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collection agencies

Discussion in 'Pesticide & Herbicide Application' started by mrkosar, Feb 25, 2008.

  1. mrkosar

    mrkosar LawnSite Senior Member
    from Ohio
    Messages: 680

    what are some that you have used? what is the process like? worth it?

    i have quit service, called, and sent multiple letters to a couple of deadbeats. it isn't about the money any more...it is about respect now. even if i don't get the money i would like the late payers to hurt their credit.

    i would love to spray a huge FU with round up in their front yard, but obviously i would never do that. it is fun to fantasize about it though. imagine the neighbors looking out the window at that. i bet the customer would call quickly after that one huh?
  2. lawnservice

    lawnservice LawnSite Senior Member
    Messages: 589

    we use www.americanprofit.net

    is it worth it? sure is in my opinion.
    cost is very reasonable. they have different levels I believe the entry level will cost you $12 per account to be collected. They have a pretty good rate of return.
    We turn our accounts over to them when they reach 60 days and they generally collect our money before the account reaches 90 days. Now, I had the same success in collecting when I did it myself...just that now I dont need to worry about it...thats their job. I beleive we pay $10 per account, well worth it to me to give them the 10 bucks per account rather than me continueing to send letters and eventually make phone calls.

    took me some time to get on board with them because I thought it would be easier to continue to do it myself and keep the $10, but it aint. They are better at it and we keep the customer. When I was doing it I ussually lost patience and ended up cancelling the account so we're actually ahead of the game letting them do it.

    If you use Real Green software its really simple...if you dont have real green its still easy, just not as much, all is done online
  3. Landrus2

    Landrus2 LawnSite Fanatic
    Messages: 5,014

  4. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,751

    That is dirt cheap. I was paying 30% to my collection agent and they were slllllooooooowwwwwwww. I had to call them to find out what the status of the accounts were.
  5. lawnservice

    lawnservice LawnSite Senior Member
    Messages: 589

  6. group501

    group501 LawnSite Member
    Messages: 174

    We use American Agencies ( cachequest.net ). They also have a 2 tier system. For phase 1 we upload an account to them and add a $30.00 collection fee to their unpaid balance. American Agencies then sends a series of letters advising the customer that they have been retained to collect a past due debt and that the payment should be remitted to us. When we receive the payment from the customer we go on-line and advise American Agencies that the debt has been satisfied. If the debt has not been satisfied after the series of letters has been sent then we advise American Agencies to pursue phase 2 collections. During this phase a series of phone calls is made in an attempt to collect the debt. At this point the customer is advised to remit the payment to them and they retain a percentage of the debt and mail the balance to us.

    About 80% of our clients pay when they start to get the letters (our cost is less than $10.00 per account for phase 1). The one thing that I really like is that they run a skip trace on all uncollected phase 2 debts and make the appropriate notifications to the credit reporting agencies. If nothing else you get the satisfaction of knowing that whenever someone runs that individuals credit history their dead beat status will be revealed.:)
  7. Real Green

    Real Green LawnSite Senior Member
    Messages: 389

    We have real green software and use www.americanprofit.net Great people, good service, even better returns. I highly recommend them.

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