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The “Phantom Debt” Crisis is Here. Is Your Reputation-Safe Recovery Strategy Ready?

The landscape of consumer credit has shifted. By 2025-26, the global BNPL market has surged to $600 billion, yet nearly 41% of users report missing a payment in the last 12 months. This isn’t just standard bad debt; economists call it “Phantom Debt”—liabilities that often don’t show up on traditional credit reports, making risk assessment nearly impossible for merchants.

If you are a BNPL provider or a retailer running an internal installment program, you face a unique mathematical problem: High Volume + Low Balances.

Sending a $65.00 defaulted installment to a traditional agency charging 40% contingency destroys your margin. You need a smarter, data-driven approach.

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Why NexaCollect? The “Micro-Balance” Economics

Most collection agencies are built to chase $5,000 credit card balances. They fail with BNPL because their cost-to-collect is too high. NexaCollect is different. We have engineered a Fixed-Fee Digital Waterfall specifically for the BNPL ecosystem.

1. Balance Grading & Propensity Scoring (The “Brain”)

Before we make a single contact, we analyze your portfolio. Since many BNPL users have “thin” credit files, FICO scores alone are useless. We use Alternative Data Modeling to grade accounts:

• Grade A (High Propensity): The “Forgetful” Payer. Good history, likely just missed an email. Strategy: Low-cost digital nudges.

• Grade B (Medium Risk): The “Overextended” Payer. Juggling multiple BNPL loans (stacking). Strategy: Structured payment plans.

• Grade C (High Risk): The “Intentional” defaulter. Strategy: Aggressive contingency collections.

The Result: We don’t waste expensive human labor on Grade A accounts. We automate them, saving you thousands in fees.

2. Seamless API & SFTP Integration

We act as an invisible extension of your ERP. Whether you use Shopify, Magento, or a custom lending platform, we accept:

• REST API : real-time placement (for instant escalation after Day 90).

• SFTP Batching:  (CSV/XML) for weekly portfolio sweeps.

• Two-Way Sync: When a user pays us, your system updates instantly to unlock their purchasing power again.

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Pricing & Services: The BNPL “Waterfall”

We flipped the model. Instead of taking a huge cut of your small orders, we offer a flat rate for early-stage recovery.

Step 1: The “Digital Nudge” (White-Label)

• Cost: ~$15 per account (Fixed Fee).

• Best For: Balances < $200; 30-90 days past due.

• The Strategy: Omnichannel reminders (SMS, Email, Letter) sent in your brand’s voice.

• Why it works: It feels like customer service, not collections. It preserves the customer’s dignity—and their lifetime value (LTV).

• You Keep: 100% of the recovered funds.

Step 2: The “Compliance Firewall” (Agency Name)

• Cost: ~$15 per account (Fixed Fee).

• Best For: 90-120 days past due.

• The Strategy: The tone shifts. The demand comes from “NexaCollect,” signaling serious consequences to the consumer’s future borrowing ability.

• Why it works: It breaks the “subscription fatigue” cycle.

Step 3: Contingency Collections (Deep Tracing)

• Cost: 30% – 40% of amount collected (No Recovery = No Fee).

• Best For: “Ghost” accounts, potential fraud, or balances > $500.

• The Strategy: Our team manually skip-traces users who have changed addresses or phone numbers—a common issue with Gen Z renters.

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Q&A: Addressing Your BNPL Challenges

Q: Our average order value (AOV) is only $85. Is it worth collecting?
A: Yes, but only with Step 1. If you use a standard 40% contingency agency, you recover ~$51. With our Step 1 (~$15 fee), you net $70. Multiplied across 1,000 defaults, that is a $19,000 difference to your bottom line.

Q: Do you report to Credit Bureaus?
A: Yes, but strategically. Reporting a $50 debt immediately can seem punitive and trigger “revenge reviews” online. We use credit reporting leverage in Step 3, giving the consumer ample time to cure the debt before we damage their score.

Q: Can you handle “Friendly Fraud” (Item Not Received claims)?
A: Absolutely. This is the plague of e-commerce. Our portal allows you to upload Proof of Delivery (POD) instantly. We attach this proof to our demand notices, effectively shutting down invalid disputes before they become chargebacks.

