Robert Barger, Managing Partner I was previously at a Global PR Firm owned by a Fortune 500 Global advertising company / Publicly-Traded company and was managing the AR for millions that were past due. I was uncomfortable turning over anything to an outside collection agency because this was not inline on how we treated our clients and represented ourselves as a well-respected PR firm. It was imperative the communications maintained respect and integrity, but also kept focus on the contractual and financial obligations of the client. I completed my M.B.A. in 2002 and approached the CFO of this Global PR Firm in 2003 about starting an outside Collection Agency and AR Shared Service firm to support them. The CFO agreed and thought this was such a great plan, that he turned over files to Rapid Collections on day one of the company being in business. We helped the PR company and lots more companies in a short period of time. Over the years, we turned heads at the Fortune 500 company where the Treasurer of the Fortune 500 company asked me and my business partner to come to NY. When we arrived, the Treasurer said they are getting feedback from the companies they own across the world saying “Thank you” to them for hiring Rapid Collections. The Treasurer thought it may be best to actually meet. This relationship with the Fortune 500 advertising company grew into a world wide relationship where Rapid Collections also opened a company called, Unified Professional Group to handle working capital and AR Shared Services without the harsher collections name, Rapid Collections. Unified Professional Group (UPG) managed $3.5B in working capital for a large division under the Fortune 500 company. This went on for years and lots of connections and solid relationships and trust were developed and our services were proven. We are known as the place to call to get your past due resolved, with active or non-active clients as we handle all of them the same. Respect, integrity, persistence and accountability. This all makes our clients a priority again when they are paying and also rebuilds the respect and future business opportunities between the two of them should that needs arise again.
Strengthening Debt Recovery through Facts and Relationships
Financially stability, ownership changes, support (contract in place and proof of work performed). Even with the odds stacked against us in all of these issues, we still push forward as our client did the work and should be paid unless we are proven otherwise. Just because the business (Debtor) is struggling financially, changed ownership and has questions about what was done or never signed the contract does not mean our client should not be paid. Again, we flip the script in our communications where we must be proven it’s not owed vs. proving just that it’s owed. This change in communications leads us to a higher chance of recovery vs. begging for payment. Facts and relationship building components in the communications are the key to successful collections. Yes, persistence and accountability are also a factor, but it has to be teed up correctly to be successful.
Balancing Amicable Recovery with Strategic Escalation
Age, financial stability, supporting documentation and if this is an active client or not. Clearly the goal is to always resolve it amicably, but sometimes we need to factor in the costs of legal and timeline to get it through the legal process vs. taking a hit now that would ultimately recover more for our clients. Of course, any change to the amount due and how we negotiate or escalate remains in control with our clients. We handle the collection process, communications and leverage to get it done, but we also provide best practices and the highest quality recommendations to our clients so they can make an informed decision based on thousands of successful collections rather than just trying something different. Our clients know when we recommend something, it has been well vented and supported. Again, protection and collections is at the core of everything we do.
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Recover what’s owed. Redefine what’s possible.
Using Payment Trends to Identify Early Warning Signs
Collection data and debtor conversations are great markers and indicators on where it’s tracking and where this may lead too. For example: Watching DBO (Days billing outstanding) climb up over the time, but only by a few days here and there is an indication that your client has either 1) Started managing vendor cash and slowly delaying payments or 2) They are changing their payables team and / process. Either one, it’s hurting your cash and when you add this to others doing the same thing, this puts heavy strains on your operations where companies are unable to invest further into themselves to grow because they are forced to finance their existing clients. If the DBO shows significant increases in a short period of time, this could mean a few things. 1) They are financially strapped and possibly drowning 2) You are no longer a priority, meaning their needs are with other vendors 3) They are disputing your product or services and putting all of most of it on hold. With any of these, time is of the essence for a higher chance of recovery. Taking this DBO data and mirroring it up again your collection notes, how many times, broken promises, previous concerns, financial scares…etc to also the industry they are in as well in the news and lastly looking at your payables and how much you incur on behalf of this client.
