Our goal is to collect your money while enhancing your image!
Note: Please reference our F.A.Q. for more thorough information.
When you have a customer that you can't collect from, what do you do?
Many companies will choose to work their accounts in-house until there are no signs of life left in it, and then turn it over to a collection agency. Turning an account over sooner will increase the odds of succesfully collecting it. It might just sound like a sales pitch, but it's true.
We can help!
Whether your customer has disappeared, refuses to pay, disputes the balance, or if you just don't have the time, resources, or energy to continue to efficiently monitor your past-due receivables, let us at CRB help!
We work on a contingency basis, which means you only pay us when we are successful in collecting your account. If we are unable to recover your account, you still receive all of our collection notes on the file, along with any skip-trace information or any other resources we have amassed in our efforts. There is absolutely nothing to lose!
We collect funds in a professional manner without causing harm to your image or reputation. We understand that you don't want your image in the industry to be harmed by using a collection agency. Rest assured, our collectors are skilled and professional and treat your customers with the level of dignity you would want with someone handling your accounts. Some of our clients turn over past-due accounts very early, and are essentially outsourcing their receivables to us, so we handle each account with diligence and respect for your company's image. We have procedures in place to collect your past due funds, impact non-paying debtor’s business credit, or have suit filed if and when debtors fail to pay or when necessary. For more about our procedures, read below.
The Collection Process
There are many steps that we take in our collection process to ensure everything possible is done to recover your lost receivables.
- Impacting Credit
- Phone Calls
- Skip-Tracing (Investigation)
- In-Field (Face to Face) Collections
- Legal Forwarding
We will start our efforts by sending a letter which asks that the balance be paid in full. After that, we will start making phone calls and sending e-mails or faxes to try to reach your customer and go over the account with them. If we are unable to locate your customer initially, we will do in-house skip-tracing (investigation) to try and find your debtor and make contact with them. We have professional in-field collectors that can also meet with your debtor face-to-face and discuss their account with them, which typically yields a higher collection ratio. Now, if the debt hasn't been satisfied by this point, we can then send your account to one of our attorneys in your debtor's area and file suit. We report our credit information to Experian, so if your debtor does not pay, their business credit will be impacted.
All of this is done with diligence and professionalism, and in a manner that will not tarnish your image or reputation in your industry.
Multiple Solutions for your Receivables
Let us help you succeed!
At CRB, we offer a unique approach to debt collection that is professional, persuasive, and principled. The fundamentals of collections are often overlooked, but we stress them and use them to increase the cash flow for our clients. CRB understands the strain of a credit and collection department charged with changing priorities to meet daily needs.
- Industrial Equipment
- Medical Equipment
- Restaurant Equipment
- Graphic Design & Printing
- Radio, TV, & Billboard Advertising
- Wholesalers/ Distributors
- Food/ Produce
- Banking & Financial Services
- Software Manufacturing
And much more!
We have successfully recovered past-due accounts in the following locations:
Even though we are based out of Dallas, TX, we have collectors that will work hours that accomodate the time zone of the debt.
Understanding and Utilizing DSO
The DSO (days sales outstanding) formula is an easy method to measure how quickly you are turning your sales into money in the bank. The DSO number you end up with is the average number of days it takes from selling your product or service to actually collecting the money on it. Utilizing this simple formula will let you quickly gauge how efficient your accounts receivables efforts are. The lower the DSO, the better your receivables are. A higher DSO means that there is a problem somewhere.
To figure out your DSO, simply take the total amount that your customers owe you for the period (your A/R) and divide this by the total amount that you have billed for the period. Multiply this by 365 (the number of days in the period for this example) and you have your DSO.
For example, let's say ABC Company has $8,000 in A/R still owed to them. The total amount they have billed this period (a year in this example) is $100,000. First, we divide the '$8,000' into the '$100,000' and we get '0.08'. Now multiply '0.08' by '365' (the number of days in this example period), and you will get a DSO of 29.2, which is right on track, considering many companies have net-30 terms.
By formulating your DSO, you will have a better understanding of where you stand with your receivables and if there is room for improvement.