We contacted a mason who owed our client, a large building supply company a considerable sum. He told us that he could not pay his bill, because he so had customers who owed him money and had not paid him.

We asked the mason about his delinquent customers, and realized that he was just too busy, especially in the warm months, to focus on his accounts receivables and had many customers owing him for over 90 days. He was caught between a rock and hard place because he was too busy in the warm weather to collect money owed to him, and too broke in the winter months to pay his bills.

We asked him if he would consider hiring a collection agency to improve his cash flow, and he agreed that it would be a good idea.

For our building supply company, we put together a temporary payment plan with the mason to make smaller payments to show good faith, and then the mason hired us to collect his overdue accounts, with the understanding that he would use the first proceeds from debt we collected to pay off the building supply company.

After three months of working with the mason on bad debt recovery, we were able not only to settle the large owed to the building supply company, but we were able to return a substantial sum to the mason. We also worked with the mason beyond debt collection, and helped him set credit standards, put together a customer contract, and streamlined his billing practices. 

The building supply company has also agreed to work with the mason again, and the mason can continue to sell new customers and grow his business. 

Want to reduce bad debt in your business? We can help!