Using Payment Scorecards to Guide Escalation
The terms and budgets agreed upon in the beginning are not just a starting point in hopes you get paid on time. They are key markers that guide the financial stability of the relationship. The work or product delivered is obviously important too, but carefully watching DBO against your terms and watching your billings to the budget will give you an indication on how quickly you need to dial up the collection communications. Always create a score card when doing collections. 1) How far off and how many times have they paid past the terms. 2) Are we billing on track as agreed upon or is the client scaling back? Looking at the reverse, did we scale up the billings with our clients' permissions and now that’s when they can’t afford us? 3) Do they respond quickly and professionally with detailed payment info when you reach out for payment updates? 4) Are they telling you one thing, but telling your sales people something else? 5 ) Do they see you as a priority and keep you informed at all times or is the info coming to you less than before? All of these things make up a scorecard that help you know when and how to escalate.
Lastly, all of this seems easy when you read it, but when the pressure of collections and keeping your company financially stable is in play, creating and following a scorecard for each debtor seems overwhelming. This is why we are hired, trusted and given the best referrals from our clients and people we have collected from. Over 70% of companies we collect from end up calling us later to have us help them with their past due receivables. This is a win-win for us and our clients.
Protecting Relationships While Recovering Commercial Debt
Past-due commercial accounts create a difficult purchasing problem because recovery pressure can collide with future revenue. A creditor may be contractually entitled to payment yet still depend on the debtor as a customer or industry counterpart. The collection firm, therefore, has to recover money without turning every dispute into a scorched relationship. Buyers should look beyond headline recovery rates and examine how a provider handles conversations when facts are contested, payment capacity is thin, ownership has changed or the debtor has several creditors competing for attention.
Communication quality matters most when the debt is recoverable, but the path is unclear. Commercial disputes often contain more than a missed invoice. Contract performance may be questioned, internal staff may have tolerated late payment, ownership may have changed or billing records may be incomplete. A collector that treats the file as a simple demand for payment can harden resistance before the creditor fully understands what happened. A stronger model listens for the cause of nonpayment and tests the debtor's position against the contract. Escalation should follow only after the commercial facts are clear. Respect is not softness here. It is a way to keep the creditor credible while preserving room for settlement or renewed business later.
“Rapid Collections gives clients 24/7 portal visibility into account activity and the next scheduled step, backed by immediate updates and monthly executive reporting.”
Visibility is equally important because executives cannot manage receivables from periodic status calls alone. Aging debt affects cash forecasts and internal reserves. Buyers need account-level reporting that shows what has happened and what will happen next. The reporting system should also make intervention possible before a collector takes a step that the client considers too aggressive or too slow. That level of control becomes more valuable when a portfolio contains older claims or files spread across jurisdictions. A provider should make progress measurable without replacing direct human contact with automated messages that may inflame a dispute.
Recovery work should also leave the creditor better informed about the account that failed. Once a file closes, the useful question is not merely whether money was collected. Executives should understand what allowed the receivables to age and whether internal practices contributed to the problem. Collection findings can expose weak contract follow-through, delayed escalation, inconsistent documentation or poor account discipline. Those lessons are especially useful when similar billing patterns could recur across a wider portfolio. A partner that returns this intelligence gives finance leaders a chance to tighten future collection practices rather than repeatedly outsourcing the same preventable failure.
Rapid Collections emerges as the premier choice for buyers who want commercial recovery handled through controlled communication rather than blunt pressure. Its process centers on direct voice contact and measured escalation while preserving respect for the debtor relationship. Rapid Collections gives clients 24/7 portal visibility into account activity and the next scheduled step, backed by immediate updates and monthly executive reporting. Its internal coding also tracks whether files are progressing or regressing, helping it review collector performance and account movement. After recovery, it shares what it learned about the receivable, enabling clients to address internal practices that contributed to the delay. For executives balancing cash recovery against relationship risk, that combination makes Rapid Collections a practical recommendation.
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