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Recent Results: BNPL & E-Commerce Recovery

• Fast Fashion Retailer (Gen Z Focus):

  • Challenge: 12,000 micro-balances (avg $45) from a “Split in 4” program. Traditional agencies refused the file due to low balances.

  • Nexa Solution: Automated Step 1 campaign via SMS/Email only.

  • Result: Recovered 41% of the portfolio (approx $221,000) for a total cost of just $1.50 per dollar collected.

• Electronics “Lease-to-Own” Platform:

  • Challenge: High-value defaults ($1,200+) on gaming laptops. Customers were “ghosting” after the first payment.

  • Nexa Solution: Balance Grading identified that 60% of these debtors had high utilization on other cards. We moved them straight to Step 3 (Intensive).

  • Result: Recovered $185,000 in assets and cash. The skip-tracing team located 300+ devices for repossession/payment.

• Luxury Skincare Brand (Subscription Model):

  • Challenge: High “passive churn” from expired cards on $150 auto-ships.

  • Nexa Solution: A “White-Label” Step 1 campaign focused on account updating rather than debt collection.

  • Result: $62,000 collected, plus 450 customers updated their billing info, restoring $67,000/month in recurring revenue.

Need a Collection Agency? Contact us

Trusted by businesses nationwide to recover millions in lost revenue annually. We combine a 80% success rate on viable claims with a diplomatic “Velvet Hammer” approach—ensuring you get paid without damaging valuable B2B relationships.

Commercial collection (also known as B2B debt collection) refers to the process of recovering money owed by one business to another. Unlike consumer debt, commercial disputes often involve complex contracts, supply chain issues, and multiple decision-makers.

Unpaid invoices can significantly strain a company’s finances. Businesses must partner with a dedicated collection agency to recover these funds swiftly—without draining internal resources. Our service is cost-effective, results-driven, and built on professionalism.

Quick Facts: Why Choose Us?

• High Success Rate: While industry averages sit between 15% to 40%, we achieve a nearly 80% success rate on viable debts (accounts under 300 days old backed by solid documentation). Fee communicated in advance after reviewing your case. Results may vary as viability depends on documentation, debtor solvency and dispute status.

• Business Credit Reporting: We report unpaid accounts to major Business Credit Bureaus. This affects the debtor’s ability to get future financing, creating a powerful incentive to pay you.

• No Risk Pricing: We operate on a contingency basis—No Recovery, No Fee.

• Nationwide Compliance: Backed by over 20 years experience, we are licensed in all 50 states and strictly follow the Uniform Commercial Code (UCC) and TCPA regulations.

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The “Velvet Hammer” Approach for B2B

A business debtor is often also a potential future client. We understand that preserving the business relationship is critical. Our collectors use a “Velvet Hammer” strategy: we are persistent and firm regarding the financial obligation, but professional and respectful in our communication. This approach recovers your money while leaving the door open for future business.

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Our 4-Step Commercial Recovery Process

Our commercial debt collectors utilize persistent contact, credit leverage, and skilled negotiation to resolve the vast majority of cases amicably, reserving legal action strictly as a last resort.

1. Investigation & Skip Tracing

Before making the first call, we investigate. We verify business status, identify key decision-makers (owners, CFOs), and check for bankruptcy filings. If a debtor has “ghosted,” our skip tracing tools locate them.

2. Strategic Demands & Credit Reporting

We use a multi-channel approach (calls, emails, and mailed notices). Crucially, we utilize credit leverage:

Impact: A negative mark on a business credit report (such as D&B, Experian, or Equifax) can block a company from getting loans or vendor credit. This pressure often forces immediate payment.

3. Negotiation & Mediation

Commercial debts often involve disputes over service quality or contract terms. Our specialists act as mediators to cut through excuses and secure full payment or enforce a structured settlement plan.

4. Legal Escalation (With Your Approval)

If a debtor has assets but refuses to pay, we can forward the case to our affiliated network of commercial litigation attorneys. We handle the paperwork and manage the process, so you don’t have to.

