Debt Recovery

 

Patients requiring emergency treatment or ambulance services often see their financial condition deteriorate very quickly because of large medical bills that follow after things settle.

The biggest mistake which most ambulance services make is relying on their own accounting staff to send reminder invoices or make calls to patients, which are quite ineffective if a patient does not settle his bill within two months. Such patients are likely piling up additional medical bills. Not transferring such accounts within 2-3 months to a professional medical debt collection agency can be a huge mistake that many emergency care service providers make.

Need a Collection Agency for unpaid Ambulance Service bills? Serving Nationwide: Contact us

Sending low-cost Collection Demands through a collection agency once an ambulance bill has been due for over 60-90 days can tremendously reduce delinquencies and improve cash flow. Shifting to more intensive collection efforts like “Collection Calls” and “Legal Action” is recommended after a patient has not paid for more than 180 days. In most cases, patients will clear bills during the Collection Letters service itself because they very well know that Collection Agencies will soon start making calls or sue the debtor in court if bills are not paid quickly. It is never too late to hire a collection agency that has expert debt collectors specifically for the healthcare industry.

Every year, about 240 million people call 9-1-1 in the U.S. For most of these calls, an ambulance is dispatched to the scene in order to provide immediate medical attention. Patients and medical professionals alike are indebted to these services, which means that they should be paid appropriately and on time. But do you know how ambulance services collect patient payments?

Yes, the billing company has a right to send the case over to a collection agency. If the patient is unable to pay at once then it’s better to carve out a payment plan with him.

The process is relatively simple and strategic, and the job is usually assigned to an EMS bill company. However, not all billing companies are concerned about timelines. Neglecting to send out billing information for services rendered by EMS professionals hurts the response team, the hospital, the patient, and even the taxpayers. That’s why it’s vital to ensure that your billing or collection agency is following these three steps for collecting patient payments for ambulance services.

Step 1. Double Check The Bill

Ensuring that your patients are receiving the appropriate bill is going to save time and hassle on everyone’s end. For this to happen, your billing company needs to check and double-check the status of the remaining bill after it’s been through the initial steps.

Insurance Payment

A reliable company will do some background checks to make sure that the insurance company has paid out the proper amount. If the numbers are wrong, it’s your patient who is going to get frustrated, and it’s you who they will be calling to demand an explanation. A hands-on billing company will make sure that the distressed patient is at least getting the correct billing information.

Spelling, Contact, and Coding

Another thing that should be checked is for any typing errors within the bill. A seemingly minor error can lead to denials or claims, meaning that the 911 provider will be delayed in receiving payment (if they get it at all). Your billing company should be diligent in making sure all information is correct before sending it out to the patient.

Step 2. Five Day Bill Day

Speaking of sending out the bill, ambulance services can collect patient payments at any time. Ideally, however, your billing company should have the bill squared away with the proper information within five days. If you’re working with a company that is continuously sending out patient bills for ambulance services weeks or months after the event, you should consider switching agencies.

Step 3. Follow-Up

Once the bill has been sent out to the patient, it’s up to your EMS billing to follow up on payments. Most patients aren’t likely to pay this bill as soon as they receive it. However, your company’s standard procedure should include follow-ups. This shouldn’t be a problem if they have a fully-geared accounts receivable report (that they update regularly).

Here is a list of follow-up procedures your company should be providing:

Bill Received: Confirmation and date that bill was sent out and date patient should have received it.

Follow-Up Communication: Every call, email, or reminder bill that your company has issued to the patients as a reminder for payment (AR report).

Claims and Denial Listings: Any claim or denials in the process that has caused a delay in payment of the ambulance services.

Days To Payment: Medicare reimbursement should take no longer than 14 days, while commercial insurance companies should take less than 45 days. If their estimated time of payment from insurance providers exceeds those numbers, it’s likely that their follow-up process needs some work.

