We started in business as a collection company when we did not have a line of credit. We have accumulated approximately $300,000,000 in defaulted contracts and generally have a stellar reputation with our clients and in the industries we represent. Essentially what separates us from our competition is this:
- We hire mostly college graduates with good communication skills, with good credit and are well groomed. These three criteria usually ensure us excellent employees.
- We pay a commission onevery dollar collected. In addition, we guarantee a base wage of $1500 per month. This is very unusual in the collection field. Most other competitors use a draw or advance against commissions.
- This combination of guaranteed salary and commission on every dollar collected ensures us loyalty, tenure and performance.
Our collection program is unlike any of our competitors in that we do not settle or make payment arrangements with any debtor until they prove their inability to pay the balance. We require any debtor to pay the balance in full with cash, check, or credit card. If they cannot do that then we require them to make three attempts to borrow the balance from established lenders. If they get turned down then the denial notices must be sent to us. At this point we run our own credit bureau (we are lenders and can determine their future ability to pay) and determine whether it would be in the clients best interest to settle at something less than 100% or to take a sizeable down payment of 25% and monthly payments thereafter. In the worst cases of poor credit it is sometimes more prudent to take 50% of the balance to settle as opposed to monthly payments. This system has made our collection company very successful.
Our client base includes several billion-dollar corporations that use us almost exclusively for their collections. In order to trust us with their accounts they had to be sure we would do the best job for them.
OUR FEE FOR COLLECTIONS IS GENERALLY 33-1/3%OF THE GROSS AMOUNT COLLECTED MONTHLY
Our target markets are those that we currently finance or service. In addition to our current clients, just about any company that provides consumer or commercial accounts receivable is a potential client. We recently started collecting on a new market, commercial leases, and it has been extremely successful. Remember, unlike our financing company, which is exclusively consumer loans, our collection company can work on commercial accounts as well.
Because collections are so competitive, we try and separate ourselves from our competition through the following:
1.Hiring policy stated above.
2.Pay scale stated above.
3.Collection system stated above.
4.6 years of Audited financial statements by Deloitte & Touche, LLP.
5.Financial condition.
6.$1,000,000 in both Fraud and E&O insurance.
7.Lengthy list of references and recommendation letters.