Need a Commercial Collection Agency? Contact Us Serving Nationwide – Low Fee

Industries We Specialize In

Commercial debt requires industry-specific knowledge. We have dedicated teams for:

• Construction & Contractors: Handling liens, material disputes, and general contractor issues.

• Manufacturing & Logistics: Collecting on unpaid freight bills, warehousing fees, and supply orders.

• Staffing & SaaS: Recovering service fees and contract buyouts.

• Wholesalers & Distributors: Managing high-volume, low-balance delinquent accounts.

• Commercial / Office leases 

Proven Results & Legal Authority

• Midwest Logistics & Freight ($140,000): Resolved a complex cross-border brokerage dispute in 22 days via targeted mediation, bypassing months of litigation.

• Industrial Manufacturing ($210,000): Recovered 100% of principal plus interest in under 45 days using “Corporate Diplomacy” to reconnect with new decision-makers after a client’s restructuring.

• Commercial HVAC Construction ($68,000): Secured a full retention payment in 24 days. By filing a “Notice of Intent to Lien,” we forced a developer to release funds to protect their property title.

Our Technical Edge: B2B Security

Secured Creditor Leverage: We specialize in UCC-1 filings and Mechanic’s Liens to “perfect” your security interests. This expertise ensures your business is moved to the front of the line during payment disputes or insolvency proceedings, providing the highest level of legal protection available.

Checklist: What We Need to Start

To achieve that 75% success rate, providing the right documentation is key. When you place an account, we recommend uploading:

• Copies of the original Invoices.

• The signed Contract, Purchase Order (PO), or Service Agreement.

• Statement of Account (showing payment history).

• Any relevant email correspondence regarding the debt.

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Frequently Asked Questions (FAQ)

What is the difference between Consumer and Commercial collections?

Consumer collections (B2C) are regulated strictly by the FDCPA to protect individuals. Commercial collections (B2B) are governed more by the Uniform Commercial Code (UCC) and contract law, allowing for different strategies and shorter timelines for resolution.

How much does it cost?

We work on a contingency fee model. Our rates typically range from 15% to 40% depending on the age of the debt, the balance size, and the complexity of the case. If we don’t collect, you don’t pay a dime.

Can you collect from a business that has closed down?

It is difficult, but possible. If the business owner signed a Personal Guarantee, is a Sole Proprietor, or is part of a General Partnership, they are personally liable for the debt. , We check for assets or “successor liability” (if they opened a new business under a different name).  Personal assets may also be reached if there is evidence of Fraudulent Transfers (hiding assets), though pursuing personal wealth typically requires an attorney or court judgment rather than standard collection efforts.

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Ready to Boost Your Cash Flow?

Don’t let unpaid invoices sit on your books. Statistics show that after 90 days, the chance of collecting a debt drops by 10% every month.

Get a Free Commercial Quote

Tired of a beautiful CareCloud dashboard and an ugly aging report?
You’re not alone. Many practices get the front end right—claims go out, payments come in—yet a stubborn pile of old patient balances never really moves.

Why CareCloud users still struggle with A/R

CareCloud checks a lot of boxes:

• Cloud-based EHR and practice management

• Integrated RCM tools or full billing services

• Dashboards that show denials, collections, A/R trends

On paper, everything looks under control.

But in real life you still see:

• Accounts that sit 60, 90, 120+ days past due

• A growing chunk of A/R tied to patient responsibility

• Staff who “will follow up later” but never quite get to it

That’s not a software bug. That’s the gap between billing and debt recovery.

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Where CareCloud helps you – and where it stops

CareCloud is very good at what it is supposed to do:

• Capture charges and create claims

• Scrub and submit those claims accurately

• Post payments and adjustments

• Generate aging and KPI reports

• Send standard statements and reminders

What it does not do:

• Call a patient every week for two months

• Track down a guarantor who moved and changed numbers

• Negotiate a realistic payment plan when a family is already behind on other bills

• Decide which accounts should move from “late” to “collections”

If your strategy is “we’ll keep sending statements and hope something happens,” your old A/R will keep growing—no matter how polished the software is.

