Debt Recovery

Being an avid golfer and working in the collection industry for the last 22 years, it wasn’t long enough that I started to find so many similarities between the two.

1. Practice and Patience

Like Golf, debt collection is an art that requires sufficient time to learn and improve the game. Then there are days when we have excellent collection results and others when nothing seems to be working, precisely similar to the day-to-day fluctuations we experience in golf.

Keep your patience, continue to introspect, and stay focused. Put up a smile, clear your head, and start your next call with a positive attitude.

Do you need a Collection Agency for your Golf Course? Contact Us Golf courses have huge operating expenses. Their accounts receivables may include recovery from contractors (pavers, cart repairers, etc), credit card reversals, unpaid membership fees, damages and more. You must keep a signed contract/receipt/invoice to support the debt.

2. Play Smarter, Not Harder:

Apply too much force in the game of golf, and your shots start to go haywire. A successful debt collector needs to have an acute presence of mind. He should know how to handle the call based on the responses they get from the debtor and somehow make him pay. Smart and straightforward tactics work far better than brute force and anger.

Best collection rates in the industry are achieved with good acumen and the presence of mind, not by simply pushing too hard or blindly sticking to a script that your boss has given you.

3. Never use a Driver for shorter shots.

When your ball is 90-120 yards away from the hole, we use Irons, not the Driver. Suggesting the right product to the client is very important.

Low-cost collection letters are more suitable for debts that are no more than one year old. Collection calls are suitable for accounts over that limit and Legal suit as a last resort. Suggesting the most optimum solution to your client will lower their collection cost,  and make them stick with your agency for a long time.

4. Concentration:

Before starting a collections call, remove your mind from those daily “Breaking News”, forget about your social media conversations, and put the phone aside. Everything that can potentially distract you during your conversation with the debtor.  Exactly what my golf trainer says … Stay focused – razor sharp.

5. Control of Emotions

Debtors deal with crappy calls all day long. It is crucial to control your emotions, most importantly your anger. Just like in golf, the game is all but over once you are agitated.

6. Short Game is more important:

Every collection call need not be a 10+ minute conversation, probably only in those cases where the outstanding debt is too high. Time is money for debt collectors. It is important to remember that you are not working to hear long stories of your debtors but to collect debt in optimum time.

The idea is to reach the target in a minimum number of shots. Similarly, in Debt Collections, the idea is to recover maximum money with the minimum number of contacts.

7. Buy a good golf set: Not the cheapest one, not the costliest one

You can buy a bargain golf set for as low as $200. But most of us know they are not too good. They will likely spoil your game. There is a reason most people buy branded golf sets like TaylorMade, Callaway, Titleist, Ping etc. These golf sets have the appropriate design, metal and technology to get the best shots. A golfer does not need to break the bank, but a decent branded set will come between $500 to $1000.  This will improve your game and accuracy and last you for many years.

Similarly, never go for a collection agency just because it has the lowest fees. Good collection agencies invest a lot of quality manpower, technology, and services to provide maximum returns. So even if you have to pay 10%-15% extra for a better collection agency, go for it. Higher returns will make that little extra investment/fee look minuscule.

If you are looking for a good collection agency: Contact Us

 

Why Smart Collection Letters Are the “Secret Weapon” of Debt Recovery

In a digital-first world, it is easy to assume that an email or a text message is the fastest way to get paid. While those tools have their place, the physical collection letter remains the heavyweight champion of debt recovery.

Why? Because a professional collection letter is more than just a piece of paper. It is a legal instrument, a psychological trigger, and—when done correctly—a data-driven tool that locates debtors who are trying to hide.

Note: Consumers can easily use technology to block debt collector’s phone calls, but they cannot block the US Postal Service from delivering mail to their physical address. This ensures your demand letters bypass digital filters and establish the mandatory “paper trail” required for legal notifications and future escalation.

Here is why upgrading to a professional third-party letter service is the most cost-effective move you can make for your bottom line.

