Faster, Kinder Approach Pays for Collection Firm

By Christine Snyder, Special to The Detroit News

It’s the side of doing business that owners don’t want to think about: what to do when a customer doesn’t pay.

Typically, businesses first do what they can themselves. If that doesn’t work, there are a few choices: Go to small claims court, which is time-consuming, and doesn’t guarantee payment, even if the case is won. They can write off the debt. But most hire an attorney or a collection agency.

“To go to the outside agencies or attorneys is typically a very costly thing,” says Matt Moskowitz, partner, American Profit Recovery. “They will spend anywhere from 33 to 50 percent of any money collected. Looking at it from their perspective — after six months of not having collected anything — 50 percent looks pretty good to them.”

American Profit Recovery, founded a year and a half ago by five partners with collection agency experience, offers a low-cost alternative. For one, they charge a flat rate, usually under $15 per account. And their resolution rate is 50 percent as opposed to the average agency’s 11 percent.

For this complete story, please visit Faster, Kinder Approach Pays for Collection Firm.