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06-11-2016, 02:52 PM #6
- Join Date
- Oct 2013
- Posts
- 200
Collecting on MCA Debt
I work on the debt that a specific in house team cannot yield success on and before they would send it to a 3rd party collections agency or law firm. I have a legal background which helps immeasurably because I am able to convey the legal implications to each merchant as any attorney would, but for much less the cost and with a better success rate.
All funds would be paid directly from the merchant to the direct funder whether through bank wire or re-establishing the daily debit and I simply invoice based upon the total amount successfully recovered during any given month.
I am much less expensive than a 3rd party agency or law firm and my results are at the zenith of the industry. On average, my rate of success is 4-5 times greater than the recoveries the MCA space sees currently.
I am an addition to a team, and not a 3rd party collections office. I act as, and am hired as a contract employee, communicating with each merchant directly as a member of the office and funds being paid directly to the office as well. Under usual circumstances when the in house team of a funder fails to collect, they send out to a 3rd party agency to collect upon or litigate. Usually the rate of recovery is very low and when actually collected, they take 30% or more off the top. I don't replace the 3rd party agency but come in before they would receive files. Both the number of defaulted files decreases dramatically as well of the actual cost of doing so. The bottom line is more funds are recovered for much less the cost and the funder has less files to send to a collection agency. This increases their cash flow and decreases write off's.
As stated before, I'm extremely hungry, driven, and self motivated and can offer many references at the highest positions within the cash advance and lending space who will gladly attest to my claims. As a former owner of a collections agency years ago, I am more than aware of what type of employee collects upon MCA debt...young, inexperienced, and most importantly, un-knowing of the MCA space and without the ability to converse at an upper level in both language and knowledge of the law. These skills allow me to deal not only with the merchant, but their attorney or companies who they hire to try and settle debt at a fraction of the cost.
It's analogous to what makes one sales closer better than the other using the same leads. Some simply have the skill sets to excel where others cannot, and I am fortunate to have proven this model for many years within my space.Last edited by Collection Specialist; 06-11-2016 at 03:01 PM.
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