Debt Collection Agency for Building Materials Industry
Collection Agency for the Building Materials Sector
Companies that are involved in the building materials sector have been profitable and reliable businesses for the past 150 years. Companies that provide the steel, wood, stone, cement, and materials for construction companies and innovators have fueled the growth of the world and enabled a massive global economy. Suppliers to the construction industry have come under increasing pressure however, because of risks associated with the construction industry. As the two sectors are heavily reliant on each other, any drastic activity in one will affect the other. The mass closure of construction companies and home developers in the great recession caused a ripple effect that put many suppliers out of business. Many building supply companies failed because they had loaned out on materials they sold to construction companies that we're unable to pay their invoices. Collecting revenue in this sector is vital to the survival of any construction supplier.
Many companies in the building materials industry still face challenges however, when trying to collect payment to this day. A reason many companies fail to collect in this sector is they fail to understand the industry and its relation with developers and construction and how there may be multiple actions that should be taken to collect a debt. Most legislation regarding development at the federal and state level allows for specific remedies and activities that building suppliers can take to secure a security interest on the property they are being used on. Often known as a mechanics lien or construction lien, building suppliers can typically file a claim against a property they provide materials too. Many supply companies think this will force payment for the invoice only to learn that the project may not be finalized for many years, and the property will likely not sell anyways in the near term. In addition to this, most suppliers do not have a primary position leaving them unable to foreclose to collect the lien.
Many companies will also try to rely on filing a bond claim only to learn that the bond is no longer valid, or the bond amount only covers a fraction of the balance. Many suppliers then believe litigation is their only other option but are reluctant to file because that may create issues upline in the contract between the developer and the contractor, which will delay payment even further to the point the debt should not also be considered on the books. Companies that are typically successful in this industry understand that communication and negotiation is a much more effective solution. Instead of focusing on growth and expansion, many companies waste resources trying to do this internally. This often yields to low collection rates and delayed recovery times. Utilizing a third party debt collection agency that specializes in recovering these types of debts is vital to successful collections.
Fortunately, however, the utilization of a third-party debt collection agency can provide businesses in the building materials sector the protection and relief that they need. Our agents are trained to utilize various tools when addressing these issues. The agents handling a claim will focus on identifying the cause of the debt, explore remedies to cure the problems, and, when appropriate, use the proper leverage to incentivize the debtor into resolving the matter. Unlike other agencies that use cookie-cutter demand letters and scripted agents, often in overseas call centers, our agents thoroughly investigate the claims to ensure that no stone is left unturned in securing payment. When a company still refuses to address the obligation, we have a network of collection attorneys that will not only dispute the claim but collect through garnishments, liquidations, and other court remedies that force a recovery.
In addition to recovering the debt, other factors make selecting the right company when using a collection agency. On top of being taught collection tactics, our agents are also versed in business etiquette and conduct to ensure that our clients are being represented professionally and that their customers are being dealt with respectfully. In times where anyone can write a yelp or google review, manufacturing companies must be represented by a collection agency that conducts business professionally.
If you are a building supplier that is currently faced with the problem of collecting on a delinquent debt, contact our office to speak with a specialist to discuss your collection needs. Unlike other companies that will simply provide a standard quotation and a slick sales pitch, our intake specialist will consult with you to better understand the challenges that you are facing and devise a plan and pricing option that will serve your needs. Your focus should be on the development and growth of your business. The building supplies sector is highly competitive, and allowing our expertise to aid you in the recovery of your past due accounts will not only increase recovery rates but provide you time to devote to your business.