Manufacturing Collection Agency Services
In-House Receivable Services, or IRS, provides British Columbia and Alberta collection agency services for manufacturers to recover overdue manufacturing debt. Our affordable contingency (No Collection – No Fee) rates are sure to improve your bottom line and speed up cash flow, while reducing the risk of bad debt write offs. Since 1997, IRS has a proven track record of fast returns on manufacturing and commercial debt collection.
IRS specializes in commercial debt collection. Our commercial collectors know the complexities of collecting B2B, or corporate debt collection. Unlike consumer debt, companies can quickly die, be sold, or go out of business. BC in particular has an added risk.There is no Bulk Sales Act in British Columbia, which means a company can sell the assets of their limited company and leave unsecured creditors without a remedy for debt collection.
In BC and Alberta there is a 2 year statute on initiating legal action. In BC and Alberta you must sue a consumer or commercial debt within 2 years from date of last payment, or acknowledgement of debt. This is why many debtor companies will use stall tactics to take advantage of the 2 year statute and leave unsecured creditors with no legal means of collection.
Manufacturing companies are facing the constant threat of increased global competition, as margins are squeezed and the cost of carrying accounts receivables are steadily increasing. The need for reducing AR days outstanding (DSO) has never been greater. Many manufacturers have resorted to factoring their receivables, which further deteriorates their profitability. The best solution is to tighten the reigns on your receivables and seek professional debt collection.
Another way to reduce bad debt risk is proper credit screening and a solid credit agreement that protects your position. IRS offers credit screening services and we can review and assist you in creating a credit agreement that will increase your odds of collection.
Many manufacturers provide customers with a line of credit to increase sales. A real problem can develop when the sales department overrides the account receivable department and extends credit to a very risky customer. This is probably the biggest cause of manufacturing bad debt. However, there are creative ways to limit risk when extending credit to a customer with poor credit. At IRS we are well aware of the pitfalls and solutions to limit your company’s exposure to a potential bad debt. IRS is not your typical collection agency.
Need a Commercial Collection Agency?
Give us a call and one of our collection experts can answer any questions about collecting manufacturing debt and provide you with solutions. We also offer a free, no obligation consultation on manufacturing and commercial debt collection.