1. The Power of “Smarter” Mail (Data Scrubbing)

One of the biggest reasons internal billing fails is that you are often mailing invoices to a “dead” address or pursuing a debtor who legally cannot pay.

We don’t just stuff envelopes; we run your accounts through a sophisticated data scrub before a single stamp is used. This “Smarter Mail” approach includes:

• Change of Address (NCOA) Scrub: People move frequently, often to avoid debt. We run your list against the USPS National Change of Address database. If your debtor has moved, we find their new address automatically, ensuring your demand lands in their hands, not an empty mailbox.

• Bankruptcy Screening: Trying to collect from a debtor who has filed for bankruptcy is not just futile; it’s illegal. It violates the “Automatic Stay” and can lead to severe fines. We screen for active bankruptcy filings before we mail, saving you the cost of the letter and the risk of a federal lawsuit.

• Litigious Defaulter Check: Some professional debtors make a living by trapping businesses into technical violations of collection laws and then suing them. We identify these habitual litigants upfront, allowing us to handle their accounts with extreme caution or advise you to close the file to protect your business.

2. The Psychological Shift: From “Vendor” to “Creditor”

When a customer sees an envelope from your business, they see a familiar vendor they can negotiate with or ignore. When they see a colored envelope from a third-party agency, the psychological dynamic changes instantly.

• Breaking the Cycle: A third-party letter signals the end of the “service” phase and the beginning of the “recovery” phase. It creates a sense of urgency that a standard “Past Due” stamp simply cannot match.

• The “Paper Weight” Effect: An email can be deleted with a swipe. A physical letter sits on the kitchen counter or the CEO’s desk. It occupies physical space, serving as a tangible, nagging reminder that the debt is real and is not going away.

3. Compliance and the “Paper Trail”

In the event of a dispute or future litigation, documentation is everything.

• FDCPA Compliance: The Fair Debt Collection Practices Act requires specific disclosures (the “Validation Notice”) to be sent to consumers. Our letters are drafted by legal experts to ensure strict compliance, protecting your brand from liability.

• Proof of Diligence: If you eventually decide to sue a debtor (Step 4), you must prove you made every reasonable effort to collect. A series of documented, professional demand letters provides the court with irrefutable evidence of your due diligence.

4. By the Numbers: Why Print Performs

Data consistently shows that physical mail cuts through the digital noise.

• 100% Delivery Potential: Unlike emails which are often blocked by spam filters or buried in “Promotions” tabs, physical mail has a 100% deliverability rate to valid addresses.

• Higher Engagement: Studies show that direct mail has a significantly higher cognitive engagement rate than digital media. People spend more time reviewing a letter than they do scanning an email.

• 70% Resolution: When accounts are sent to us between 60 and 90 days past due, our flat-fee letter service resolves roughly 7 out of 10 accounts without ever needing to pay a contingency fee.

5. Stop Wasting Equity on High Fees

The old way of collecting—waiting 6 months and then handing over 50% of the debt to an agency—is a bad deal for you.

• The Flat-Fee Revolution: Our Step 1 & 2 service allows you to send these powerful, data-scrubbed letters for a fixed cost (e.g., $15 per account).

• Keep Your Money: If a $5,000 debt is paid after receiving our letter, you pay $15, not $2,000. You keep the equity where it belongs: in your business.

Providing Flat-Fee Services Nationwide Need a Debt Collection Agency? Contact Us

Take the Next Step

Stop sending invoices into the void. Use a system that cleans your data, protects your legal standing, and demands attention.

Click here to Contact Us and upgrade your recovery strategy today.

For most CPAs and tax preparers, the end of tax season brings a familiar, frustrating reality: the “collection tail.” While you’ve successfully navigated the latest tax code changes and met the April deadlines, a significant portion of your revenue remains locked in unpaid invoices.

