4 Mistakes Agencies Make That Lenders May Be Unaware Of…

4 Mistakes Agencies Make That Lenders May Be Unaware Of…

One of the secrets to success here at Delta Management Group, Inc. is our willingness to take on Second Placements when beginning a new Client Relationship. It gives our new Client a reasonable comparison to their current agency, and provides a challenge to our collection team. We are eager to jump right in and put our scrubbing, deep skip-tracing, and investigative processes to work for you, and results are realized very quickly.

How, one may ask, are we able to earn our way in and produce consistent results when collecting on accounts which have not only been worked by our Client, but also by another agency? While each delinquent account is unique, there are four mistakes we consistently see other agencies make which can cause liability to go up, and late stage recovery to go down:

1.) The Army Tactic

At Delta, we understand that when collecting from businesses, the “army tactic” does not work. What is needed is a “Special Forces” approach with collectors who have years of training and a proven track record of successful mediation skills. We effectively combine the right people and tactics to execute our results driven plan.

Other agencies use the “one-size fits all” approach that seats need to be filled, calls need to be made, and that businesses and Personal Guarantors will succumb to the pressure. This pre-packaged, generic thinking may work with consumer debt, but when collecting commercial debt, a more professional approach is required. While other agencies use blanket generic tactics, we take a personalized, individual strategy to each account. We have found this to be vital in a successful collections program.

2.) Lack of Proper Investigation and Improper Use of Technology

Have you ever received a solicitation call from a company that uses a dialer system? Wasn’t it bothersome that you said “hello” three times before anyone even acknowledged you? Now imagine you are a business owner who has not seen things go the way you planned. You have not been able to work it out with the lender and now the account has been placed with a third party collection agency. Who would you be more likely to talk to: the automatic dialer system, or a real person who picked up the phone and called you?

Another ineffective tactic other agencies use is a “random” account system that circulates accounts within their office. Every collector, from the most experienced to the least experienced has a shot at the account. There is very little, if any, proper investigation of the account and how to best work it. At Delta, we investigate the file at a management level, and then assign it to the proper experienced collector on our staff. That senior collector is given an adequate amount of time to properly investigate and work the account. This gives the delinquent customer one contact person, rather than having to explain themselves to multiple people. We deal with commercial accounts on a daily basis, and our collectors are always closing deals.

3.) Poor Training, Employee Retention, Compliance and Security Missteps

While other agencies build a large staff of low base rate and entry-level new hires, Delta is staffed by senior collectors who understand the equipment finance and commercial debt industries. Our collectors enjoy their jobs, and are paid well. We feature a No-Cap internal commission structure that incentivizes our collectors by making unlimited income a real possibility.

Nearly everyone can agree that in-house training is essential for collection success. At Delta, we have a time-tested initial training program for new hires, along with ongoing training and education for all of our staff performed on a regular basis. We also have a strong commitment to external training, and this is what sets us apart from our competitors. This lack of external training at other agencies can cause an increase in liability for all parties involved, and an increase in security missteps.

Unlike other agencies, we at Delta pride ourselves in our collectors’ hunger for more information on current industry topics. Our management and collectors are passionate about our company’s exemplary compliance record. By keeping current with industry regulations, training, compliance matters and best practices, Delta has easily out-paced our competition.

4.) Lack of Account Scrubbing, Skip-Tracing Shortcuts and More

One of the worst mistakes an agency can make is taking shortcuts when scrubbing or skip-tracing an account. I am reminded of a situation with a new Client. This Client placed accounts that had been worked by their current agency without results. When we scrubbed the placements for current or ongoing bankruptcies, we were shocked to find that a number of them had filed bankruptcy prior to the other agency working them. Clearly, the prior agency had not done their job properly, and potentially exposed the Client to immense legal liability.

At Delta, we scrub every account placed for bankruptcies. Not only is this a prudent business practice, but it lessens our Clients’ exposure to liability. Our skip-tracing department is second to none. We use up to ten different sources to get the most current information.

Other agencies have well spoken sales teams, big budget marketing plans, and lawyers fighting to keep settlements and court cases quiet. With so much of their time, money and energy split between these three areas, they inevitably become key components to their business model. Notice anything missing? At Delta, our budget is spent on something most other agencies seem to have forgotten, and that is improving collections and building trusted client relationships.

As you can see, the importance of constantly evaluating your agency relationships cannot be understated. Not only can an agency like Delta improve your late stage recovery efforts, but with our unblemished legal record, we have the potential to dramatically decrease your exposure to legal liability. For a free, no obligation quote for services, please contact Nancy Backus at (651) 481-9548 or nbackus@deltamanagement.us. You can also visit our newly updated, client friendly website at www.DeltaManagementGroup.com. Let’s work together to customize a plan for you, because at Delta, our Client’s interests always come first!