When deciding to work with an EMS billing company, you need to set strict expectations. Ask to see an example of the AR reports, asking about payment estimates, and also be sure to enquire about their collection percentages. And remember, if their services seem too good to be true, it probably is.

Still no luck recovering your money?

When a patient has failed to pay for 90 days despite all your efforts, hire a Debt Collection Agency without wasting more time.

Collection Letters Service of Collection Agency

Upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service of Collection Agency

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit is recommended by the attorney.

If you need a Collection Agency with experience in your area: Contact us

Supply Chains Are Moving. Don’t Let Your Cash Flow Stall.

In the manufacturing sector, “Net 30” is rarely Net 30 anymore. With supply chain disruptions and rising material costs, clients are treating your invoices like interest-free loans.

You aren’t just selling a product; you are financing the raw materials, the labor, and the machine time. When a client delays a $50,000 payment, they are freezing your ability to restock inventory or repair a critical CNC machine.

The “Goodwill” Trap in B2B Collections

Manufacturers often hesitate to collect because of “the relationship.” You worry that a collection letter will offend a long-term distributor or jeopardizing a future contract.

• The Reality: A client who values the relationship pays you on time. A client who ghosts you is managing their cash flow at your expense.

Nexa specializes in B2B Manufacturing Debt Recovery. We understand the difference between a disputed custom order and a simple refusal to pay. We help you enforce your terms without destroying your supply chain relationships.

The “Zero-Interest” Loan You Didn’t Approve

According to 2025 industry data, the average Days Sales Outstanding (DSO) in manufacturing has crept up to 56 days.

• The Cost: If you operate on a 10% margin, a $20,000 bad debt requires you to generate $200,000 in new sales just to break even.

• The Fix: You cannot afford to out-sell bad debt. You must collect it.

Why Nexa is the CFO’s Choice:

• We Speak “UCC”: We understand the leverage of Uniform Commercial Code (UCC-1) filings and how to use them to secure your position against other creditors.

• Early Intervention: Our Step 2 Flat-Fee Service ($15/account) is perfect for early-stage delinquency (45-60 days). It sends a professional “shot across the bow” that prioritizes your invoice over others.

• Protect Your Name: We know your reputation in the industry is vital. Our agents (rated 4.85/5.0) act as professional mediators, not “junkyard dogs.”

A Recovery Workflow Built for Industry

We don’t treat a B2B manufacturing debt like a medical bill. Our process is designed for corporate finance departments.

Phase 1: The “Distributor Nudge” (Early Intervention)

• Best For: Long-term clients who are “slow-walking” payments or claiming “check run” delays.

• The Strategy: We deploy Step 2 (Flat-Fee). We send official third-party demands that reference your PO numbers and invoice dates. This signals that the account has been escalated to a professional firm.

• The Result: The client’s AP department flags your invoice for immediate payment to avoid a credit mark. You keep 100% of the money. This is why we emphasize: Place accounts earlier (Day 60-90) for maximum recovery.

Phase 2: The “Contract Enforcement” (Late Stage)

• Best For: Clients who have gone silent, custom order disputes, or companies showing signs of insolvency.

• The Strategy: We move to Step 3 (Contingency). We use commercial skip-tracing to find the owners. We report the commercial debt to credit bureaus (Experian Business, Dun & Bradstreet), which threatens their ability to get financing elsewhere.

• The Result: We leverage the threat of credit damage or legal action to force a settlement. We charge 20%-40%, but only if we succeed.

Real World Results: Recovering Industrial Revenue

Scenario A: The Custom Fabricator (Metalworks)

• The Issue: A metal fabrication shop produced a $35,000 custom order for an automotive supplier. The supplier accepted the goods but stalled payment for 120 days, citing “cash flow tightness.”

• The Fix: We ran a Litigious Check and found the supplier had pending lawsuits from other vendors. We moved immediately to Step 3, serving a demand that threatened a UCC lien enforcement.

• The Outcome: The supplier, fearing a freeze on their own credit lines, wired the full balance within 5 business days.