The average cost for a simple 1040 with Schedule C is approximately $457, while corporate returns for S-Corps and Partnerships frequently start at $1,850. When these fees go unpaid, it isn’t just a nuisance; it’s a direct hit to your firm’s Days Sales Outstanding (DSO) and overall valuation. Statistics show that once an accounting invoice passes the 90-day mark, the probability of collecting it in full drops to roughly 69%.

However, the accounting industry faces a unique challenge. Unlike a traditional retailer, you cannot simply “repossess” a tax filing. You are bound by Treasury Circular 230, which mandates the prompt return of client records necessary for tax compliance, even if fees are unpaid. Furthermore, pursuing aggressive fee suits is cited by the AICPA as one of the leading triggers for defensive malpractice claims.

At NexaCollect, we provide a diplomatic, 50-state licensed solution that recovers your fees without triggering the “negligence” counterclaims that haunt firm partners.

Need a Collection Agency? Contact us

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The 4-Step “Waterfall” for Financial Professionals

Accounting firms require a structured, low-friction recovery system. Our phased approach is designed to function as an extension of your billing department, not a “heavy-handed” debt collector.

Step 1: The “Audit” Reminder (Fixed Fee ~$15)

This is our most popular tier for CPAs. We send professional reminders in your firm’s name.

• The Strategy: It frames the unpaid balance as a simple administrative oversight or a “missing document” issue.

• The Benefit: You keep 100% of the recovery. Because the contact comes from you, it preserves the “Trusted Advisor” relationship while securing the cash.

Step 2: Formal Agency Transfer (Fixed Fee ~$15)

If the client ignores the internal nudge, the account transitions to NexaCollect’s name. This signals to the client that the professional engagement has reached a formal billing impasse. This step often resolves “procrastinator” debtors who wait until the last possible second to prioritize their CPA’s bill.

Step 3: Contingency Recovery (40%)

For the most stubborn “slow-pays,” our specialists engage in intensive, call-based negotiations. We operate on a “No Recovery, No Fee” basis.

• Tactical Advantage: We handle the “service dissatisfaction” excuses that accountants hate to deal with, allowing you to focus on high-value advisory work.

Step 4: Legal Review & Escalation

For high-balance corporate fees, we provide attorney-vetted escalation. This ensures that if litigation is necessary, it is handled with the highest level of legal scrutiny to prevent any blowback to your firm’s license or reputation.

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Compliance as a Shield: Circular 230 & TCPA

Accountants are naturally risk-averse, and for good reason. A single TCPA (Telephone Consumer Protection Act) or FDCPA violation can cost thousands in fines.

NexaCollect is built on a foundation of Bulletproof Compliance:

• Circular 230 Literacy: We understand that while you can withhold “work products” (like a finished return you haven’t filed), you cannot withhold original client records. Our process ensures you stay on the right side of the Office of Professional Responsibility (OPR).

• Reputation Preservation: Our 4.85-star Google rating is the highest in the industry. We are often complimented by the debtors we collect from for our professionalism. This ensures your firm isn’t the subject of a 1-star review “revenge post.”

• Malpractice Avoidance: By using a diplomatic third party, you avoid the “angry confrontation” that often leads a client to invent a “negligence” claim to get out of paying their bill.

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The “Service Resolution” Template

Accountants often struggle to find the right words. Use this template during Step 1 to move the needle without losing the client.

Subject: Action Required: Finalizing Your [Year] Tax Engagement Dear [Client Name], In reviewing our files for the [Year] tax season, we noted that Invoice #[Number] for $[Amount] remains outstanding. We take great pride in our accuracy and the tax savings we’ve identified for you. If there is a question regarding your filing or if you require additional documentation to finalize your payment, please let us know immediately. Please remit payment via [Link] or contact our office by [Date] to ensure your account remains in good standing for the upcoming quarterly planning sessions. Sincerely, [Partner Name / Billing Dept]

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Why Wait for May 1st?

Accounting debt is highly seasonal. Invoices that go unpaid during the “crunch” months of February through April are significantly harder to collect once the client’s tax refund has been spent.

