[Regium]

Hi DF

What are some tactics you use to collect from those merchants who refuse to pay -- considering the business is open and they are generating revenue (which means the percentage of revenue sold per the contract is still active)

Of course, there's only so much you can do, but would like to hear your thoughts on this.

[FundingCzar]

Call their landlord/bank/references and say the following, "Hey this is X with X, and I just wanted to see if you hare having any better luck getting paid than I am by client x ? The client stole from me and I just wanted to make sure you don't get burned as well. Maybe its a simple mistake or oversight in accounting, could you help me reach the client,he has been dodging my calls. I just don't want to see you get robbed as well."

1 of 2 things happens, either the client absolutely shuts down and you never get paid, or you start getting payments again. It works about 60% of the time when you keep calling their references, it makes it back to the client. When you start calling people's references and clients its puts a lot of pressure on them, obviously if they are broke it doesn't matter, but its a strategy.

The conversation with their references doesn't have to be confrontational, just that you are concerned and worried.

[Lmonus]

Hi DF

What are some tactics you use to collect from those merchants who refuse to pay -- considering the business is open and they are generating revenue (which means the percentage of revenue sold per the contract is still active)

Of course, there's only so much you can do, but would like to hear your thoughts on this.

Is the merchant replying to your emails / Phone calls?

If so, pitch them on something ridiculous such as $5-10 per day to keep the merchant active with your company. On the other hand you can also request they send you a wire of around 2-3% to keep them out of default giving them breathing room for the rest of the month. Do the same on the next.

If the merchant isn't answering calls / Emails, then thats a different story and you might be in trouble.

As long as the merchant is in contact with someone from your company on a regular basis you should be ok - Venmo? Square? CC Payment? Anything will work at this point.

[Michael I]

one of my old merchants did something like that and retail capital (now known as credibly) had the marshals go down and seize his register and credit card terminals , smack in middle of dinner service . yelp actually had some one post pictures of it . I believe i had like 30 calls from the merchant within 20 minutes .

[CreditGuy]

Call their landlord/bank/references and say the following, "Hey this is X with X, and I just wanted to see if you hare having any better luck getting paid than I am by client x ? The client stole from me and I just wanted to make sure you don't get burned as well. Maybe its a simple mistake or oversight in accounting, could you help me reach the client,he has been dodging my calls. I just don't want to see you get robbed as well."

Don't do this. Stealing and robbery are crimes. Unless the borrower has actually been convicted of these crimes against you in a court of law, you are committing slander and creating legal liability for you and your company. Always telling the truth is a good general rule, but becomes even more important when trying to collect a debt. Making false or misleading representations in the course of attempting to collect on a debt is a violation of FDCPA.

[happysales]

If the merchant guaranteed the loan personally and tells his bank to stop the payments or changes his bank account quickly could criminal charges be filed? Seems like fraud or grand larceny.

[ridextreme]

If the merchant guaranteed the loan personally and tells his bank to stop the payments or changes his bank account quickly could criminal charges be filed? Seems like fraud or grand larceny.

No. It's a civil matter. Only if a customer sent fake bank statements, it's criminal, but no one ever peruses it.

[Collection Specialist]

You undertake me and problem solved.

[happysales]

Thanks for the input ridextreme-too bad though-being arrested in front of the neighbors and the possibility of jail time would probably make merchants open their wallets fast.

[Michael I]

You undertake me and problem solved.

Mitch does have a good reputation for getting it done .

[Collection Specialist]

Thanks for the kind words.