Reel in More Payments

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Information on how to obtain more payments using various collection services.

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Reel in More Payments

  1. 1. Reel In More Payments Raul Mendoza, CMA Collection AE Specialist Paul Guillen, CMA Administrative Associate
  2. 2. Your Debt Collection Ability <ul><li>Customers avoid your letters and calls </li></ul><ul><li>You lack sufficient time to collect bad debt </li></ul><ul><li>Clients ask for an inch and takes a mile </li></ul><ul><li>You have customers who simply refuse to pay you </li></ul>It may be time to hire a professional collection firm if:
  3. 3. Your Collection Requirements <ul><li>Solid collections experience and expertise </li></ul><ul><li>Reporting ability </li></ul><ul><li>A flexible approach </li></ul><ul><li>A high level of customer service </li></ul>You need a full-service collection firm that delivers:
  4. 4. CMA Delivers What You Need These services are free to CMA Members CMA’s experience in the challenging world of debt collection has resulted in a phased, effective approach that includes: ACCEL Demand Service PreCollection Service Ten-Day Free Demand Service
  5. 5. What is PreCollect and When Should I Use it? <ul><li>An effective payment reminder on slow paying accounts </li></ul><ul><li>Customized demand letters and service as needed </li></ul><ul><li>Relief to you and your staff when time is limited </li></ul><ul><li>Added leverage coming from a third party </li></ul><ul><li>Increased cash flow </li></ul><ul><li>The opportunity to withdraw within 30 days —no questions asked </li></ul>A unique letter writing service that provides:
  6. 6. ACCEL Demand Service <ul><li>Two letters are sent, which are tailored to your specific parameters. </li></ul><ul><li>You control when and to who letters are sent by updating the Excel spreadsheet. </li></ul><ul><li>Payments during ACCEL Demand cycle go directly to you, NO FEES ATTACHED! </li></ul><ul><li>At the end of the ACCEL Demand cycle (30 days), all unpaid files will roll over into immediate collections. </li></ul><ul><li>It’s like adding a “virtual collector” in times when companies are downsizing. Frees up time to concentrate on more demanding accounts. </li></ul><ul><li>Key is to have constant communication with debtors while generating cash flow. </li></ul>Keep Collections simple, send us an Excel spreadsheet of your past due accounts and we will take care of the payment reminders.
  7. 7. Sample Letter One <ul><li>Re: Creditor Company Your Account # Balance: $ </li></ul><ul><li>Dear (Debtor Name): </li></ul><ul><li>Your company has ignored previous communications regarding your past due amount owed to Creditor Company. We do not understand why you have not tried to communicate with Creditor Company in regards to this overdue account. </li></ul><ul><li>At this time, we are requesting the full balance due. We must receive your payment in full within 30 days from the date for this letter or your account will be placed for collections. </li></ul><ul><li>Please understand that if this balance is not paid, it will be reported to credit reporting agencies. Also, if you have a personal guarantee on file, this may affect your personal credit. </li></ul><ul><li>If this matter is not resolved, it will have a negative impact on your company’s business score and may ultimately restrict future lines of credit. </li></ul><ul><li>Sincerely, </li></ul><ul><li>Credit Management Association, Collection Division </li></ul><ul><li>Please remit payment to: </li></ul><ul><li>COMPANY CONTACT YOUR COMPANY ADDRESS CITY, STATE ZIP PHONE </li></ul>
  8. 8. Sample Letter Two <ul><li>Re: Creditor Company Your Account # Balance: $ </li></ul><ul><li>Dear Debtor Contact: </li></ul><ul><li>Credit Management Association is a member owned organization serving the business credit community for over 125 years. CMA has been engaged to effect collection on behalf of Creditor Company for a past due debt owed by your company. </li></ul><ul><li>As a result, we herby make a demand for full payment of $ in connection with the stated debt. We must receive your payment in full within ten (10) days from the date of this letter or your account will be placed for collections. </li></ul><ul><li>If this matter is not resolved, it will have a negative impact on your company’s business score and may ultimately restrict future lines of credit. </li></ul><ul><li>Failure to do so may result in our taking whatever collection/legal remedies available in order to protect our client’s interest(s) in this matter. Understand that if this balance is not paid, you will be reported to all credit reporting agencies. Also, if you have a personal guarantee on file, this may affect your personal credit. </li></ul><ul><li>Make no mistake of our intentions </li></ul><ul><li>Sincerely, </li></ul><ul><li>Credit Management Association, Collection Division </li></ul><ul><li>Please remit payment to: </li></ul><ul><li>COMPANY CONTACT YOUR COMPANY ADDRESS CITY, STATE ZIP PHONE </li></ul>