Scenario B: The Food Processor (Packaging)

• The Issue: A packaging manufacturer was owed $12,000 by a regional food brand. The brand claimed “quality issues” only after the invoice was 90 days past due—a common stalling tactic.

• The Fix: We requested the signed Proof of Delivery (POD) and the initial QC acceptance report. We sent these with a formal legal demand letter.

• The Outcome: Faced with documented proof that destroyed their dispute, the debtor agreed to a 3-month payment plan. The manufacturer recovered the funds and kept the client on “Pre-Pay” terms for future orders.

FAQ: B2B Debt Recovery

Q: Will sending a client to collections ruin the relationship?

A: Paradoxically, it often saves it. Financial ambiguity ruins relationships. By professionally enforcing your terms, you reset the dynamic. Once the debt is paid, you can resume business on clear terms (e.g., credit limits or deposits).

Q: Can you help if the debtor is in another state?

A: Yes. Manufacturing supply chains are global. We are licensed in all 50 states, so if you are in Ohio but your debtor is in Texas, we can pursue them seamlessly.

Q: What if they have filed for Bankruptcy?

A: We offer a Free Bankruptcy Check before we start. If they have already filed, we will advise you on whether to file a Proof of Claim or write it off, saving you time and legal fees.

Stop Financing Your Customers

Your margins are for your growth, not your client’s float. Secure your revenue with a partner that understands the mechanics of manufacturing debt.

Click here to Contact Us and start your recovery campaign.

 

The challenges that businesses face are numerous, but few are as aggravating as customers that don’t pay their bills. This violates the basic quid pro quo that commerce is founded on. You provide a product or service, and in return, your customers agree to pay for it.

When they don’t, business owners must decide whether to pursue the debts themselves or pass the job off to a third-party collection agency. Both options have their positives and negatives. This article will focus on the pros and cons of hiring a debt collector instead of doing the difficult work of collecting yourself.

Pros in Favor of Collection Agencies

Convincing delinquent accounts to settle their balances can take quite a lot of time and effort. These are the reasons why businesses should let collection agencies take the wheel.

Collection Agency is the “Bad Guy”, you are not

By involving a professional debt collector, you are not directly involved in the collections activity. You can just maintain that it is the company policy to forward accounts for collections, now things are out of your hands. They should contact the agency directly for settling the balance.  

Collection laws

Welcome to the United States, there are complex and countless laws involved in attempting to collect your own money. Collection agencies are well versed with federal and state debt collection laws therefore they minimize the risk of getting sued back by the debtor.

Debtors are far more likely to pay when a Collection Agency is involved

Debt Collectors are experts in collecting debt, after all that is what they do all day long. They have access to several tools and services to effectively and legally recover your money. Debtors understand that giving false excuses or simply relocating to a new address is ineffective with a collection agency. It is nearly impossible to match the cost and recovery rates of a collection agency.

Businesses Have Better Things to Do

You have a business to run. Time spent drafting and sending collection letters, making phone calls, and keeping track of account statuses pulls personnel away from their normal duties. Depending on the volume of potentially bad debt you’re carrying, the amount of time your business can lose is significant.

It’s certainly worth attempting to collect funds owed before they become considerably past due. But once a customer has demonstrated a reticence to pay, further efforts on your part are likely to be unsuccessful.

Moving these delinquent accounts to a collection agency allows you to focus on finding new customers and on generating new income while the agency attempts to recover funds you likely can’t.

Collection Agencies Are Better Equipped for the Job

Collection agencies have a number of tools available to them that you don’t. Plus they have the benefit of single-minded focus. They don’t have to run your business while trying to collect debts.  Collecting debt is all they do, so they’re able to dedicate themselves to the task.

If you sell widgets online, your skills lie in widget sales and online commerce. Debt collection isn’t likely something you’re trained in or something that you know how to do well. But that is the primary focus for collection agencies, and so they have a significant advantage over you when attempting to recover the delinquent debt.

