Collection Agency for Lumber Companies

Lumberyards Are Not Banks: Stop Financing Your Customers’ Projects

In the building materials industry, there is a brutal reality: Net 30 often turns into Net 60 or Net 90 without you agreeing to it.

As a supplier, you are operating on razor-thin margins. Industry data for 2024 shows that the average net profit margin for building material dealers often hovers between 3% and 6%.

Here is the math that keeps owners awake at night: If you write off just $10,000 in bad debt at a 5% margin, you have to sell an additional $200,000 in lumber just to break even.

You cannot afford to let general contractors (GCs) use your inventory as an interest-free loan while they wait on their draw. You need a recovery partner who understands the difference between a legitimate “shortage” claim and a stall tactic.

The “Dispute” Game: How GCs Delay Payment

We know the specific excuses you hear from general contractors, because we handle them every day. Traditional agencies treat every debt like a credit card bill. We treat lumber debts like construction disputes.

We know how to push back on the common “stall tactics” used in the lumber trade:

• The “Culling” Claim: The contractor waits 45 days to tell you that 20% of the framing package was “unusable” due to wane or shake. We demand the timestamped photos and the rejection notice that should have been sent upon delivery, not two months later.

• The “Phantom” Shortage: They claim the load was short five bundles of studs. We counter with the signed Proof of Delivery (POD) and GPS data from your drop.

• The “Pay-When-Paid” Bluff: GCs often tell suppliers they can’t pay until the owner pays them. In most states, this clause does not apply to material suppliers. We remind them of the law.

Collecting money for Lumber Companies Nationwide Contact us and start recovering. High recovery rates.

A Recovery Process Built for the Job Site

We don’t use a “one size fits all” script. Our 4-step model is designed to respect your lien rights and recover funds before they disappear.

Phase 1: The “Notice” (Flat Fee Protection)

• Cost: Just $15 per account.

• Strategy: We send official, third-party demand notices. This isn’t just a bill; it’s a signal that you are preparing to escalate.

• Why it works: It puts you at the top of the AP stack without costing you a percentage of the invoice. You keep 100% of the money recovered here.

Phase 2: The Lien-Aware Escalation

• Cost: $15 per account.

• Strategy: If the first notice is ignored, we turn up the heat. We verify your deadlines for Mechanic’s Liens and Bond Claims. We operate with speed because we know that once your lien window closes (often 90 days), your leverage drops to zero.

Phase 3: Contingency Collections (The Heavy Lifting)

• Cost: 40% of funds collected (No fee if we fail).

• Strategy: Our senior negotiators step in. We handle the “unconditional lien waiver” demands and negotiate payment plans for cash-strapped builders. We charge a fee only on success.

Phase 4: Construction Litigation

• Cost: 50% of funds collected.

• Strategy: If a builder has assets but refuses to pay, our network of construction attorneys is ready to file suit.

Why LBM Dealers Choose Us

• We Check Before We Chase: We provide Free Bankruptcy and Litigious Checks on every account. If a builder has already filed Chapter 7, we tell you immediately so you don’t throw good money after bad.

• We Protect Your Brand: The construction world is small. We recover your money firmly but professionally, ensuring you don’t get a reputation for being “impossible to work with” in the local market.

• Nationwide Reach: Whether you shipped a load across the county line or across the country, we are licensed to collect in all 50 states.

Q&A: Real Issues from the Lumber Yard

Q: Can you help if the material was stolen from the job site?

A: This is a massive issue. Contractors often try to refuse payment for material stolen after delivery. However, legally, FOB Job Site means the risk of loss transfers to the buyer upon delivery. If you have a clean POD, we enforce payment. The contractor’s lack of site security is not your financial loss.

Q: Do you handle Retainage disputes?

A: Yes. Retainage (usually 5-10%) is standard, but GCs often “forget” to pay it out months after the project is closed. We track substantial completion dates and aggressively pursue these “leftover” balances that add up to significant profit.

Q: What about “Moisture Content” disputes?

A: This is frequently a user error (improper storage on site) rather than a product defect. We know how to ask the right questions to determine if the lumber was left uncovered in the rain versus actually being delivered wet.

Stop Cutting Into Your Margins

You delivered the wood. You deserve the check. Stop letting bad debt eat away at your hard-earned profits.

Click here to Get a Quote and start collecting today.

Lumber companies often need professional help to negotiate non-payment cases and work with the legal team for lien processing and collection of delinquent accounts. These debts can be B2B and even B2C.

Let us accept the fact. The employees of the accounting team of lumber companies are not professional debt collectors. They do not have the required tools for debt collection or the time. Accounts that become 90 days past due have a very high chance of falling into that permanent delinquent status. Rather than waiting for a few months and writing off the debt, it is better to hire a collection agency on time and recover the maximum money possible.

A good collection agency should be an expert in your area and must provide references of other lumber companies they have served.