Waste management, disposal and recycling companies extensively use Debt Collection Agencies to recovery money from their aging accounts receivable. Debt is typically transferred after 60 days in B2C collections and after 90 days in B2B collections. B2C collections are also called “Consumer” collections and B2B falls under “Commercial” collections. There is a big difference on the kind of approach followed in each type of collections.
Waste management industry faces constant challenges that includes recruiting skilled employees, waste collection, sorting, adherence to laws, overcoming poor-quality recyclables and intensive safety compliance. Non payment of money from customers/clients/vendors is a major concern, and requires serious collection efforts to maintain a good cash flow. Their in-house staff is poorly skilled to recover money from past-due accounts when compared to Collection Agencies.
The three step recovery process followed by Collection Agencies, coupled with advance skip tracing tools, profiling and risk analysis, ensures maximum return while attempting to preserve your relationship with the debtor.
An agency should be well equipped with multilingual staff, experienced collectors, track record of high collection rates, pan-American presence and ability to perform both B2B & B2C collections, all these should be the most important selection criteria.
A good collection agency should be able to work like an extension to your accounts department, so while your staff focuses on expanding business a Collection Agency should work hard to keep your accounts receivable at a minimum.