 

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The “red zone”: when an invoice stops being a bill and becomes bad debt

Every practice has a point where, if you’re honest, you know:

“If this hasn’t been paid by now, it probably won’t be… unless someone treats it like a collections problem.”

A few simple signals:

• Age: The balance has been sitting for three to four months with no meaningful payment.

• Silence: Statements went out, maybe a couple of calls… and then nothing.

• Behavior: The patient stopped responding, keeps cancelling, or ignores every message.

CareCloud will happily show you these accounts in your A/R Aging report. It will not make the hard decision for you.

You need a line in the sand that says:

“After this point, this stops living in our billing workflow and moves to our collection workflow.”

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Turn your CareCloud A/R into a simple rulebook

Instead of debating every account, build a small rulebook that lives on top of your CareCloud data.

Here’s one way to structure it:

Rule 1: Time

• If a patient balance has no payment in 90+ days, and

• You’ve already made at least 3 contact attempts (statement, portal reminder, or phone call),

→ it is eligible for collections.

Rule 2: Amount

• Very small balances (for example under $50–$100):

  • Either batch them once or twice a year, or make a decision to write them off.

• Mid-sized balances (for example $150–$750):

  • Follow your normal reminder workflow; if still unpaid at 90–120 days, move them to collections.

• Larger balances (for example $1,000+):

  • Review earlier and escalate faster if there is no payment or plan by 60–90 days.

Rule 3: Exceptions

• Keep out:

  • Formal payment plans that are being honored

  • Active disputes

  • Approved charity-care or special-case patients

Once this is written down, CareCloud becomes a trigger engine, not just a reporting tool.

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How a CareCloud-friendly collections workflow fits in

Now you need a way to turn those rules into an actual, repeatable process.

That’s where a CareCloud-friendly debt-collection utility comes in. The goal is to make the handoff from CareCloud → collection agency:

• Easy to configure

• Boring to run

• Hard to forget

Typical knobs you control:

• Minimum balance:
  “Only send accounts with balances over $200 or $300.”

• Account age:
  “Only send accounts where there’s been no payment for 90 days (or 60 / 120 / 180—your choice).”

• Recovery path:

  • Start with a fixed-fee letter series (firm but courteous demand letters), or

  • Go straight to contingency collections for the worst accounts.

• Exclusions:

  • Remove accounts in payment plans, flagged disputes, or any category you mark as “do not place.”

Once configured, the utility:

1. Reads the A/R data from CareCloud.

2. Finds accounts that match your rules.

3. Prepares a clean, secure file for your collection partner.

You’re no longer “remembering to send accounts to collections”. It just happens on schedule.

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Three simple playbooks (you can adjust the numbers)

You don’t have to reinvent anything. Start with patterns like these and tweak them to your comfort level.

Playbook 1 – Standard patient A/R

• Balance ≥ $200

• No payment in 90+ days

• At least 3 contacts recorded

→ Send to a fixed-fee letter program first. If no response after that series, escalate to contingency collections.

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Playbook 2 – High-balance safeguard

• Balance ≥ $1,000

• No payment or arrangement at 60 days

→ Manager review + one last internal call.
If still no plan by 90 days, move to a full collections placement.

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Playbook 3 – Old A/R cleanup
Once a month, run a report of all patient A/R over 120 days that isn’t in a payment plan or dispute.

• Decide whether to:

  • Place them in bulk with your collection agency, or

  • Close / write off accounts that truly have no recovery path

Either way, you stop letting “forever balances” clutter your CareCloud reports.

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“Won’t using a collection agency upset our patients?”

It depends on who you choose and what you ask them to do.

A good healthcare-focused collection agency will:

• Work under HIPAA and other privacy rules, sharing only the minimum needed information

• Follow debt-collection regulations and your own communication preferences

• Approach patients with a firm but respectful tone

• Offer realistic payment options instead of “pay in full or else” ultimatums

Your team stays focused on care and early financial conversations.
The agency focuses on late-stage accounts that have already been given reasonable chances.

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Where Nexa fits in (and what we don’t do)

Quick clarification:

• Nexa is an information portal.