  9. 9. Sample Letter Three <ul><li>Re: Creditor Company Your Account # Balance: $ </li></ul><ul><li>Dear Debtor Contact: </li></ul><ul><li>It is unfortunate that you have created a situation that forces Creditor Company to demand payment on your past due account; however, your lack of cooperation leaves them no other choice. </li></ul><ul><li>If you wish to avoid the costly and unpleasant process of being referred to a collection agency, Creditor Company must receive your payment in full within (15) fifteen days from the date of this letter. </li></ul><ul><li>Please understand that if this balance is not paid, you will be reported to all credit reporting agencies. </li></ul><ul><li>If this matter is not resolved, it will have a negative impact on your company’s business score and may ultimately restrict future lines of credit. </li></ul><ul><li>Sincerely, </li></ul><ul><li>Credit Management Association, Collection Division </li></ul><ul><li>Please remit payment to: </li></ul><ul><li>COMPANY CONTACT YOUR COMPANY ADDRESS CITY, STATE ZIP PHONE </li></ul>
  10. 10. Sample Letter Four <ul><li>Re: Creditor Company Your Account # Balance: $ </li></ul><ul><li>FINAL DEMAND FOR PAYMENT </li></ul><ul><li>Despite our efforts to resolve your past due account, payment on your account has not been forthcoming. As such, we are now informing you that this is your FINAL NOTICE and last opportunity to make payment. </li></ul><ul><li>Unless we receive payment in the amount of $ within the next ten (10) business days of this letter, we will take additional collection action. </li></ul><ul><li>If this matter is not resolved, it will have a negative impact on your company’s business score and may ultimately restrict future lines of credit. </li></ul><ul><li>Understand that if this balance is not paid, you will be reported to all credit reporting agencies. Additionally, this may ultimately have a negative impact on your business credit score which will affect your company’s business line of credit. </li></ul><ul><li>Sincerely, </li></ul><ul><li>Credit Management Association, Collection Division </li></ul><ul><li>Please remit payment to: </li></ul><ul><li>COMPANY CONTACT YOUR COMPANY ADDRESS CITY, STATE ZIP PHONE </li></ul>
  11. 11. Sample Excel File Cust# Customer Name Contact Name Amount Address Line1 City State Postal Phone 3E+05 CUSTOMER NAME contact Name 3,375.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contract Name 120.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 246.11 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 125.00 ADDRESS CITY STATE postal phone 21787 CUSTOMER NAME contact Name 7,944.00 ADDRESS CITY STATE postal phone 50174 CUSTOMER NAME contact Name 2,550.00 ADDRESS CITY STATE postal phone 3E+05 CUSTOMER NAME contact Name 5,690.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contract Name 3,310.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 3,310.00 ADDRESS CITY STATE postal phone
  12. 12. Excel File 2 Cust# Customer Name Contact Name Amount Address Line1 City State Postal Phone 3E+05 CUSTOMER NAME contact Name 3,375.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contract Name 120.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 246.11 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 125.00 ADDRESS CITY STATE postal phone 21787 CUSTOMER NAME contact Name 7,944.00 ADDRESS CITY STATE postal phone 50174 CUSTOMER NAME contact Name 2,550.00 ADDRESS CITY STATE postal phone 3E+05 CUSTOMER NAME contact Name 5,690.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contract Name 3,310.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 3,310.00 ADDRESS CITY STATE postal phone
  13. 13. Excel File 3 Cust# Customer Name Contact Name Amount Address Line1 City State Postal Phone 3E+05 CUSTOMER NAME contact Name 3,375.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contract Name 120.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 246.11 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 125.00 ADDRESS CITY STATE postal phone 21787 CUSTOMER NAME contact Name 7,944.00 ADDRESS CITY STATE postal phone 50174 CUSTOMER NAME contact Name 2,550.00 ADDRESS CITY STATE postal phone 3E+05 CUSTOMER NAME contact Name 5,690.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contract Name 3,310.00 ADDRESS CITY STATE postal phone 4E+05 CUSTOMER NAME contact Name 3,310.00 ADDRESS CITY STATE postal phone
  14. 14. ACCEL – erating your payments has never been easier!
  15. 15. ACCEL – erating your payments has never been easier!
  16. 16. ACCEL – erating your payments has never been easier!
  17. 17. ACCEL – erating your payments has never been easier!
  18. 18. ACCEL – erating your payments has never been easier!
  19. 19. ACCEL – erating your payments has never been easier!
  20. 20. What is a 10-Day Demand and When Should I Use It? <ul><li>Issues one letter to your customer asking for remittance within 10 days </li></ul><ul><li>Automatically rolls over accounts after 10 days into immediate collection </li></ul>For accounts that need a harder push , this CMA service:
  21. 21. When Should I Place an Account for Immediate Collection? <ul><li>Payment trend is slowing with your company and others </li></ul><ul><li>Your customer is not responding to letters or calls </li></ul><ul><li>Your customer has stopped buying from you </li></ul><ul><li>An account is beyond 90 days </li></ul>
  22. 22. We Benefit From Your Success All recovery fees are contingent upon collection—we don’t get paid until you do.
