of our team mean you get better results in less time than the competitors. These are the five ways our company goes the extra mile for our clients.

 

Liquidity Rate

Liquidity rate is perhaps the single most important aspect of any debt recovery agency. The liquidity rate is determined by the collections rate for the files placed with our office. The first thing to know is that it all has to do with timing. If debts are pursued and collected within 30 days of the account being past due, there is an 80% to 95% chance of recovering the balance in full. At the 90-day mark, the liquidity rate drops slightly to 75%. After 90 days, the chances of full recovery take a nosedive to 20-25%. By this time, consumer debtors could have filed bankruptcy, moved away and become harder to locate, or amassed debts to others. Commercial debtors may have sold or closed their company and may already have collections suits from other companies, pushing your claim to the bottom of their pile.

Knowing when to place accounts can often be a challenge. Setting an internal policy that’s followed can really make a difference. If the majority of your terms are on a “Net 30” time period, and you haven’t received any funds or communication by the 45th day (15 days passed the terms deadline), talk to us. You’d rather have a larger portion of something, than a whole of nothing.

 

Monthly Reporting

We always want our clients to feel connected to our company. This is why we send both a standard monthly report and a customized report for your business. The standard monthly report shows total inventory and how much of that is still open to collect. Your customized report is truly customizable! We can discuss liquidity rates, actions taken for each account, and discuss ways to improve your internal collections processes (more on that below). In addition, we can set up quarterly or biannual reviews to discuss big picture ideas and issues. While other companies may leave accounts open for six months to a year with few actions, little communication, and no results, we aim for transparency so that you know we’re truly doing everything we can for you.

 

Client Coordinator

We believe in person-to-person relationships, which is why our team of highly trained professionals are there for you every step of the way. As soon as you join us, we send a digital Client Services Manual. This document outlines our policies and procedures and answers many frequently asked questions. Additionally, it gives step-by-step instructions and guidance on

uploading accounts, fixing reporting errors, etc. You can use this as a reference, but we don’t stop our client relationship there.

The most important resource we provide to you is a designated coordinator to be your direct point of contact. When you call our offices, you’ll be met with a human voice, not a long list of prompts that take you to answering machines necessitating a long waiting time until a call back. Our employees don’t hide behind computers and emails. Building rapport with our clients (and the debtors) creates honest communications and better results.

 

Quick Results

The quicker you call us, the better chance you have of getting your claims paid quickly—that’s why we’re called TURBO Debt Recovery. Your accounts receive immediate personalized attention. Other companies will use automated calling systems to begin their collections process. Our team completes thorough research before reaching out to the debtor. Our goal is to weigh all the aspects of that debtors’ financial picture and work with them to create a connection that puts your outstanding balance at the top of their financial priority list. This is particularly important for persons who have multiple debts being collected on.

While it may be a victory for other debt collection companies to close an account after a year or year and a half, we demand results in a fraction of that time. In most situations, if a debt is not paid back within 60 to 90 days, it will qualify for legal action. There is no reason to wait on this for six months or a year. Our smaller team will outwork and outperform companies with 75 to 100 employees because we take personal interest in our clients and their debtors to create solutions for everyone.

 

Correcting Internal Processes

They say prevention is the best medicine and we agree. Our company prides itself on our consulting services. We review your in-office collections process to see how it works, what isn’t working, how much debt has been written off in the past, what your current liquidity rate is, and where your system can be improved. This service is available to any company, whether they have sent claims to us or not. The solutions we provide will create rules, procedures, deadlines, and consistency for your accounts receivable and in-house collections staff. Using our proven methods will reduce your number of outstanding debts and help prevent long waits for low rewards. Our goal is to make your bottom line go up!

 

 

We know you have your choice of debt recovery agencies, but we can provide what others can’t. If you want high liquidity rates, quick turnaround, open communication, and a better system for your company, we’re the debt recovery agency for you.

Red Flags and Credit Worthiness

Determining the credit-worthiness of a potential client can be a daunting task, even for seasoned professionals. A brand-new company with few assets might spoil you with glittering generalities and promises of prompt payment, but no assets can turn into aging receivables quicker than you think. Before you extend credit to a new client, it’s best to give them an in-depth review to ensure that your money isn’t getting thrown away.

With unforeseen business issues such as bankruptcy, transfers, sales, or even death, the process of lending money can get a lot messier than anticipated. Because of this, it’s good to prepare for these circumstances and evaluate all potential risks prior to beginning the lending process. While these problems can devastate anyone and any business, there are some warning signs or red flags to look out for that might indicate that a business you’re working with might fall victim.

Know Your Clients

The first thing you’ll want to do when you get a new client is run a few generic tests on them. Check their county court’s website for any records of them being sued. You’ll have access to the total balance sued for, which gives insight to their financial state. Balances of less than two thousand dollars should raise major red flags, as it indicates that they weren’t able to pay back this nominal amount in a timely manner. At the same time, also take caution if you notice very large balances as this might show that the debtor might not have been actively trying to pay the balance.

No matter what the balance is, there’s a reason it hasn’t been paid and it’s probably smart to talk to the potential client and see if there might have been other circumstances interfering with their ability to pay back their creditor. Quick lien searches on the owner won’t give you much insight to a company’s assets, but it will give you a good liabilities picture. If nothing pops up when you search the municipal court or common pleas website for liens, also run a quick search on the business and its principles. Make sure you’re checking a few neighboring counties for the most holistic view.

If you’re looking to get an asset picture on the owner, search for the company’s agent and incorporator on the Secretary of State’s website. Sometimes the incorporator and the owner are the same person, but if not, look at who they are and do some research on them, too. If the company was incorporated within the last six months, this should raise some red flags. If they don’t have a lot of money behind them and they’ve only been open for a few months, make sure you’re really investigating before you loan them anything. If they have a lot of money behind them, then not having a lot of credit shouldn’t be too much of a concern; they should be willing to sign a personal guarantee. Companies open for upwards of ten years are a safe bet; a nice website and positive reviews mean you’re probably lending to someone who’s creditworthy and will pay you back in a timely manner.

Proactive Awareness “Red Flags”

A good way to learn more about their financial responsibility is to call their credit references. Ask the referrer’s specific questions about how often your potential client misses payments, is late on payments, and the current terms they’ve agreed to. It might also be beneficial to ask if they’ve ever disputed a bill and if they have what the nature of it was. Having a previous dispute is not automatically a red flag, however, having several disputes might be cause for concern. Also run a search to see if the business (or business owner) has ever filed for bankruptcy. While you likely won’t see this, it’s a huge red flag that’s worth further investigation if you do.

The best thing that you can do with your current clients to ensure that you collect payment is work with them. As long as both parties are communicating their concerns openly, you shouldn’t have a problem.

Collecting payments can be difficult and often times are unsuccessful if you don’t collect within the 60 days past due, which is why companies like ours exist. Whether you have a difficult client that’s avoiding payment or you are part of a high-volume business that naturally experiences collecting on clients, unpaid balances can quickly become a large issue that puts a damper on your own cash flow. If you’re looking for professional, firm and polite collection assistance, give Turbo Debt Recovery a call today.