• We are not a collection agency.

• We do not call your patients or report to credit bureaus.

What we do:

• Talk with practices that use platforms like CareCloud and dig into their A/R challenges, typical balances and patient mix.

• Help you think through placement rules that sit on top of your existing CareCloud reports.

• Share your collection requirements with a shortlist of medical collection agencies we believe are a good match for your type of receivables.

• Leave it completely up to you whether to work with any of them.

CareCloud already gives you cleaner claims, better reporting, and a clearer view of your revenue.

Layer a simple, rule-based collections process on top, and those stubborn 60–120+ day balances stop being long-term residents in your aging report—and start becoming cash you can actually use.

Already using CareCloud Software? Have unpaid medical bills?  Need to transfer your overdue accounts receivable to a collection agency? Contact us You decide what should be the minimum outstanding balance eligible for collections. Only send accounts if a payment hasn’t been made in _(60/120/180) days. Send 5 collection demands to your patient or transfer directly for debt collection calls. You are in total control of the process. Dedicated small business debt collectors. Contact us for a demo of our free CareCloud debt collection utility.

 

In the swimming pool industry, you sell two things: your labor and your chemicals. When a client doesn’t pay, you aren’t just losing profit; you are physically paying out of pocket to keep their water blue.

Many pool business owners fall into the trap of trying to be their own debt collectors. They send awkward texts, leave polite voicemails, and hope for the best.

Here is the hard truth: If you are scrubbing tiles, you shouldn’t be scrubbing your aging report. Here is why handing accounts over to a professional agency is the smartest move for your bottom line.

Serving Pool Companies Nationwide Need a Collection Agency? Contact Us

The “Neighborhood Reputation” Trap

Pool service is a hyper-local business. You rely on referrals from neighbors.

• The Problem: Aggressively chasing a client for $300 can lead to them bad-mouthing you on Nextdoor or local Facebook groups.

• The Agency Solution: A third-party agency acts as a professional buffer. They play the “bad cop,” allowing you to remain the “good cop” who just wants to provide great service. You can truthfully say, “I’m sorry, our accounting system automatically forwards accounts at 90 days, it’s out of my hands.” This preserves your reputation while still applying pressure.

Service Routes vs. Construction: Where Agencies Shine

1. The Maintenance Route (Unsecured Debt)

For weekly cleaning, chemical stops, and minor repairs ($200 – $1,000), you generally cannot file a Mechanic’s Lien. The legal costs to sue in small claims court often exceed the debt itself.

• Why DIY fails: A homeowner knows you won’t sue them for $250. They prioritize their mortgage and car payment over you.

• Why Agencies win: A collection agency can report the debt to the Credit Bureaus. Suddenly, that “ignorable” $250 bill threatens their credit score. This is often the only leverage that works for service debts.

2. The “Missed Window” Construction Debt

For builders and plasterers, the Mechanic’s Lien is powerful, but the window to file is tight (often 60-90 days).

• The Reality: Many builders wait too long because the client keeps promising “the check is in the mail.” Once that lien deadline passes, you have zero leverage.

• The Fix: When the lien window closes, a collection agency is your safety net. They have the tools to trace assets and demand payment even after your lien rights are gone.

The Hidden Power: Skip Tracing

A common scenario in the pool industry: The “Sold Home” Vanishing Act. A client runs up a bill getting the pool ready to sell, sells the house, and moves out of state without paying you.

• You: Send invoices to an empty house.

• The Agency: Uses “Skip Tracing” technology to locate the debtor’s new address, new phone number, and sometimes even their new place of employment. They find the people who are trying to hide.

The 90-Day “Hand-Off” Rule

When should you stop asking and start assigning? The industry standard is 90 days.

• Days 1-60: This is your job. Send the invoice, send the reminder, pause service.

• Day 90: If they haven’t paid after three months, they aren’t “forgetting.” They are ignoring.

• The Cost of Waiting: Research shows that once a debt is 6 months old, the chance of collecting it drops to 50%. Hand it off while the debt is still “fresh” to maximize your recovery rate.

