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Answers to Frequently Asked Questions

How is Peak Financial different from other collection agencies?
 
The more we know of your customer’s finances, assets, associations, business relationships, and contact numbers, the better prepared we will be to GET YOU PAID.  Information is power.  Unlike most collection agencies that simply mail a fill-in-the-blank collection demand letter to your customer’s last known address, Peak Financial is one of the only collection agencies that processes each and every collection assignment through a comprehensive “skiptrace” and background search to find a lot more information on your customer than you may already have.  Utilizing the information obtained in our background search, we then contact your customer directly and craft a persuasive demand for full payment by experienced and seasoned debt collection professionals.  Other collection agencies use a very cookie-cutter approach, resulting in poor recoveries.
 

 
How will Peak Financial maintain my reputation and relationship with my customers?
 
The secret is in our collection staff.  Unlike other agencies that have a revolving door of average and inexperienced collection employees, we view ourselves as an extension of your business.  We only employ highly skilled collectors that have the experience and knowledge to secure payment from your customer while preserving your customer’s goodwill to maintain your hard-earned reputation in the industry.  Preserving your customer relationships can only be achieved by hiring the best people.  You simply cannot get that with the average collection agency.  However, although we employ top shelf talent, we can afford to offer our clients very low rates because we recover far more money than most agencies.  

 
How can I check the status of my accounts assigned to Peak Financial?
 
We provide all of our clients with online account access to allow your company to view your accounts in real time which will permit you to review work procedures, place accounts for collection, check status, view payment history, check on invoices, and even enter your own notes on your accounts.   For a Quick-Tour of our online access, click here.


 
What is “skiptracing”?
 
This term evolved from “tracing” for “skip” customers.  Skiptracing is the process of locating contact information on your customer, such as a current and an alternate address and telephone number (very important!), and can include obtaining a person’s place of employment, names and addresses of family members, friends, or ex-spouses that may have location and employment information about the customer (this is critical), as well as locating assets such as property, bank accounts, or automobiles, and much more. 

I already have a collection agency.  How can I improve their performance?

 

Most collection agencies will exhaust their recovery efforts within the first 90 to 120 days of an account being assigned to them for collection, then “warehousing” the account, letting it sit un-worked for months at a time, hoping the debtor one day decides to address the collection account.   In the meantime, your accounts are not being worked and not getting collected.  The solution to make the agency work harder is to limit the agency to a specific time frame for the accounts to be either collected or closed – 6 months is a good time limit.  This allows you to forward the uncollected accounts to a second agency to attempt collection.  It costs you nothing to let Peak Financial attempt to recover the accounts not collected by your existing agency.   You have nothing to lose and everything to gain.

 

 

What is RATE versus RETURN and why is it important to me?

 

Some agencies will “low-ball” their rates just to get a lot of business in the door.  A lower contingency rate does NOT necessarily mean more money to your company. Actually it usually means just the opposite.   While most agencies charge anywhere from 20% to 50% (depending on the type and age of the paper), there are a few agencies out there that will charge rates as low as 18%, 15% or even less, but they cannot possibly work your accounts to their fullest recovery potential at those rates.  All collection agencies have access to the same resources other agencies have, and we all pay the same price for those resources.  A “cut-rate” agency can only utilize a fraction of those resources when operating on such low margins, resulting in less money collected for you.  Let’s look at an example:

 

Agency 1            Receives $100,000.00 in gross receivables from your company. The agency charges you a 15% commission rate, but only collects 10% to 25% of the actual dollars assigned for recovery. Of the $15,000 to $25,000 collected, you pay a 15% fee, leaving you $12,750 to $21,250.  That’s a very poor return!

 

 

Agency 2            Receives $100,000 in gross receivables from your company. The agency charges you a 25% commission rate, but since the agency is more readily able to afford to make maximum use of all the tools at their disposal on every account, they recover 35% to 50% of the actual dollars assigned for recovery.  Of the $35,000 to $50,000 collected, you pay a 25% fee, leaving you $26,250 to $37,500.  A much better return!

 

Let’s compare:          Agency 1 at 15% returns up to $21,250 to you.

Agency 2 at 25% returns up to $37,500 to you.

 

Agency 1’s operating margins are forced so low at a 15% rate that they cannot afford to thoroughly work all of your accounts thoroughly, resulting in poor collections.  Agency 2 is able to better work your accounts thoroughly, leaving no money on the table.  With Agency 2, you get paid MORE MONEY.   It’s simple economics, but a little known fact among clients.  You deserve to get the best rates possible, but don’t be fooled into a bargain-basement RATE that will only result in a poor RETURN.