You just addressed the Collection Problems that every business faces

Most companies do not have dedicated people to handle overdue accounts receivable. Your existing employees are neither effective nor organized to handle the debt collection. Hiring a collection agency will help you to address even those accounts with low balances. Regardless you have high volume of unpaid invoices or just a few accounts, a collection agency will continue to work for you. You will be better advised on accounts with severe delinquencies, litigious customers, or when the debtors are difficult to locate. Hiring a collection agency will leave your employees less frustrated since internal staff hates doing debt collection.

Collection Services Only Cost You Money If They’re Successful

Most reputable collection agencies charge using performance-based contracts. They take a percentage of any monies recovered, which means you’re not risking anything by seeking their services. If they collect nothing from your delinquent accounts, you pay them nothing.

On the other hand, if they’re successful, you’ll pay a set percentage of the total funds recovered. But these are funds you likely would not have recovered on your own, and a percentage is better than recovering nothing at all.

Although most collection agencies offer low-cost & fixed fees based Collection Letters service as well which are extremely effective and recommended for accounts less than 120 days.

Other important benefits

Collection agencies can collect debt across all 50 states, in both Spanish and English. They also have a national network of attorneys who can assist if there is a need to take the debtor to the court. They will offer several payment options to the debtor and can even place the account to be paid off in installments. 

Cons Against Collection Agencies

Like any business, collection agencies aren’t right for every customer. Here are a few things to keep in mind when considering whether to hire a debt collector.

They Aren’t Cheap

Collection agencies charge a fairly high percentage for their services, often between 25% and 50% of the funds recovered, depending on the type of debt. But this is to be expected.

Delinquent debtors are typically transferred to a Collection Agency after 90 days of non-payment and the possibility of recovering anything from these accounts through the efforts of in-house employees is nearly zero. Money collected through collection agencies is cash you may have not got otherwise. 

Even with their expertise, a large amount of debt remains unrecoverable without invoking severe, and expensive legal actions. So collection agencies must support their businesses with the funds they are able to recover. It’s important to remember that without the help of a collection agency nearly all delinquent debt remains unrecoverable. Paying 50% on recovered funds is better than the alternative.

Federal laws restrict what a Collection Agency can do 

There are many debt collection laws applicable when Collection Agencies are trying to recover money from a debtor. A simple example is  “30-day” dispute period during which a debtor can tell a collection agency to prove he indeed owes the debt, or stop contacting him. The dispute period does not apply to the original creditor. Many states put original creditor and collection agency in the same bucket, which means the collection laws apply to either one trying to recover money from the debtor.

Slightly Higher Possibility of Sour Customer Relationships

Some customers just get agitated due to the mere fact that the account has been transferred to a collection agency when they themself have failed to fulfill the payment obligation despite your repeated efforts and reminders from your in-house accounting/receivables department. Do you even bother so much anyway to maintain a good relationship with these customers?

If you choose a collection agency that’s overly aggressive or one that employs unsavory methods for collecting on your accounts, those customers affected will likely think ill of you by the end of the process.

This is less than ideal because many customer accounts become delinquent due to circumstances out of your customer’s control. They often want to pay, but can’t. When their financial situations improve they could revert to being good, paying customers. But this is less likely to happen if a bad collection agency ruins the relationship.

Hire a Trustworthy, Well-Reviewed Agency

The negatives associated with collection agencies can be avoided by checking references and reviews for the agencies you’re considering to find one that employs industry best-practices, works to maintain healthy customer relationships, and take a fair percentage in exchange for their services.

The unfortunate reality is that attempting to collect delinquent accounts on your own is likely to net you nothing but heartache and wasted time. Trusting these accounts to an esteemed collection agency significantly improves your chances of recovering funds, and something is always better than nothing.

If you need a cost-effective collection agency that utilizes an amicable, diplomatic yet firm approach to recover your money then Contact us.

If your business has been writing off bad debts without involving a Collection Agency, you have simply ignored the best route towards recovering your money or at least portion of it.