Focus on Blue Water, Not Red Tape

Your expertise is hydraulics, chemistry, and construction. A collection agency’s expertise is the FDCPA (Fair Debt Collection Practices Act).

• If you call a debtor at the wrong time or threaten the wrong thing, you can be sued.

• Agencies are licensed to apply maximum legal pressure without crossing the line.

Stop funding your clients’ swimming pools. Get a Collection Agency Specialized in the Pool Industry.

Contact Us

 

 

Stop the Bleed Without Killing the Patient Experience

For many urgent care operators, “Days in AR” has become a secondary metric to the “Zero-Touch Rate”—the percentage of claims paid without human intervention. Currently, the industry average for zero-touch claims is only about 40%. Every extra “touch” from your staff adds labor costs and delays cash flow.

When a patient with a $2,000+ deductible leaves your clinic with an unsettled balance, they aren’t just a patient anymore; they are your largest payer segment.

Nexa bridges the gap between providing compassionate “neighborhood” care and maintaining a professional revenue cycle. We don’t just chase checks; we resolve the friction that stops them from being written.

Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation, free bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant. Over 2,000 online reviews rate us 4.85 out of 5. 

Need a Collection Agency? Contact us

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The Urgent Care Reality 

• 56%: The average Time-of-Service (TOS) copay collection rate—down from 90% pre-pandemic.

• 11%: The average increase in operating costs for medical groups over the last 12 months, tightening the tolerance for slow-moving patient AR.

• 32%: The percentage of patients now enrolled in plans with deductibles exceeding $2,000, shifting the primary financial burden from the insurer to the individual.

• 40%: The “Zero-Touch” industry benchmark. If your staff is touching more than 60% of your claims, your cost-to-collect is likely eating your profit margin.

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The Nexa “Reputation Shield” Methodology

We understand that an urgent care clinic lives or dies by its local reputation.

A single aggressive collection call can trigger a viral 1-star review. Our 4-step approach is hard-coded for Amicable Mediation:

1. Early-Out Fixed Fee (Step 1): We trigger professional, soft-touch demands under your brand or ours. This reminds patients of their responsibility while the “thank you for choosing us” sentiment is still fresh.

2. Full Mediation (Steps 2-4): For older debt, our contingency team uses professional negotiation. We identify why the bill isn’t paid—often an insurance glitch—and solve the root problem to get the check cut.

3. Strict Compliance: We are 100% compliant with the Fair Debt Collection Practices Act (FDCPA), HIPAA, and the Telephone Consumer Protection Act (TCPA). We assume the regulatory risk so you don’t have to.

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Legal Landscape: What Urgent Care Owners Must Know

The “Credit Score Threat” is largely dead. As of 2025, major credit bureaus have voluntarily removed most medical debts under $500 from reports, and many states are moving toward total bans on medical debt credit reporting.

• The No Surprises Act: We ensure all collection efforts respect federal “Surprise Billing” protections, especially for out-of-network emergency services.

• State-Specific Thresholds: From Virginia’s Medical Debt Protection Act to California’s strict reporting laws, we navigate the patchwork of local rules that often trip up internal billing departments.

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Recent Recovery Wins

• Medical (Multi-Site Urgent Care): A regional group with $420,000 in “micro-balances” (averaging $180) saw a 52% recovery rate within 90 days using our Step 1 Fixed-Fee system, restoring over $218,000 in cash flow.

• Business (Occ-Health Services): A clinic was owed $45,000 by a local manufacturer for drug screenings and physicals. Nexa’s B2B mediators cleared the “corporate red tape” and secured the full $45,000 payment in 22 days.

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Frequently Asked Questions (FAQ)

1. Will using an agency drive patients to my competitors?

Actually, the opposite is often true. Patients often avoid returning to a clinic where they know they have an “awkward” unpaid balance. By resolving the debt professionally through a third party, you clear the path for the patient to return for their next urgent need.

2. Why focus on debt under $500 if it’s not reported to credit bureaus?

Because $500 is the new “sweet spot” for revenue leakage. While it doesn’t hit a credit report, it does hit your bottom line. We use mediation and easy-pay digital triggers to get these balances paid without needing the “threat” of a credit score drop.