  23. 23. Tailored Approach Soft Sell: Designed to help you maintain your relationships with customers Hard “Tell”: More forceful —customers know you won’t take no for an answer Tailored Approach: Our experienced collectors can provide a tailored strategy between the two extremes
  24. 24. CMA Information Advantage Exclusive trade data from CMA’s 65 industry credit groups CMA Collectors have direct and instant access to: ChoicePoint reports (asset & corporate searches) Trade data from all 50 NACM Affiliates Credit reporting from D&B and Experian
  25. 25. CMA Collectors have years of tracing experience, they are trained to find the most valuable information.
  26. 33. WIN-WIN FOR YOU! <ul><li>Your account will be collected, or you and your company will be protected by performing due diligence before claiming a write-off. </li></ul>
  27. 34. How to get started <ul><li>Identify the accounts that are potential year-end bad debt write-offs. </li></ul><ul><li>Place them with CMA Collection Division. </li></ul><ul><li>CMA will Trace any skipped accounts, and look for assets on accounts where you have a judgment. </li></ul><ul><li>CMA will collect on as many accounts as possible. For those we can not collect on, you will receive a closing report that will satisfy the due diligence requirements for a write-off according to Sarbanes-Oxley. </li></ul>
  28. 35. anscers.com 24-Hour Online Account Access <ul><li>Place accounts online quickly and conveniently </li></ul><ul><li>Access account information and track claims status online— anywhere, anytime </li></ul><ul><li>Claims data can be pasted into any spreadsheet program for fast, efficient reporting </li></ul>
  29. 36. Debtor Database Test When you place claims online with CMA, you can search our comprehensive Debtor Database
  30. 37. Collection Placement Form anscers already knows who you are… And the debtor’s information is populated automatically, so it’s faster and easier to place multiple claims online
  31. 38. Upload Documents Upload your supporting documentation electronically right from your own computer.
  32. 39. Viewing Account Status Use anscers to access your commercial collection accounts CMA’s Collection Database lets you track the status of all your accounts
  33. 40. We Are A Full Service Collection Agency <ul><li>National and International Debt Recovery </li></ul><ul><li>Legal Referral Service </li></ul><ul><li>NSF Check Service </li></ul><ul><li>Mechanics Lien Foreclosure Service </li></ul><ul><li>Debtor Skip Tracing </li></ul>CMA continues to aid in your collection efforts with :
  34. 41. CMA’s Unique Advantages <ul><li>Is one of the few CA agencies that offers online access </li></ul><ul><li>Is bonded —your recovered funds are protected </li></ul><ul><li>Is one of only 14 California members of the Collection Agency section of the CLLA </li></ul><ul><li>Uses bonded collection attorneys for a greater level of protection </li></ul>Other agencies can’t compete , because CMA:
  35. 42. The Online Advantage <ul><li>Free Collection Seminars and Webinars </li></ul><ul><li>Onsite staff training </li></ul><ul><li>Collection Tips and Techniques in CMA’s exclusive Encyclopedia of Credit </li></ul><ul><li>Online Community Bulletin Board for exchanging information with other credit professionals </li></ul>Ask yourself whether your collection agency can offer:
  36. 43. CMA Business Credit Services CMA is the largest member affiliate of NACM (National Association of Credit Management) Business Services Benefit: A/R Personnel, Credit Managers, Controllers, Chief Financial Officers, Business Owners <ul><li>Commercial Collection </li></ul><ul><li>Credit Reporting </li></ul><ul><li>Industry Credit Groups </li></ul><ul><li>Construction Form Filing </li></ul><ul><li>Credit Education </li></ul><ul><li>Employment Services </li></ul><ul><li>Auction Services </li></ul><ul><li>Adjustment Bureau/Business Insolvencies </li></ul>Over 100 Years in the Business Credit Industry
  37. 44. Mechanics Lien Foreclosure <ul><li>Hire an attorney to Foreclose at $300.00 per hour. </li></ul><ul><li>The process can take up to 2 years </li></ul><ul><li>The upfront cost of hiring an attorney can be very expensive and the total cost unknown until the foreclosure is finalized. </li></ul><ul><li>CMA Foreclosure Fee is 35% of whatever is collected, and $850 foreclosure fee. </li></ul><ul><li>CMA uses Attorney’s that specialize in the Construction Industry. </li></ul><ul><li>Total cost known upfront 35% of what is collected, no surprises. </li></ul>Do you file Mechanics Liens? CMA’s Foreclosure Solution Typical Foreclosure Solution
  38. 45. Thank your for your time and business, Raul Mendoza Collection A/E Specialist (800) 541-2622 Ext. 125 (818) 972-5302 Fax [email_address] Paul Guillen Administrative Collection Associate (800) 541-2622 Ext. 166 (818) 972-5302 Fax [email_address]

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