1st Party Collections
1st party collection refers to a company using its own employees to collect on unpaid invoices. However, not all businesses have the staff to follow up on past due receivables so they may need to use an outside vendor.
First Party outsourcing may sound like 3rd Party outsourcing, but they are quite different. A 1st party vendor is simply completing the tasks their customer wishes they had the bandwidth to do themselves (ex. make follow-up calls, send invoices, mail demand letters, etc.).
We all know that days 1-60 of the receivable lifecycle are critical to your cash flow and the overall health of your organization. We also know that most people either don’t have the time or simply aren’t comfortable calling someone and asking them to pay their bill. This combination can have devastating effects, which is why many companies choose to outsource their follow-up tasks.
At VeriCore we work with our clients who need 1st Party collections assistance to create a workflow that matches their needs and budget restraints. Let’s talk about how we can reduce your in‐house workload and keep your cash flowing.
3rd party Collections
When you’ve exhausted your in-house collection efforts and need assistance from an outside collection vendor (a collection agency or an attorney) this is described as hiring a “3rd Party” to represent you and assist in the recovery of money owed. Regardless of how well your in-house credit and collection policies are followed, there will be a small number of stubborn customers who are unwilling or unable to pay their bills. This is when a 3rd party becomes necessary.
How will my customer be treated?
It’s important to remember that hiring outside help doesn’t mean giving up control of how your customers are treated. As you can imagine, in general, collection agencies and attorneys use very different techniques and approaches. Those differences get more nuanced as you learn that individual attorneys and debt collectors have their own tendencies and preferences. It’s important to consider which is best for your business and your customers.
At VeriCore we take this selection process very seriously and understand that each of our clients have their own unique perspectives on how they want their customers handled. While some clients prefer a more aggressive approach with little concern on maintaining the customer relationship, other clients may want more of a mediation approach to balance the objectives of collecting the balance and repairing the relationship. Over our 20+ years collecting commercial debts, we’ve developed winning techniques and strategies for a variety of collection treatments. We will happily work with you to determine which approach is best for each of your debtors.
International debt collection is infinitely more complex than Domestic debt collection. It’s vital that debt collectors properly navigate the cultural complexities and international legalities to ensure the highest possibility for success.
Some issues are obvious such as crossing international time zones and overcoming language barriers, but others are more complex such as understanding local customs and adhering to local laws or rules of engagement.
For the last 22 years VeriCore has been cultivating relationships with US Embassies and legal representation worldwide that allow us to have the knowledge necessary to leverage relationships and ultimately collect money that is often seemingly lost forever.
Don’t trust your International collections with just anyone, make sure you use an expert!
There will always be some obstinate debtors who refuse to pay their bill without legal intervention. In this case, most agencies do one of two things:
They drag their feet on closing the account because they don’t have an effective legal department,
They suggest you sue every account they can’t collect because they charge a “management fee” on top of the costs of the attorney so they have zero risk and all reward.
At VeriCore we evaluate each account individually and when appropriate, we provide the option of a seamless transition to our legal department. We do not charge any type of management fee for these services, so we do not recommend legal on files where we do not think there is a reasonable chance of recovery.
Working with Our Network of Creditor’s Rights Attorneys
Our legal team has cultivated a network of contingency-based creditor’s rights attorneys to facilitate your lawsuit. Each attorney in our network was chosen based on specific criteria and requirements, and we’ve maintained relationships with the best of the best for decades.
There’s no need for you to worry about keeping track of case timelines or requirements. Our legal team has it covered and will keep you updated.
Collection Tools and Techniques
Our collection team is highly trained in the art of effective communication, mediation, escalation, de-escalation, and compliance with local regulations. Importantly, they are also trained to identify patterns of duplicity using investigative tools.
Said another way, in addition to communicating directly with debtors to collect the balance due, our collectors are also gathering information from other sources to verify the claims being made and stress-test the debtor’s excuses.
It’s important to accurately answer 1 critical question:
Is your debtor unwilling or unable to pay?
These two circumstances are very different and are treated accordingly. The problem is that many who are unwilling will claim to be unable, and some who are unable will claim to be unwilling. Getting to the truth is vital to our success, which is why we conduct independent solvency investigations.
What does a Solvency Investigation Entail?
While the specifics of our collection tools and techniques are closely guarded secrets, the ones related to the solvency investigation are designed to determine:
- Your debtor’s corporate status
- Are they paying other vendors?
- Do their bank accounts have funds to cover the debt?
- Do they have access to a line of credit or family money?
- What is their status with their landlord?
- Are there regulatory fines or complaints?
In the unlikely event that we are unable to collect your money, our Solvency Investigation gathers critical information to help you make educated decisions post-collections’ as well.
ZERO Fee Collections
No one wants to incur the costs of using a collection agency to help collect their receivables. That said, collection agencies are a necessity in business, so for decades, creditors have taken it on the chin and paid these costs. At VeriCore, we’re changing that.
If a customer breaks their credit terms and refuses to pay what is owed, is it fair that you should bear the costs associated with debt collection services? We fundamentally believe the answer is NO and that is why we developed our ZERO Fee Program.
How does ZERO FEE debt collection work?
ZERO Fee Collections is simple. Where legally allowed (thankfully most states agree with us), we add the cost of collections to the principal balance you place for collections. When we recover the principal balance and ALL the collection costs, our clients pay ZERO for our services. When we recover the principal balance and SOME of the collection costs, our clients pay drastically reduced commissions, typically in the range of 1-9%.
Our #1 objective with ZERO FEE Collections’ is to return to our client 100% of their principal balance!
Our experienced debt collectors use proprietary techniques and leverage existing state and federal laws to compel past due customers to pay the cost of collection themselves.
Sound too Good to be True?
In the first 5+ years of our ZERO Fee Program, we have performed over 2,600 ZERO Fee Collections for our clients and countless other collections where we recovered a portion of the costs.
No agency can guarantee they will collect your money and we can’t guarantee we will recover all your collection costs either, but after 5+ years of perfecting our program, we are freakishly good at it!
Don’t just take our word for it. Just ask and we will give you a list of clients to call in order to verify the success of our ZERO Fee Program!