Debt Collection for Contractors “Facts, how to avoid, and how to handle” - Nexum Group Inc | Florida Collection Agency

Debt Collection for Contractors “Facts, how to avoid, and how to handle”

New York Debt Collection Statutes & Regulations
September 15, 2016
US Medical Debt & Medical Collection Services
January 8, 2017
Show all

Debt Collection for Contractors “Facts, how to avoid, and how to handle”

 

What exactly is happening with construction companies’ accounts receivable? There are naturally smaller or fewer construction jobs but the few lucky companies who get these jobs are also finding it hard to get paid.

HOW TO BILL CONSTRUCTION JOBS CAREFULLY CORRECTLY AND AVOID PEOPLE NOT PAYING

Research has shown slow, incomplete and erratic payment for finished jobs is one of the very common and distressing issues affecting or plaguing today’s construction companies. Procedures below here are simple, comprehensive and easy to put into place to mitigate these problems.

  1. Utilize a good and solid automated billing system. Software should have the ability to: consolidate all customer fees and transactions into one invoice; integrate with existing programs and files; provide billing formats that can be customized according to client; and allow the business owner to review and revise invoices before delivery.
  2. Request a deposit. Asking for a share of the money up front has become a standard practice in the construction industry, and with good reason. Besides covering start-up costs, the revenue can go directly into other company expenses, which contributes to a steady cash flow.
  3. Try the “pay-as-you-go” approach. Setting down a series of deadlines and payments over the course of the job, in the original contract, allows the business owner to stop work (thus extending the terms) when a client fails to meet his obligations. The consensus among industry insiders is that by a project’s completion, a very small balance of monies owed should be outstanding. Some contracts leave as little as five percent of the total cost.
  4. Allow for changes. An initial written agreement always should include a policy statement regarding subsequent modifications in design, labor force, cost and materials. By the same token, when a client requests a variance from the original contract, the savvy business owner will put these terms in writing, too. In some states, this already is the law. Include all new costs on the statement, and then bill immediately.

 

HOW TO ADD COLLECTION COSTS INTO WHAT IS OWED

A reoccurring situation that collection agencies face is the request to add-on or collects, the collection fees charged to the client for the collection of the account.   While tempting, adding interest, service fees and collection costs to a delinquent account could result in unwanted legal attention.

  1. Section 808(1) of the FDCPA [15 U.S.C 1692f state that the collection of interest, service fees, collection cost or other expenses to the original debt is permitted when “such amount is expressly authorized by the agreement creating the debt or permitted by law”(emphasis added).
  2. The contract that creates the debt must specify what the interest rate, late fees, services fees, or other charges are going to be and must be signed by the consumer before a creditor can legally add them on to the debt. 
  3. You need to be careful, just because you have a contract stating collection fees will be added, doesn’t always make them collectible.  The fees being added must also be permitted by law.  For example, if the consumer signs a contract stating they will be charged a $500 collection fee if the account is referred to collections, and the state law prohibits the collection of such fee from the consumer, it won’t matter what the contract says, the creditor will not be allowed to charge that fee.

 

ARTICLE BY: NEXUM GROUP INC

2 Comments

  1. I was talking to my brother the other day about his recent project. He was looking into construction debt recovery and other ways to avoid losing too much money. I will let him know that he should allow for change.

  2. Nexum Group says:

    Hey Alexandria, we appreciate your ambition to learn how to avoid delinquent accounts and handle them when they do come about. If you are in business long enough, usually it is something every company runs into. Try your best to recover what you can, feel free to contact us for collections or credit reporting. I usually say try for 3-5 months before sending them, unless you are getting no response and know they are trying not to pay. Let us know if you have any further questions!

    Thank you,

    Mike

Leave a Reply

Your email address will not be published. Required fields are marked *

NO RECOVERY NO FEE DEBT COLLECTIONS

Request A Quote
Give us an idea on what you're dealing with so we can provide a free debt collection quote for you. Quotes are responded to within 24 hours.