8 Reasons why some Small Business do not hire a Collection Agency proactively

1. They have never used one before and are unsure what a Collection Agency can do for them.

( Fact: Businesses need to hire a good collection agency to see the difference. A Collection Agency will undoubtedly help in improving cash flow of your business.)

2. Many Small Businesses feel that involving a Collection Agency can be a bit of a hassle.

( Fact: Collection Agencies take away all the stress related to non-payment, and they are quite easy to use. Collection agencies have been around for decades, and your in-house employees cannot match their efficiency and recovery rates.).

3. Some businesses just accept these as losses and try to offset by getting new orders.

( Fact: Recovering money from accounts receivable is more critical than new orders. It also discourages more customers from not paying you.)

4. People in Accounting and Receivables department are unable to convince the Owners or CFO’s to make a change in company policy and assign accounts over 90 days past-due to a collection agency.

( Read this: Is Management Ready to Hire a Collections Agency? )

5. They simply do not know which collection agency to hire.

( Contact us, and we will connect you with a good collection agency at no cost to you)

6. Since collection agencies charge contingency fees, many business owners are reluctant to share a portion (recovery fees) of the amount collected with a collection agency.

( Fact: Many businesses keep sitting/waiting on these accounts and eventually do not recover a penny from them. A 100% loss. No agency will recover from 100% of the accounts submitted, but they will likely recover a lot more money from your bad debts which are on the verge of being written off anyway.).

7. Many businesses do not know how long should they wait before involving a Collection Agency.

( Fact: Earlier you transfer, the better it is. It is recommended to transfer accounts after 60-90 days of non-payment. Submitting accounts less than 1 year is also acceptable. However, accounts older than 3 years old generally result in no recovery.)

8. A Collection Agency will spoil the business relationship with my customers.

( Fact: All good collection agencies pursue a diplomatic, amicable yet a firm approach towards collections. Collection agencies cannot threaten or apply undue pressure on debtors as it is against the FDCPA collections law. Collection Agency will attempt to recover money by working with the debtor, rather than working against them. All recoveries are attempted to preserve business-customer relationship.)

To attempt the recovery of bad debts previously written off, they should be assigned to a collection agency without further delay.

Financial businesses of all sizes frequently struggle with their accounts receivable, trying to recover money from those 2%-3% accounts who just refuse to pay on time, even after repeated followups. This is when a financial collection agency can be extremely helpful to recover money from unpaid bills.

Financial institutions often spend too much of their own time, resources and money chasing after these delinquent accounts then they are worth. After a few contacts, even the in-house employees feel helpless and frustrated since these borrowers refuse to budge, continue to give awkward excuses, start your ignoring calls and repeatedly break their promise to make payments on time. Some of them may even become unreachable or relocate to a new address unknown to you.

Writing off these accounts can result in a big financial hit for any business. These bad debts can either lower the profit margin of your company and in extreme cases, drag your income statements in red, and causing cash flow issues for your financial business.

Accounts which do not get resolved in the first 90 days, rarely get settled. If these accounts are not transferred to a Financial Collection Agency, the likely-hood of they ever getting resolved reduces by 10% every passing month.

Loans, mortgages, credit card debt, student loan, overdraft fees, returned checks and account fees are some of the most common debts incurred by financial businesses like Banks and Credit Unions. Some debts may be as low as $20 and others running into thousands of dollars. Borrowers can be individual consumers or business entities.

Summary of Financial Collection Agency’s Services

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls the debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

You must hire a financial collection agency which has extensive experience in both Consumer debt collection and commercial debt collection. They should ideally be licenced in all 50 states. Banks and Credit unions use collection agencies extensively.

If you need a cost-effective financial collection agency: Contact Us

It isn’t uncommon for people to have unpaid debt wind up at a Collection Agency. Sometimes they forget that they have an outstanding balance and other times, they simply don’t have the money to pay the lump sum.

