Nexa Collections

Propane, Heating Oil & Utility Debt Collection

You Delivered the Gallons. They Burned the Fuel. Now You Need the Cash.

Fuel delivery is a high-stakes inventory game.
Unlike a service business (like a lawn mower) where you lose time if a client doesn’t pay, in the fuel business, you lose inventory. Every gallon of #2 Heating Oil or Propane left in a debtor’s tank represents cash you already paid to the terminal.

When wholesale prices spike, your “Bad Debt” line item doesn’t just double—it triples. You are squeezed between the rack price and the customer’s wallet.

The “Winter Gap” Problem
The industry’s biggest killer is the “April Drop-Off.” Customers on Budget Plans pay faithfully through January, but as the weather warms up, they stop paying the “true-up” balance. They ghost you in Spring, leaving you with a $600 deficit that destroys the margin on every gallon you delivered all winter.

Why Switch to NexaCollect?
Most agencies treat a $400 fuel bill like a credit card debt. They don’t understand PUC (Public Utility Commission) regulations, “Cold Weather Rules,” or the intricacies of Automatic Delivery contracts. We do.

The 3 Leaks in Your Cash Flow Pipeline

1. The “Automatic Delivery” Trap

You fill a customer’s tank in February because your “Degree Day” software said they were low. Two weeks later, they move out. The new homeowner says, “I didn’t order this.” The old tenant is gone.

  • The Nexa Fix: We specialize in Tenant Skip-Tracing. We use utility data and credit headers to find where your “pump and run” debtor moved, serving them the demand letter at their new address before they unpack.

2. The Regulatory Minefield (Cold Weather Rules)

You often cannot shut off heat during winter months due to state moratoriums. Debtors know this. They abuse the “no shut-off” rule to rack up balances they have no intention of paying.

  • The Nexa Fix: While you can’t shut them off, you CAN collect. We apply credit pressure without violating PUC safety regulations. We turn the conversation from “You can’t freeze me” to “This will destroy your credit score for 7 years.”

3. The Tank Asset War

In propane, you often own the tank. If a customer defaults, you have a $1,500 steel asset sitting in their yard. Retrieving it costs money (crane, pump-out, labor).

  • The Nexa Fix: We use the debt collection process as leverage to negotiate the voluntary surrender of the tank or a “pump-out” agreement, saving you the legal fees of a Replevin action.

Serving Energy Industry Nationwide

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Delivering High Recovery Rates

Q&A: Fueling Your Recovery Strategy

Q: Can you collect on “Budget Plan” breakage?

A: Yes, and this is where Step 1 (Fixed Fee) shines. If a customer misses two budget payments in March/April, send them to us immediately. A polite but official reminder from a third party is often enough to get them back on the plan before the balance becomes insurmountable.

Q: Dealing with Commercial Farms/Greenhouses?

A: Agricultural accounts are notorious for “harvest-based” cash flow. When a large farm owes $25,000 for propane used in grain drying, standard letters don’t work. Our Commercial Division understands the agricultural cycle and negotiates payment plans secured by the harvest proceeds.

Q: Do you understand “Degree Day” disputes?

A: Absolutely. Customers often claim “You let me run out” or “You filled me when prices were high.” We act as a mediator, reviewing your delivery logs and contract terms to prove the delivery was authorized, neutralizing the dispute.

Pricing & Services: The “Gallon-for-Gallon” Recovery

We use a “Waterfall” system designed to protect your margins.

Step 1: Budget Plan Rehabilitation (Fixed Fee)

  • Cost: ~$15 per account.

  • Best For: Residential balances < $600; Budget plan “misses” (30-60 days late).

  • Strategy: Five diplomatic reminders sent in your name. It looks like a billing error notice, not a threat.

  • Benefit: Keeps the customer on your route. You recover 100% of the cash and stop the “churn.”

Step 2: The “Shut-Off” Warning (Fixed Fee)

  • Cost: ~$15 per account.

  • Best For: Accounts 90 days past due; “Will Call” customers who ignored the bill.

  • Strategy: Formal demand sent in the Agency Name.

  • Benefit: Signals that the account is flagged for credit reporting.

Step 3: Contingency Collections (Skips & Commercial)

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

  • Best For: Tenants who moved, tank recovery leverage, and balances > $1,000.

  • Strategy: Deep skip-tracing, asset investigation, and PUC-compliant negotiation.

Step 4: Legal Action

  • Cost: ~40% – 50% Contingency.

  • Best For: Large commercial/agricultural balances or recovery of high-value tank assets.

Recent Results: Real Industry Scenarios

  • Heating Oil Supplier (New England) – The “Budget” Crash

    • The Scenario: A mid-sized dealer had 200 customers default on their “Budget Caps” at the end of a mild winter, owing an average of $350 each.

    • The Solution: A bulk Step 1 campaign in May.

    • The Result: Recovered $52,000 in small balances. The dealer paid only the flat fee (~$3,000 total), keeping $49,000 to pre-buy fuel for next season.

  • Propane Distributor (Midwest) – The Agricultural Default

    • The Scenario: A large poultry farm owed $42,000 for propane used to heat chicken houses during a cold snap. The farm claimed “poor yield” and refused to pay.

    • The Solution: Placed in Step 3 (Contingency). Our team identified the farm’s active supply contracts with processors.

    • The Result: We negotiated a settlement where a portion of the farm’s next processing check was garnished directly to the propane dealer. Full recovery in 4 months.

  • Regional Gas Utility (South) – Tenant Skips

    • The Scenario: High turnover in university rental housing led to $80,000 in unpaid “final bills” averaging $120.

    • The Solution: Automated placement into Step 2 combined with credit reporting.

    • The Result: 40% of the students paid immediately upon seeing the “Collection Notice” hit their credit monitoring apps, fearing it would block them from renting their next apartment.

Stop Burning Profits.

Your trucks are burning diesel to deliver product. Don’t burn money chasing the payment. NexaCollect understands the unique squeeze of the energy market. Let us recover the funds so you can focus on the next delivery