A commercial collection agency plays a vital role in helping businesses recover outstanding debts from other businesses. Kinum’s expertise lies in managing the delicate balance between aggressive debt recovery and maintaining professional relationships.
Commercial Debt Collection Process
- Kinum has a dedicated commercial collections division with highly experienced business debt collectors.
- If we do not collect, we charge nothing.
- Over 80% success rate on viable claims. All debts are managed using our secure online client portal.
- There are several federal and state regulations to follow even when collecting your own money. We adhere to all government laws, thereby reducing your business risk.
The process typically involves the following steps:
- Initial Consultation and Information Gathering: Clients provide detailed information about the debtor and the outstanding debt. This includes contracts, sales agreements, and documented correspondence. This step is crucial for understanding the context and background of the debt.
- Verification and Demand Letter: We verify the contact information and send a demand letter via email, fax, and mail, generally within one business day. This letter serves as a formal notice to the debtor regarding the outstanding debt and informing that this debt is now being pursued by a professional collection agency. Things have got a lore more serious now.
- Telephone Communication: The primary mode of communication is through phone calls. The debt collector engages the debtor in conversations to understand the reasons for non-payment. This approach helps in formulating a tailored strategy to recover the debt.
- Research and Strategy Development: We conduct thorough research on the debtor’s business (background and credit check), including its financial health, business prospects, and any personal guarantees. Based on this information, a customized recovery plan is developed.
- Persistent Follow-Up: Kinum Inc. is relentless in its follow-up efforts, making multiple calls at different times of the day to reach the debtor. We avoid automated systems, relying on the expertise and intuition of experienced debt collectors to determine the best times and methods for making contact.
Success Rates and Expertise
Kinum Inc. boasts an impressive 80% success rate on viable claims, highlighting the effectiveness of their tailored and persistent approach. This high success rate is attributed to the extensive business experience of our debt collectors and legal team.
Legal and Non-Legal Steps
Non-Legal Steps
- Negotiation and Mediation: A significant part of the debt collection process involves negotiating with the debtor to reach a mutually agreeable settlement. This can often resolve the issue without the need for legal action.
- Credit Reporting: We may report the delinquent account to business credit bureaus, which can incentivize the debtor to settle the debt to avoid damaging their credit rating and ability of business to take loans in future.
Legal Steps
- Litigation: If non-legal measures fail, Kinum Inc. has an in-house pre-legal team before the actual legal process starts. We also have a national network of lawyers that enables us to file the case at the debtor’s local jurisdiction.
- Judgment Enforcement: Once a judgment is obtained, the agency can take further legal steps to enforce it, such as garnishing wages, placing liens on property, or seizing assets.
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Advantages of Using Kinum Commercial Collection Agency
- Expertise and Resources: Kinum team includes specialists with deep knowledge of business operations, contracts, and debt collection laws, providing a strategic advantage in recovering debts.
- Cost-Effectiveness: We operates on a contingency basis, meaning clients only pay a fee if the debt is successfully collected. This aligns the agency’s incentives with those of the client.
- Ethical and Professional Approach: Kinum prides itself on maintaining ethical standards, avoiding intimidation tactics, and focusing on professional negotiation to recover debts.
Benefits for our Business Clients
- Improved Cash Flow: Recovering outstanding debts can significantly improve your cash flow, allowing you to reinvest in your business and grow. Free up time of your employees, let them do what they were hired for.
- Reduced Financial Risk: By reducing the amount of outstanding debt on your books, you can lower your financial risk and improve your creditworthiness.
- Increased Profitability: Improved cash flow and reduced financial risk can lead to increased profitability for your business.
- Peace of Mind: Knowing that your outstanding debts are being handled by a professional collection agency can give you peace of mind and allow you to focus on running your business.