Is Your Current AR Strategy Costing You 50% More Than It Should?
If you are reading this, your Accounts Receivable (AR) process is likely stuck in one of two dangerous places: either you are burning valuable internal hours chasing invoices that are 90+ days past due, or you are handing them over to a traditional collection agency that immediately takes half of your money.
Both options are draining your bottom line.
In today’s economic climate, where interest rates are high and cash flow is king, holding onto bad debt is expensive. But the old way of fixing it—hiring aggressive “break-their-knees” agencies—is obsolete. Modern businesses need a recovery partner that uses data, technology, and Regulation F compliance to get paid without torching customer relationships.
It is time to switch to a model that prioritizes your equity, protects your name on Google, and scales with your growth.
The Problem: Why Traditional “Contingency-Only” Agencies Fail You
Most agencies operate on a “churn and burn” model. They don’t make a dime unless they collect, which sounds good in theory. However, this motivates them to use aggressive tactics immediately, often ignoring the nuances of your customer relationships. Furthermore, they usually charge 33% to 50% on the first dollar collected—even if that debtor would have paid with a simple, firm, third-party letter.
Why switch to us?
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Keep your legal risk low while recovering more: We strictly adhere to the latest CFPB Regulation F updates, ensuring you aren’t liable for harassment suits.
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Stretch your internal team further without hiring extra staff: Let your accounting team focus on current billing while we handle the backlog.
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Protect your brand equity while boosting cash flow: We treat your customers with dignity, preserving the possibility of future business.
The Solution: A 4-Step Intelligent Recovery System
We don’t force you into a high-fee tier immediately. Our system is designed to recover funds at the lowest possible cost to you.
Step 1: First-Party Gentle Reminders (The Extension of Your Team)
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Cost: Flat fee of $15 per account.
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Action: We act as your internal AR department. Communications go out in your name. This is perfect for early-stage delinquency (30-60 days) where you want to maintain a “customer service” tone.
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Result: You keep 100% of the money collected.
Step 2: Third-Party Demands (The Authority Shift)
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Cost: Flat fee of $15 per account.
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Action: If the debtor ignores you, the tone shifts. We send formal demand letters in our name (NexaCollect). This signals to the debtor that the account has been escalated to a professional agency.
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Result: This psychological shift is often all it takes. You still keep 100% of the money collected in this phase. Most of our clients resolve their AR issues here.
Step 3: Intensive Contingency Collections (The Pressure Phase)
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Cost: 40% of the amount collected (No fee if we don’t collect).
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Action: If demands are ignored, our professional collectors begin intensive phone negotiations, skip-tracing (locating debtors who moved), and credit bureau reporting.
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Compliance Note: We utilize modern “7-in-7” call frequency rules to ensure maximum pressure without violating federal harassment laws.
Step 4: Legal Litigation (The Final Hammer)
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Cost: 50% of the amount collected.
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Action: For debtors with assets who refuse to pay, our nationwide network of attorneys files suit.
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Note: We never sue without your explicit permission.
Recent Results: Real Recovery Scenarios
We don’t just talk about results; we deliver them. Here is how we are helping businesses right now:
The SaaS Scenario (Austin, TX)
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The Client: A B2B software provider with $48,000 in unpaid subscription renewals from 15 different clients.
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The Challenge: They feared using an agency would look “desperate” to their investor base and alienate clients.
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The Fix: We used Step 2 (Third-Party Demands).
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The Outcome: We recovered $39,500 within 35 days. The total cost to the client was under $300 in flat fees. A traditional agency would have taken nearly $13,000 in commissions for the same work.
The Logistics Scenario (Savannah, GA)
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The Client: A mid-sized trucking brokerage owed $22,000 by a single manufacturer who was ghosting them.
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The Challenge: The debtor was active but hiding behind gatekeepers.
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The Fix: We ran a litigious check (free) to confirm solvency, then moved to Step 3 immediately due to the debt age (120+ days).
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The Outcome: Our skip-tracing team located the CFO’s direct line. We negotiated a settlement of $20,000 paid in two installments. The client recovered the majority of the funds rather than writing it off as a total loss.
Need a Collection Agency for your Business? |
Q&A: Mastering the Modern AR Process
Q: What new laws should I be worried about regarding AR collections?
A: The biggest recent shift is Regulation F (Reg F), implemented by the Consumer Financial Protection Bureau (CFPB). It modernized the Fair Debt Collection Practices Act (FDCPA).
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Call Limits: Debt collectors are now strictly limited to calling a debtor 7 times in 7 days.
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Digital Contact: It clarified rules for using email and text messages for collections, requiring clear “opt-out” mechanisms.
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Validation: It standardized the “Notice of Debt” validation letter.
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Why it matters: If your current agency (or internal team) isn’t strictly following Reg F, your business could be sued for statutory damages. We handle this compliance for you.
Q: My internal team sends emails. Why aren’t they getting paid?
A: “Vendor fatigue.” When a debtor sees an email from your accounting department, they view it as a request they can deprioritize. When they receive a formal demand from a third-party agency, the dynamic changes. It signals consequences—specifically credit damage or legal action. Our data shows a third-party letterhead is up to 5x more effective than an internal email at prompting payment.
Q: How do I know if a debt is “uncollectible”?
A: Don’t guess; let us check. We provide Free Bankruptcy and Litigious Checks.
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Bankruptcy: If they filed Chapter 7, you cannot legally pursue them. We identify this instantly so you don’t waste money.
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Litigious Defaulters: Some debtors are “professional plaintiffs” who sue agencies for technical violations. We flag these high-risk individuals before we make the first call.
Q: When should I move an account to your service?
A: The “Golden Window” is between 60 and 90 days past due. At this stage, the debt is still fresh enough to recover easily using our low-cost Step 2 letters. Once a debt passes 120 days, the likelihood of full recovery drops significantly, often requiring the more expensive Step 3 contingency service.
Stop Letting Your Invoices Depreciate
Every day an invoice sits unpaid, inflation eats away at its value. Take control of your accounts receivable with a process that is smarter, safer, and significantly more profitable.