Don’t let your hard work become a tax write-off. With NexaCollect, you get the security of a 50-state license, the trust of a 4.85-star rating, and a process designed to protect your firm’s most valuable asset: its reputation.

Contact NexaCollect Today for a Confidential AR Review

In the media industry, your brand is built on trust and community presence. Whether you run a local weekly or a national digital magazine, the last thing you want is a reputation for being heavy-handed with your readers or your local advertisers.

However, the reality of publishing in 2026 is that margins are thinner than ever. Between “zombie” digital subscriptions with expired credit cards and local advertisers who ghost your sales reps after a three-month campaign, revenue leakage is likely costing your publication 15% to 20% of its annual profit.

Nexa provides a “Brand-Safe” recovery system specifically tuned for the publishing cycle. We protect your masthead’s reputation while ensuring you actually get paid for the space you’ve already filled.

Recover Your Media Revenue Today

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The Publishing Profit Gap (By the Numbers)

• $2,800: The average uncollected balance for a small-to-mid-sized local advertiser.

• 42%: The increase in recovery rates when an account is moved to a third-party partner before it hits 90 days.

• $15: The cost of our Step 1 Fixed-Fee service—less than the cost of your billing clerk spending half a day on the phone.

• 10-12%: The amount of subscription revenue lost annually due to “passive churn” (unresolved billing issues).

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The Nexa 4-Step Recovery Ladder

We handle two very different types of debt with two very different strategies:

Track A: High-Volume Subscriptions (Fixed Fee)

Chasing a $60 or $120 annual subscription internally is a losing game—the labor costs more than the debt.

• Step 1: We send professional, white-labeled “Account Reconciliation” notices.

• The Result: The reader pays you directly. The relationship stays intact, and you keep 100% of the money.

Track B: Advertising & Commercial Accounts (Contingency)

When a local business owes $5,000 for a print/digital spread and stops answering emails, it’s no longer a “billing error”—it’s a bad debt risk.

• Steps 2–4: Our specialized B2B mediators step in. We use professional skip-tracing and direct negotiation to secure the funds.

• The Result: You only pay us if we collect (No Recovery, No Fee). We focus on “Resolution Mediation” to keep the door open for future ad buys.

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Industry Laws & Compliance: Protecting Your Publication

Publishers face unique legal hurdles that generic agencies often overlook:

• FTC “Negative Option” Rule: The FTC is highly focused on how subscriptions are renewed and canceled. We ensure our recovery language matches the latest transparency requirements to protect you from “hidden fee” lawsuits.

• FDCPA & TCPA Compliance: We assume the regulatory risk. Our systems are hard-coded to follow “Time of Day” and “Frequency of Contact” rules, ensuring your publication is never associated with harassment.

• Digital Data Security: Our platform is secure and fully audited, ensuring that your subscriber lists remain confidential and protected.

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Recent Recovery Results

• Regional Newspaper Group: A 4-paper group had $110,000 in “small balance” subscription debt. Nexa recovered $58,000 in 60 days using our $15 Fixed-Fee service.

• Specialty Trade Magazine: An advertiser owed $12,500 for a year-long digital sponsorship. Our contingency team negotiated a full settlement in 22 days after the advertiser had ignored the sales rep for six months.

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Frequently Asked Questions (FAQ)

1. Will you drive away our advertisers?

No. Most ad debt is caused by a “dispute” (a missing PO, a typo in the ad, or a missed deadline). Our mediators are trained to find the “point of friction” and solve it so the client feels heard and the check gets cut.

2. Can you handle “transient” subscribers?

Yes. For print publications, people move and forget to update their billing. Our skip-tracing technology finds their new address and ensures the notice gets into their hands.

3. Why use an agency for a $45 subscription?

Because $45 multiplied by 1,000 “zombie” subscribers is $45,000. Our Fixed-Fee system is designed to make recovering these small amounts profitable for you.

