Senior management often seems to tighten up a bit when it comes to expenses such as systems, office equipment and even training for Accounts Receivable. I get it. Nobody likes to throw good money after bad and it doesn’t take a lot of smarts to figure out it’s better to walk away from a $5,000 sale you won’t collect than it is to spend another $1,500 or so and still not collect.
At the end of the line with a non-paying customer, a third-party agency with a ‘no collection – no fee’ approach is attractive. Yet, if legal action, even in the form of a lawyer letter is called for, you don’t want to pay legal fees and then commission.
Use your in-house attorney? It is an option, but often their expertise is not in collections and what may appear as savings is a loss of time and money in the long run. Recently, I had a conversation with Steve Monk, the Founder of CEO Law. He says that via his organization, rather than $1,000 or so per hour, the billing for a top-rated expert lawyer would be in the range of $200 to $250 per hour, with improved technology. Not only would clients know what is happening, almost in real time, they would be able to contribute on-line, saving time and improving performance.
Too good to be true? Perhaps. I have not had the chance to use their services myself but recommend my clients review and perhaps at least sample their services. If the services are as good as claimed, it means less good money after bad – and that is always a good idea.
By the way, it holds for collection training too. We offer a “don’t pay unless satisfied” guarantee. To everyone? Not quite. We’re good and we’re trusting – but we’re not stupid. It is offered to vetted and verified clients only. To find out if you are one, please send me an email.