What You Should Be Working on Right Now on Collections

by Veronica Blatt

Today’s guest blogger is Wilson Cole. He is the CEO of BackdoorHires.com and Adams, Evens & Ross, the nation’s largest credit and collections agency designed exclusively for the staffing and recruiting industry. In 2008 he was inducted into INC Magazine’s, “INC 500” for being the CEO of Adams, Evens & Ross, the 307th fastest-growing privately held company in America. Adams, Evens, & Ross has helped more than 3,000 staffing and recruiting firms recover more than $1 billion in past-due debt and is an NPAworldwide Endorsed Program.

With the pandemic sweeping the nation, here is some advice on what you should be doing regarding the collections side.

Reach Out to Your Clients

If you have been working with a company to settle their debt over a long period of time, the best thing you can do is to reach out to them. Let them know that there is still an invoice and see if they can make a good faith payment. Most companies will be able to make these as payroll protection loans are being offered by the government.

Jump on Problem Accounts

In all my experience regarding downturns, the one common aspect between them is that companies having trouble even before the downturn, are going to end up in deeper trouble and evaporating before the pandemic is over. This means that they could end up closing their doors. This is why you should be collecting the dues of problem accounts as soon as possible. Another reason why you should be quick is due to the payroll protection offered by the government.

The payroll protection loans offered by the government will help not only the companies that are going to struggle during the pandemic, but also those who already were struggling before it. Companies that were never able to take government loans will suddenly be able to take those loans. This means that they will suddenly have several months’ worth of payroll on their laps. That money isn’t going to last very long, so you have to make sure that you’re at the top of the list of people they have to pay with that money. (The original money for payroll protection is already committed, but more may become available in the future.)

Check Whether an Account is a Problem or Not

If you’re not sure whether an account is a problem or not, AER Collections is offering free credit checks on any company that is 45 days past due. This will let you check how they’re paying their bills since September 2019. If your debtor was having trouble paying bills in December, then you’re going to have a much more difficult time collecting from them.

The Economy Will Take Time to Recover

I mentioned that a large amount of money was pulled out of the economy because of the pandemic. The economy will be slow to start, and it could take around six months for the economy to resemble anything normal. It will take its toll on many businesses and those struggling will not be around by the end of the downturn.

Please call me at 800 452 5287, extension 6578 if you’d like to discuss your collection needs.

Recruiting Strategy: How to Avoid Credit Collection Mistakes

by Veronica Blatt

image of folders for past due recruiting feesToday’s guest post is courtesy of Wilson Cole from Adams, Evens & Ross, a collection agency specializing exclusively in the recruitment and staffing industry. Back in 2003 Wilson Cole, the President and Founder of Adams, Evens & Ross, was asked to produce a video series detailing the most common credit and collection mistakes that staffing and recruiting firms make when working with their clients. The finished product was a series of short, to-the-point videos called The Seven Deadly Mistakes That Staffing and Recruiting Firms Make And What You Can Do To Avoid Them. In 45 minutes you will learn what are the most common pitfalls that clients make and you will also learn a system that will help reduce your risk and make sure that you get paid in a timely manner. DISCLOSURE: Adams, Evens & Ross is an NPA Alliance Partner. NPA members receive discounted services from AER.

Have you ever had to collect a recruiting fee owed to you by a client? Ever experienced ‘temp-napping’ or a ‘back-door’ hire? Part of your recruiting strategy needs to include protecting yourself from clients who don’t pay the fees you are owed. In this video, part one of a seven-part series, Wilson discusses how including a personal guarantee in your fee agreement can help you avoid the need to resort to collections. Personal guarantees are most effective when your client is a small company that is less than three years old. If you like this video, you’ll find links to the remaining six videos on the Adams, Evens, & Ross YouTube channel.

Well-written fee agreements are an important part of any recruiting strategy. Make sure your agreements ensure you get paid for the work you do!

Please share this blog post with other recruiters you know!