Serving Publishers Nationwide Need a Collection Agency for subscription bills? Contact Us

 

Don’t Let “Chargebacks” and Corporate Slow-Pays Erase Your Margins

The hospitality industry is facing a silent crisis. While occupancy rates have stabilized, Net Revenue Retention is down. Why? Because the modern traveler—and the modern corporate client—has learned how to game the system.

From “friendly fraud” chargebacks on credit cards to corporate accounts stretching payment terms to 120+ days, the cost of waiting for payment is destroying your bottom line.

Why Switch to NexaCollect? Most generalist collection agencies destroy your reputation to recover a dollar. They treat your guests like criminals, leading to 1-star reviews on TripAdvisor and Google.

We do it differently.
We understand that in hospitality, a debtor is still a past guest. Our approach functions as a “Customer Resolution Department” first and a collection agency second. We recover the funds without burning the bridge. We recover more money by working with the debtor, rather than working against them. We shift our strategy from “amicable” to “diplomatic” to “more pressurizing” gradually.

If you are looking for an super-aggressive collection agency, we are not the right fit for you.

Serving Travel and Hospitality Industry Nationwide Need a  Collection Agency? Contact Us

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The Modern Landscape: Why Old Methods Fail

1. The “Junk Fee” Regulatory Trap
The FTC and state regulators are cracking down heavily on “drip pricing” (resort fees, cleaning fees, service charges). If your current agency attempts to collect a fee that wasn’t clearly disclosed, you could face fines. NexaCollect’s compliance team audits your files before we demand payment, ensuring every dollar we pursue is legally enforceable under current “Junk Fee Prevention” statutes.

2. The Car Rental Damage Dilemma
For independent rental franchises, the biggest bleed isn’t unpaid days—it’s Damage & Loss of Use. Consumers almost always dispute these charges. We have a specialized workflow for subrogation and damage recovery that uses your photo/video evidence to shut down disputes with insurance carriers and credit card issuers.

3. Corporate (B2B) “Ghosting”
Events, weddings, and conferences are back, but corporate payers are slower than ever. AP departments often ignore invoices under $5,000. Our B2B strategies bypass the help desk and go straight to the Controller or CFO, getting your invoice to the top of the “To Pay” pile.

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Q&A Guide: Solving Your Specific Pain Points

Q: Will sending a guest to collections ruin our online reviews?
A: It shouldn’t. We use a “Diplomatic Escalation” model. By using Step 1 (Fixed Fee), the first contacts are gentle reminders sent in your name. It looks like a billing oversight, not an accusation. This safeguards your brand integrity while effectively nudging the guest to resolve the balance.

Q: Can you handle international travelers?
A: Yes. Hospitality is global. We have the capability to reach debtors via email and digital channels compliant with international standards. While physical legal action is hardest overseas, our digital intensity often resolves the debt before litigation is needed.

Q: How do you handle “Service Dissatisfaction” disputes?
A: This is the #1 excuse for non-payment (“The room was dirty,” “The car smelled”). We act as a mediator. We ask you for the signed agreement and any incident logs. Once we present this proof to the debtor, 70% of “service disputes” evaporate because they know their bluff has been called.

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Pricing & Services: The “Waterfall” System

We use a phased approach. You pay only for the intensity you need.

Step 1: Pre-Collection (Guest Retention)

• Cost: ~$15 per account (Fixed Fee).

• Best For: Balances < $500; Corporate accounts 60-90 days past due.

• Strategy: Five polite but firm contacts (Letters/Emails) sent in your name. It preserves the “host/guest” relationship.

• Benefit: You keep 100% of the money collected.

Step 2: Escalation (Third-Party Demand)

• Cost: ~$15 per account (Fixed Fee).

• Best For: 90-120 days past due; Ignored invoices.

• Strategy: The tone shifts. We send formal demands in the agency name. This signals that the internal billing process has ended.

