January 8, 2015

Transportation Debt Collection

Transportation is a part of business.  How do you get your product to the right place at the right time?  There are many options to use for transportation and not all are equal.  A big problem that many shippers run into is not being paid on time.

Shippers move items from point a to point b.  The items are not theirs, but are shipped by companies and individuals who agree to pay the shipper for their services.  The average consumer has to pay for these services beforehand and is not able to pay on credit.  The larger volume shippers are able to ship on credit because they represent a larger portion of a shipper’s business.

Transportation debt collection is necessary for businesses when one of these large customers does not pay for their shipping services.  What makes things interesting is when this involves international shipping and the parties are from different countries.  Laws change as you cross over border lines and this makes collecting transportation debts a challenging process.  Whether this involves a cargo ship or cargo airline, the challenge is finding out who is on the hook for the unpaid funds.

A good transportation collection agency will be able to track down these people and motivate them to pay.  What makes collecting transportation debts difficult, is that not every country has the same laws as the United States.  It is much easier for a debtor to hide behind country lines.  Phone service and means of contacting the debtor may not be as reliable.  So how do you collect an international transportation debt?  The best thing to do is to turn the account over to a specialized debt collection agency with forensic corporate debt collection capabilities.  This will give you the best chance in collecting the overdue debt.  You can try to collect the debt yourself, but when you cross international border lines the complications grow exponentially and it is best to let a true professional organization handle the claim.

August 17, 2014

Choosing a Transportation Collection Agency

Transportation Collection Agency

Transportation Collection Agency

If you are in the transportation industry, then you undoubtedly have outstanding accounts.  How do you choose the right collection agency for your transportation specific industry?  Do you feel comfortable going with a traditional debt collection business that does not know the transportation laws?

Transportation is unique segment of the economy with many nuances in the legal system.  A traditional collection firm will not know these laws and will this collect at a lower rate, if they are able to collect at all.  So how do you know if a collection agency knows your industry?  The best thing to do is call them up and interview them.  If they do not understand what you are talking about or are not able to match you with the transportation lingo, then that is a tell-tale sign that you need to continue looking.

You know your business and industry better than anyone, so use your instincts to tell you if a debt collection firm is the right fit.  You want a collection agency that is as professional and knowledgeable as your company.  If you settle for a company that does not meet your standards, you will regret this later.  A good, professional transportation collection agency will help you collect your outstanding transportation debt and retain your customers.  There are many second rate collection agencies, and everyone knows the stereo typical strong arm tactics that they use.  However, when you choose the right transportation collection agency, they do not need to use these.  They use the legal system to leverage your accounts and get them collected.  If you are not using a transportation specific collection firm, then you may need to start the process of selecting one.

Transportation debt is difficult to collect, because the debtors know the industry and the laws.  If you use a transportation debt collection firm that can use these same laws as leverage against the debtor, then you will be much more satisfied with the results.  Take the time to interview and select the right transportation collection business for your company.

April 6, 2013

Debt Collection and the Power of Urgency

When debt collection is performed with a sense of urgency, then the chances of actually recovering the bad account increase exponentially.  There are many reasons for this, but let us analyze a few of these reasons.

  1. Age of the File – The age of a bad account actually plays a huge part in whether it is recoverable.  Why is this you ask?  As we all have witnessed, businesses can go bankrupt seemingly overnight.  They can also change their number or move locations, making it harder to track them down.  Management changes and they may not have any idea about the debt.  Some businesses keep bad books too, so the older a file is the harder it is to track down the invoices to prove that they actually owe the money.  Needless to say, the sooner you can act on a file, the better off you are.
  2. Motivating the Debtor – If you call the debtor and have no sense of urgency, then you are unlikely to inspire them to repay the debt.  If you call up and light a fire under the debtor and instill a strong sense of urgency, then you can turn the tide with the debtor.  This has been proven time and again in our business.  When we call and set firm deadlines with the debtor, we are able to recoup your monies at a substantially higher rate than without deadlines and urgency.

These are 2 of the main reasons to act with urgency and a sense of expediency when implementing your debt collection tactics.  Otherwise, you will seldom collect and be sitting there with a pile of old debts, that could have been recovered.



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