Commercial Collections

Understanding the Dynamics of Commercial Collections

The process used for different types of collections varies by industry.

Unraveling Commercial Collection

Commercial collections aim to recover invoices that one business owes to another. The company providing the service sends an invoice from its accounts receivable department to the other company’s accounts payable department.

The business that sends the invoice expects the receiving company to pay within the contractually stated time frame. “Net 30” is a common contract term, meaning that the company has 30 days from receiving the invoice to make the payment and still be in good standing. When a long time passes without payment, the business may turn to in-house collections or send the debt to an outside collections agency. In either case, the goal is to get the company to repay the invoice through collections.

The Crucial Role of Commercial Debt Collection

Businesses need a steady cash flow to keep their operations running. When a business lacks the cash flow to pay its regular operating costs, its expenses may quickly exceed its income. Despite the need for steady cash flow, collecting from businesses takes time and effort. The commercial collections specialists at Southwest Recovery Services aim to ease the debt collection process to keep funds moving.

Commercial Collections vs. Consumer Collections

Here are the main ways commercial collections are different from consumer ones:

• Expected payments are often times larger, which can have significant effects on cash flow.
• There is no regulation by the Fair Debt Collection Practices Act, though some collection agencies need state licensing.
• Communication occurs through the accounts payable department or sometimes even the contracts department rather than an individual.

Commercial Debt Collections Process

Debt collection is crucial to business operations as it allows companies to maintain their cash flow to fund daily operations. At Southwest Recovery Services, our debt collections process involves these steps:

• Our clients do not pay any upfront fees and are under no obligation to sign any contracts or agreements.
• Our clients only pay us if and when we successfully recover their money.
• We will report any eligible accounts to the correct consumer credit agencies.
• We use our knowledge of local, state and federal laws to provide the most benefit for our clients.
• If needed, we can take legal action and manage the process through the appropriate courts.
• We provide our Client Portal for clients to assign and access their assigned accounts for review or to verify account statuses.

Our Debt Recovery Strategies

Since every financial situation is unique, we have a few debt recovery strategies to address the specific circumstances of the debt. As a top commercial debt collection agency, we use the following debt recovery strategies:

Segmenting Consumers by Risk Levels

Evaluating risk is a significant part of debt collection, and understanding as much as possible about the businesses owing you money allows us to group each case based on how likely they are to complete their payments. We can also use your segment data to determine which collection tactics to use. For example, businesses with a good track record of repaying commercial debt can receive reminders, those with a medium risk may undergo proactive steps, and high-risk companies need strong tactics and possible legal action.

Customized Payment Plans

Businesses struggling with paying their debt aren’t always trying to avoid paying at all. In many cases, they may be struggling financially or at risk of bankruptcy. To increase your chances of successful repayment, we can offer customized payment options so the business can regain a feeling of control as they complete the commercial collection process.

Prioritize Accounts

Whether you work with one or 100 businesses, knowing which accounts are of higher priority than others is vital to ensuring timely debt collection. Our debt collection system will help avoid lengthy discussions and help our collection agents expedite the process.

Emphasize Customer Relationships

While we may be dealing with commercial debt collection, positive customer relationships are still vital for the overall process. This approach can involve listening to concerns and working with a business to develop a repayment plan that works for both parties.

Incentivize Timely Payments

A great way to improve the debt recovery process is to incentivize timely payments. This process can involve tactics like loyalty discounts or rewards for paying on time. Or, we can explore options like offering bonuses for each referral. 

Legal Action

Legal action should always be a last resort in any debt collection process. Before we take legal action, we will have you consult with our legal professionals to understand your options and possible outcomes.

Mitigating the Risk of Nonpayment With Online Commercial Collection Services

In Southwest Recovery Services, you have a reliable partner that enhances your debt collection process and keeps funds moving through your business. We use technology to provide a better experience for businesses that come to us for collections. An online portal lets you see real-time activity in the debt collection process. It also allows for secure file exchange and other benefits, enabling you to check in on debt collection anywhere. 

Offering Commercial Collection Services in Texas and Beyond

Wherever your commercial business operates, Southwest Recovery Services can assist with collections. We’re known nationwide for our debt collection approach, and we serve customers from 11 locations across the country:

• Addison, Texas
• Austin, Texas
• Columbus, Ohio
• Dallas, Texas
• Houston, Texas
• Midland, Texas
• Oklahoma City, Oklahoma
• San Antonio, Texas
• Snellville, Georgia
• St. Louis, Missouri
• Tampa, Florida