Handling debt recovery is possibly the last thing contractors want to focus on.
Investopedia says the five biggest issues facing small business include:
- Diversifying your client base so it’s not “all your eggs in one basket.”
- Growing the business so it’s not so dependent on the founder/owner.
- Balancing the quality of the delivery and growth.
- Managing owner fatigue.
- The bottom line.
It’s those last two bullets that we’ll tackle in this article. These issues are particularly tough on contractors, who work hard in the building industry every day. The last thing they have the energy to deal with is clients who are slow to pay or simply don’t pay.
Whether the contractor is in the business of residential repair or commercial building, they often struggle to handle past due accounts on top of the work they do.
How could a company like Rocket Receivables help keep your bottom line in the black?
Debt Recovery for the Building Trades
Having the cash to make payroll is a big issue for most contractors just starting out. It’s a balancing act that takes a lot of hard work to resolve itself. While this is a common issue for new businesses, what makes it tougher on contractors is that they work in a physically demanding profession. All the stress of running a business plus physical labor can certainly be challenging.
In many cases, the contractor may be struggling to keep a positive cash flow. Without a regular inflow of cash, it can be difficult to take care of basic business operations. Everything from paying employees and subcontractors to fulfilling purchases orders can fall behind.
When a client does not pay on time, as expected, problems can snowball. And while the contractor wears many hats, that of debt collector is not one that’s enjoyed. Debt recovery efforts are regulated, so a DIY approach is not only stressful, it is not advisable in many situations too. While contractors may know a lot about CAD and city permit rules, they may not understand the regulations inherent in trying to collect on debt.
Rocket Receivables can help you with debt recovery.
That’s why contractors choose Rocket Receivables to handle debt recovery. Here’s how our system works:
- This web-based service allows small businesses to have the same tools big companies have for debt recovery.
- It’s a self-service two-stage debt recovery process that keeps things very affordable for new and small companies.
- It comes with a guarantee that ensures you will make twice as much as you invest in our program.
Interestingly, the national debt recovery rate from professional companies is only 14%. The average debt recovery rate from Rocket Receivables is 56%!
The process for debt recovery includes:
- Stage One – Fixed fee collections for early stage debt recovery. The program is designed to send out the required number of letters to debtors. It also includes a thank you for payment when debt recovery is successful. You can easily control this on our self-service portal.
- State Two – For debt that runs long, the contingency collections process includes a more traditional approach, including access to our attorney network, and calls from our trained professional team. If we don’t collect, you owe us nothing.
Our proven approach focuses strongly on maintaining goodwill in the marketplace; this is something we believe small contracting businesses must maintain. Our job is to help you maintain cash flow while still keeping positive relationships with clients, which is vital to any company just starting out.
Rocket Receivables offers a fair, honest, and transparent service that is guaranteed to get you what is owed. We are compliant with all industry standards, state and federal laws. To request info, contact us.