3. Do you handle Occupational Medicine (B2B) accounts?

Yes. We have a dedicated division for Worker’s Comp and Employer-Paid services. These are often high-value and require a different negotiation style than consumer patient debt.

Recover Your Urgent Care Revenue Today

Collecting a debt can be a complicated process. Whether someone owes you money under a contract or you’ve obtained a court money judgment against someone, several tested tactics can get you paid. When it comes to collections, success requires an organized, well-managed, and thorough process. There are no secret tricks or little-known tips, although some ingenuity in obtaining information is helpful. Ultimately, collection success follows diligence and focus.

Here are ten of the most effective collections tactics and how to apply each to increase your collections cash flow:

1. Use all the information you already have on your debtor

If the debt is from a contract or a loan, you probably have an application or some other preliminary documentation on your debtor. Loan applications ask for extensive contact and employment information, and while some of that information is part of an approval process, it’s also used for collections. Start with the debtor’s address and employment information listed on the application or other documentation.

2. Search online and on social media

Chances are, your debtor has some digital footprint, and online information can be a source of contact information and other insight into the debtor’s affairs. Check social media accounts for the debtor, and then look for employment clues, or details on where the individual lives, works, and who they associate with.

3. Check those credit references

If you asked for credit references as part of a loan or rental application, this is the time to reach out to the listed people. In general, you can only ask these references for information about the debtor’s location and cannot discuss the debt details. Contacting references serves two purposes: it alerts the debtor (since the reference may contact them) and can be the source of new information on the debtor.

4. Contact, contact, contact

Once you have basic contact information from your documentation, online sources, or references, begin a scheduled and persistent process of contacting the debtor. Begin with a phone call and a letter. Use certified mail with the first mailing attempt, as this can confirm a debtor’s address and can be evidence that you alerted the debtor of the amount owed. Be persistent and firm, but tell the debtor you want to work with them to resolve the matter.

5. Uncover banking information

If you are collecting on a money judgment, you may be able to enforce the judgment using bank account garnishments, but the key to this tactic is knowing where your debtor keeps their money. You may have this information already from any payments the debtor may have previously made. Also, if you paid the debtor via a check, see which bank processed the payment. Go back and check social accounts, too. Your debtor may follow the social media feed of their financial institution.

6. Find out if the debtor owns a vehicle

Many state motor vehicle departments allow third parties to request information on vehicles registered to an individual. Like bank accounts, a car or other vehicle can potentially provide a source for payment.

7. Ask the debtor, and others, to provide information

If you have a judgment, you can invoke your standing as a judgment creditor to compel disclosure of information on the debtor. An information subpoena is a simple list of questions such as:

• Where do you bank?
• Do you have any cash on hand?
• Where do you work?

An information subpoena can also be sent to third parties, such as banks and certain individuals, to find answers to the same questions.

8. Offer a payment plan

It’s possible — likely, even — that a debtor hasn’t paid you because they cannot. Offering a payment plan may be a tactic to get some cash flowing and create a more friendly relationship that can result in more payments. A payment plan can also take the form of a Confession of Judgment, which can speed up the process of converting the collection account to a judgment if necessary.

9. Be open to settlement

When it comes to collecting a debt, getting some amount is preferable to getting nothing. Use the information that you have collected to assess whether or not the debtor has assets or means to pay the debt. Extend a discounted offer to accept a smaller sum in full, and reduce the amount of your losses.

10. Document Everything

Keep records of all communications and agreements made with the debtor. This includes phone calls, emails, and written correspondence.

11. Hire professionals

Professional debt collectors know how to orchestrate all that’s required for a successful collection. They often take a percentage of what they collect, so there’s little or no out-of-pocket expense. They know all these tactics and more and can help manage the process and guide you to more money. Debt collectors recover money from unpaid invoices all day long. That’s their job, their debt recovery tactics cannot be matched by regular folks. As a last resort, reporting the debt to credit bureaus can sometimes incentivize payment, as it affects the debtor’s credit rating. Make sure that you are compliant with laws and regulations when doing this.