Debt collection for Plumbers and Contractors

Plumbers and private contractors run into business issues all the time. However, getting paid on time for the work done is probably the biggest challenge. Plumbers often need a Line of Credit to function.

Contractors who take plumbing assignments for commercial businesses face a different set of issues versus those dealing in residential projects. Ongoing business challenges include – Increased competition from low-priced competitors, maintaining profit margins, hiring talented staff, negotiating retention, and coping with sudden material price increases.

Not only is finding skilled labor is hard in United States, but the experienced staff already on your payroll is also getting more expensive. When stepping into a home, you never know whether this owner will eventually turn out to be a good customer or not once the job is finalized.

Serving Plumbers Nationwide Need a Collection Agency for Plumbers? Contact Us

Contractors and plumbers often run into unforeseen problems during a job that increases costs. If these expenses were not included in the initial estimate, the customer may refuse to pay the additional amount.

Cost of insurance, going through one-way contracts, and sometimes writing the job info multiple times takes time. Moreover,  fixing dripping faucets, low water pressure, running toilets, leaky pipes and clogged drains is not all that exciting. Working day-in and day out, contractors do not have much time and energy left to chase after their unpaid bills and overdue accounts receivable.

What can you do if a customer has not paid you in full even after 30-60 days since the job was completed? Not much other than making a few reminder phone calls. Let an experienced collection agency handle your past-due accounts to minimize your accounts receivable. They are experts at it and do it pretty much all day long.

A collection agency can settle these past-due accounts by prioritizing your invoice while using respect and diplomacy to maintain strong customer relations. Submitting accounts to a good collection agency on time will improve your cash flow and maximizes the chances that your small business gets paid in full for the work done.

Summary of Collection Agency’s Services

Collection Letters Service

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.

The probability of an amicable solution decreases for accounts older than 120 days and those who have not paid even after receiving collection demands.

Collection services can perform collections in many ways:
1. Five diplomatic reminder letters send under your name.
2. Then, five collection demands are sent under the collection agency‘s name.

The first two steps are flat fee services. They are a great deal if the debt is less than 120 days old and costs between $15 to $20 per customer.

3. If all amicable efforts fail, a debt collector will call your client and try to recover the debt. This service is contingency-based, which means an agency will give you back about 60% of the amount collected and keep 40% as their service fees. Do not fall for collection agencies offering very low contingency rates, as their recovery rates will likely be lower.

Check this page >> Cost of Hiring a Collection Agency

If you are looking for a good collection agency, we can help you. Contact us if you are interested in finding out more.