If you are a business owner, you may have been forced to make the difficult decision to send your delinquent customer or a business partner to a debt collector.

Most B2C debt is transferred to a collection agency after 60-90 days of non-payment. Most B2B partners try to postpone making this move, but if they are dodging your requests for payments, you may have not have had any other choice. The question is, will this move ruin your business relationship?

Debt collectors are often met with a negative connotation. Your delinquent customer or a business partner probably won’t be happy to learn that you sent their balance to a collector. The good news is, debt collectors use a diplomatic approach specifically so that your business relationship remains in good standing. They understand the importance of business relationships and work hard to preserve it. They will work with the debtor in order to consolidate or get rid of their debt entirely.

To get a full grasp of this concept, let’s look at how a collection agency works in order to determine how it affects your business relationship.

Understanding How Debt Collectors Work

If you decide to send someone’s unpaid balance to a collection agency, they will be immediately notified; usually via phone call or a collection letter. These contacts are often met with apprehension because being sent to collections can possibly effect the debtor’s credit score if the creditor has requested the collection agency to report the debt to the credit bureaus. And, naturally, this can ruin their chances of getting a car, a house, or a business loan.

When Debt Is Sent To Collections

It’s difficult to know when it is time to write off the unpaid debt as a loss. If you have been working with your business partner for some time, you may wait for months or even years before you decide to send their debt to collections. However the chances of recovering the past due amount go down by about 10% each month. The longer you wait, higher the chances are that you will never recover your money.

There is no set dollar amount or time frame that depicts when it’s time to write off unpaid balances. If you get the impression that your partner isn’t going to pay off their capital or they haven’t made an effort to set up payments, you should absolutely cut your losses.

Debt can be sent to a collection agency 31 days past the due date, though many wait until after three to six months of nonpayment. It is recommended to use Debt Collection Letters after 60 days past due date. If the debt is over 120 days or more past due then go for the Collection Calls service.

How It Affects The Debtor’s Credit Score

Not everyone’s credit score is affected unless the original creditor instructs the collection agency to report the debt to the credit bureaus. Generally speaking, those with higher credit scores are often penalized more points than those who have a lower credit score. The amount owed will also determine how many points will be shaved off their credit score.

How A Collection Agency Will Approach Your Delinquent Customer or Business Partner

If someone owes you money, knowing how collection agencies approach debtors can help you rest easy about your decision. In the past, the tact of a debt collector was to make relentless phone calls demanding payment. And if you’re looking to maintain your business relationship, having put your partner in this situation is obviously going to cause some tension.

However, now with the Fair Debt Collection Practices Act (FDCPA), agencies use a more subdued approach when contacting your partner or associate.

Talk To Your Associate First

As the original creditor, you can only send someone to collections 31 days after the payment is past due. The best practice to maintain your business relationship is to talk with your associate first. Have a system in place to send out reminders that payment is due. This includes regular emails, phone calls, and other points of contact.

Approaching your associate about their late payment first can help preserve your relationship. This is recommended instead of sending them straight to collections without warning or notice of this action.

 The Fair Debt Collection Practices Act

This act was created once it had been made clear that, “Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.” Along with other reasoning established in this act, debt collectors may not be abusive or vexatious when approaching debtors.

Instead, collection agencies will approach your partner in an amicable way. They may even give guidance on setting up payments to their debt. With these practices, you can rest assured that sending someone’s debt to an agency should not ruin your business relationship. We only recommend notifying your business associate first and educate them on your impending decision to write off their debt. Once you’ve made your decision, the debt agency will take the reins to help settle the outstanding balance.

Conclusion

No Collection Agency can guarantee that your business relationship with the debtor will remain intact during the collection process. However, this article simply conveys you that all good collection agencies use diplomatic and an amicable way to collect a debt, rather than the common notion that debt collectors are intensive, abusive or threatening. This drastically ups the chances to retain your business relationship. If any agency uses threat tactics, it just violated the debt collection laws.