 

 

How long should I wait before I assign my accounts to a collection agency?

 

The number one mistake companies make is holding on to their past due accounts too long. The longer an account is allowed to remain unpaid, the less chance you or anyone else will have in recovering the money. The following recovery rates are based on national credit and collection statistics:

                                   

Chances of Recovery over time:

           

 0  months late - 94%             5  months late - 59%

  1  months late - 90%             6  months late - 56%

  2  months late - 81%             9  months late - 40%

 3  months late - 70%           12  months late - 19%

 4  months late - 64%           24  months late -   8%

 

Peak Financial’s recovery ability is much greater than these national averages, and our chances of getting you paid are much greater if accounts are assigned within 3 months of delinquency.  In no case should you wait longer than 6 months to assign delinquent accounts for collection.  Older accounts are still recoverable, but the chances of collecting are diminished the longer you wait.

 

 

What experience does Peak Financial have?
 
The founders of Peak Financial have more than 36 years of successful debt collection and agency management experience.  We know debt collection and we know how to positively motivate your customers to pay you. Our skiptracing track record is a remarkable 85% “find” rate on developing good contact information on your customers, with our highly experienced collection agents assisting our clients to recover their unpaid receivables within just 30 to 90 days from assignment.

 
What is the usual approach that other “typical” collection agencies use?
 
With most collection agencies, you simply get a “one-size-fits-all” collection approach to your customer that most often yields very poor results.  Most collection agencies will simply mail a series of generic fill-in-the-blank collection letters to your customer’s last known address, followed by telephone calls to your customers that are typically generated by average or inexperienced “telemarketer-collectors”.  These agencies will not customize their processes to your customer, and they will spend little or no time in skiptracing to locate employment and contact information about the customer, the customer’s assets, telephone numbers, business affiliations, etc. Their skiptracing efforts are typically limited to merely obtaining a credit report, and their phone calls usually result in weak agreements for small installment payments.  Your returns are usually a scant 7% to 14% with the average collection agency.

 
Is Peak Financial more expensive than other collection agencies?
 
Absolutely not!  In fact, our rates are very competitive and even LESS than many other agencies.  Additionally, we work on a straight contingency basis, so there is never a charge to you if we are unable to recover the debt.  No “setup fees” or “cancellation fees”, either.  Since each client’s situation is unique, we tailor a custom rate plan that best fits your business needs.  Call us to describe your company’s collection requirements, and we’ll develop a plan that is right for you.   We guarantee your satisfaction!


What if I already have another collection agency working for me?
 
We wouldn't ask you to stop doing business with your current agency if you're happy with them.  However, as with most businesses, collection agencies perform better when they know they are competing against another agency for the client's business.  To determine if your current agency is performing optimally, we advise that you refer a set of accounts to us and compare the results.  If your current agency is made aware of the comparison, you will likely see an improvement in their performance. 
 

How can I really know how Peak Financial compares to other agencies?
 
To “put us to the test”, we ask that if you are currently using the services of a collection agency, ask the agency to give you a list of the accounts they have not recovered in the past 90 days, or accounts they have deemed “uncollectable”.  Let Peak Financial work on those “uncollectable” accounts and show you just how collectable they may in fact be.   Another option is to split your next set of assignments between your current agency and ours and see for yourself who performs better for you in getting you PAID.


Can I check the status of accounts I have assigned to Peak Financial?

We are one of the few agencies you will find that offers our clients convenient internet access to our debt collection program where you may review the collectors notes of all actions taken in working your accounts to get you paid.  This is a completely free service to all of our clients to keep you informed and up to date on your accounts.  Our online account access will allow your company to view or enter notes on your accounts in real time.  Additionally, you will be able to view work procedures, place business, check status, view payment history and even check on invoices.  Once your company has signed up for our collection services, you will be issued a unique user I.D. and password.  The online access is available from 8:00am to 5:00pm MST.  To take a quick tour of our online features please click the Client Login button above and then select "Sign On".   Under the Client Login tab enter the User I.D. PRO and enter the password NEW CLIENT.  For a step-by-step walk through, please call James Vehslage at 1-800-394-9461.

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Call anytime for more info.

1-800-394-9461

 
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