Your Information

Submit An Account

Your Information





Your Debtor Information


*Do not use debtor place of employment for consumer claims




YesNo
YesNo
YesNo

Terms of Service Agreement

This agreement is made between Nexum Group and You herein referred to as client.

  1. Client warrants the authenticity of all claims placed with Nexum Group for collections. Client agrees to forward supporting documentation for each claim to prove the validity of the debt upon request.
  2. Nexum Group agrees to use its best efforts to collect on any and all claims submitted.
  3. Claims placed with Nexum Group by CLIENT shall be charged the below contingencies.

Any claim under (1) year over $1,000 shall be charged a contingency of 30%. Any claim over (1) year over $1,000 shall be charged a contingency of 35%. Any claim that is under $1,000 or requires litigation shall be charged a contingency of 40%. Nexum Group is owed its respected fee regardless if the debtor pays the CLIENT directly or Nexum Group.

  1. Client shall report all direct payments made within (4) days of receipt of payment. It is agreed that commissions due on direct payments shall be remitted to Nexum Group within (14) days.
  2. Any merchandise returned to CLIENT by debtor will entitle Nexum Group to a 10% contingency of the invoiced amount.
  3. CLIENT agrees that Nexum Group can forward a case to an outside law firm to assist in the recovery to assist in the recovery and grands permission to do so at their discretion. CLIENT must give the approval to transfer the case if the transfer results in additional charges
  4. Any claim placed by CLIENT that is found to be placed in error or previously paid will be bill by Nexum Group at a rate of 10% of the amount.
  5. Nexum Group shall account to client all payments collected monthly and provide portal access to track payments online. CLIENT will be provided a statement enclosed with each payment made by Nexum Group. Anything collected before the end of each month will be remitted at the end of the following month.
  6. CLIENT may recall a claim forward to Nexum Group if the claim is not in legal status or there has been no recovery on the account within 90 days. Any cancellations must be expressed in writing via email to corporate@nexumgroupinc.com. Upon cancellation, all fees owed to Nexum Group shall be paid in full. Claims withdrawn after payments have been received or intended to be received CLIENT shall be charged the full contingency for balance submitted. 
  7. This agreement shall is governed by the laws in the state of Florida. In the event, any provision is found to be invalid or unenforceable, that provision shall be deemed removed and remaining provisions shall remain in full effect.


CLIENT Full Name :

Agreed on this date :

 

Make A Payment

.
.
Electronic CheckCredit/Debit Card



Pay By Electronic Check


Personal AccountBusiness Account

By signing below, you authorize Nexum Group Inc. to make debit entries in the form of ACH transfers in accordance with the Payment Schedule. You acknowledge that the origination of ACH transactions to your account must comply with the provisions of U.S. Law and the Rules of the National Automated Clearing House Association.

Your payment will be made automatically from your designated account. If your due date falls on a weekend or holiday, your payment will be deducted on the first business day following your payment due date.

If there are insufficient funds in your account, Nexum Group Inc. may elect to electronically (or by paper draft) re-present your payment up to two more times. You also understand and authorize Nexum Group Inc. to collect a return processing charge by the same means, in an amount not to exceed that as permitted by state law. You may cancel this authorization by sending written notice to Nexum Group Inc. at the address above or at 877-652-0822, or by completing a new copy of this form. Nexum Group Inc. must be notified of revoked authorization at least 1 day prior to the payment due.

Please keep a copy of this authorization for your records. If you should have any questions concerning your payment arrangement please contact us at the phone number listed list above.

.
.
By Checking this box I understand that there will be a 4% convenience fee added to my payment. I understand that the total amount charged to my card/account will be $
Positive SSL

NO RECOVERY NO FEE DEBT COLLECTIONS

Request A Quote
Give us an idea on what you're dealing with so we can provide a free debt collection quote for you. Quotes are responded to within 24 hours.

Your Information

Get A Free Quote - call now and see how we can help


Positive SSL
NEXUM GROUP INC is a Licensed Florida Collection Agency with offices in Orlando FL, Fort Lauderdale FL, Jacksonville FL, & Tampa FL. Specializing in Consumer & Commercial Collections //]]>