• Benefit: Usually prompts immediate payment from business travelers protecting their corporate credit.

Step 3: Contingency Collections (The Heavy Lifting)

• Cost: ~33% – 40% of amount collected (No Recovery = No Fee).

• Best For: Skipped guests, damage claims, and accounts >150 days old.

• Strategy: Our professional collectors use skip-tracing, credit reporting (where applicable), and intensive negotiation.

• Benefit: We take the risk. If we don’t collect, you pay $0.

Step 4: Legal Action (The Final Step)

• Cost: ~40% – 50% Contingency.

• Best For: Large corporate event balances or high-value damage claims ($2,500+).

• Strategy: Our network of attorneys files suit to obtain a judgment.

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Recent Results: Real Recovery Scenarios

• Boutique Hotel (Charleston, SC) – Wedding Event Default

  • The Problem: A bride and groom disputed a $14,200 “Food & Beverage” minimum charge after their reception, claiming “breach of contract” over minor service issues.

  • The Solution: We bypassed the couple and went to the guarantor (the father). We placed the account in Step 3 (Contingency).

  • The Result: Our legal team reviewed the contract, proved the service was delivered, and negotiated a settlement of $12,500 within 3 weeks. The hotel recovered revenue they had already written off.

• Independent Car Rental (Florida Airport) – Damage Claims

  • The Problem: The franchise had 150+ files of “diminished value” and damage claims (average $800) that insurance companies were ignoring.

  • The Solution: A bulk placement into Step 2 (Fixed Fee) to wake up the insurers, followed by Step 3 for the drivers.

  • The Result: Collected $48,000 in damages. The fixed-fee step cleared out the easy insurance payouts, saving the client over $6,000 in contingency fees compared to their previous agency.

• Corporate Travel Management (Chicago) – B2B Commissions

  • The Problem: A travel agency was owed $65,000 in commissions from various hotels and tour operators who were “slow-rolling” payments.

  • The Solution: We acted as an “Accounts Receivable Outsourcing” partner using Step 1.

  • The Result: 85% of the commissions were collected within 45 days. The agency kept 100% of the funds and only paid the small flat fee per account, maximizing their operational cash flow.

Need a Collection Agency? Contact us

Legal entities like law firms, independent attorneys, and even the district courts regularly need the help of a debt collection agency to recover money from unpaid accounts. People often use the legal services of a lawyer but fall behind in making promised installments. Similarly, district courts often issue summons and notices to make a payment, just to find that these individuals simply do not respond or have moved away from their residence on file.

Recovering Unpaid Bills for Law Firms Nationwide Need a collection agency: Contact Us

The main reason the legal collections activity needs to be outsourced is that engaging in-house staff for debt recovery is very expensive. Own employees do not have tools and subscriptions to some critical services required to locate the debtor (skip tracing), and send written demands with increasing intensity. They find it difficult to regularly follow up with clients for payments if the debtor has agreed to pay money in installments. They are also not fully trained on the most up-to-date federal and state debt collection laws when trying to recover unpaid bills from defaulters.

Collection agencies are experts in collecting debt; that is what they do every single business day. Debtors are more inclined to pay off when a collection agency is involved versus when the notices are issued under the legal entity’s name.

Check this: Cost of hiring a collection agency

The main reason collection agencies can send Collection Demands at such a reasonable cost is because they have automated systems and process accounts in bulk.  Sending five letters, which includes Scrubs like “Change of Address”, “Bankruptcy Check” and “Litigious Person check” at no additional cost improves the chances of collections and also reduces the possibility of being hit by a counter-lawsuit.

Once a debtor does not respond to collection letters, the next steps are Collection Calls or Filing a Lawsuit. These are contingency-based services and involve utilizing advanced Skip Tracing services. Non-payment can also lead to reporting the case to a credit reporting agency or follow-up with cosigners.

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 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 if recommended by the attorney.

If you need a collections agency to recover money from past-due legal accounts: Contact us