WILL THE COLLECTIONS INDUSTRY BE AFFECTED BY THE PANDEMIC? This is a delicate time in our country. We want to let our current and future clients know that we have had a contingency plan in place for just such an occasion. While there is no doubt that all collection agencies will be affected by this forced downturn in the economy, we are better prepared than others to to succeed. Since a portion of our staff was already working remotely, we were able to set the rest of our staff up with work phones and VPN secured computers at home within 48 hours of the lockdown taking effect. We have dealt with clients who have been through floods, natural disasters, fires, and other emergencies and we have always been able to make sure every possible dollar was recovered.
You may be asking yourself if you should hold off on placing accounts until this whole thing blows over. Given the conflicting timelines being reported in the media ranging from a few months until sometime next year, we would advise against this. It is estimated that half of all businesses and even some larger companies revenues have dropped by 50% or more, forcing them to make drastic changes to their staff and the way they normally do business. While it makes sense to try and give your debtors more time and to do the human thing, the creditors who place their accounts for collection first are the ones that will be paid. Those who hesitate or wait may end up having to write off the entire balance owed. We are urging all of our clients to place sooner rather than later. In a normal economy it is estimated that after a debt is allowed to age 6 months past its due date that only .67 cents on the dollar will be recovered. At 12 months this figure drops to .46 cents on the dollar, and at 2 years this figures drops to .12 cents on the dollar. That is in a normal economy with businesses not having to deal with a global pandemic restricting production, scaling down their overhead by laying employees off, and having to trust employees they do keep, to work at 100% capacity even though they are at home unsupervised. Panther, Chase, & Associates' will continue to treat all of your debtors in an ethical and professional manner taking into account how this time in our country has struck down even the healthiest of industries. However, it is up to our clients to continue with their normal procedures when it comes to outsourcing your past due clients. Keep in mind that your past due client's other creditors are not going to wait or hesitate. They are going to do what they need to do to protect that money that has already been generated, not knowing when life & business will get back to normal. If we can collect those funds and as a result allow our clients more freedom to do what is necessary during this rough corporate climate, then we will have done our jobs. We also offer a 1st party outsourcing service where we will act as an extension of your in house staff if you find yourself short of employees in this area. Our most sincere prayers go out to all of our clients and your families. We hope you are staying safe and healthy and taking the proper precautions. If you are in need of 3M N95 masks, please let us know as we were able to secure an allotment for our employees before they sold out. We are grateful for the relationship we have been able to foster with you and we promise to continue to work just as hard for you as we did prior to this event. We have no doubt we will get through this together and continue to prosper in the end.
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AuthorJohn Chase is a commercial collections expert and attorney who started in B2B collections in 1996. He has coordinated the collection of millions of dollars in B2B debt. Archives
February 2024
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