This likely leaves you with little time for other things that come up. Something you likely don’t have time for is collections.
Dealing With Collections In Your Lawn Care Business
Collections are necessary for any business and managing the process takes finesse. You don’t want to be too aggressive and push your customers away, but you also need to get paid so you can stay in business.
The balance can be tricky, and that’s where a collections company can help.
CLIP Software has partnered with A.R.M. Solutions for our software and lawn care companies. A.R.M. takes away the headache of collections, helps us recover our money, and only makes a small fee for it.
They do things a bit differently than the typical debt collections company. A.R.M. keeps the contact light in the beginning stages before moving on to more traditional communication.
We always go through the first 90 days ourselves by making calls and sending emails. Once it hits the 90 day period, the unpaid account goes straight to A.R.M. Solutions.
We don’t have the time or expertise to deal with accounts that are that far past due, but they do.
A.R.M. offers a flat-fee system that only charges a flat fee per account no matter how much money is collected. A.R.M. works to assist customers in finding a solution to their past-due debt. This is meant to help them resolve their debt, not just obtaining debt. They want your customer to stay your customer, just like you do.
Additional benefits of partnering with A.R.M. Solutions
- Lower Costs– A.R.M.’s “Flat Fee” Collection Program works out to a cost less than 6%, with NO commissions. That’s 1/5 the cost of traditional collection agencies!
- Increase Recovery Rates− A.R.M. Solutions averages over 42% recovery!! This exceeds the national average by over 300%. Ask about our No-Risk Performance Guarantee!
- Increase Your Cash Flow – All payments go directly to you, significantly increasing your immediate cash flow.
- Retain More Customers − A.R.M.’s diplomatic approach allows you to resolve customer service issues and retain more customers.
- Maintain 100% Control of Your Accounts – You maintain full access to current standings on all accounts through A.R.M. WebView™, our 24/7 secure web portal. And, you may intervene at any time, on any specific account to preserve client retention.
Lower Your Costs with A.R.M. Solutions’ Flat Fee Collection Program
Many companies hold off on turning accounts over to a collection agency to recover past-due accounts because the cost is so high. The first option is to have your internal resources to try to recover aging accounts. At the same time, new incoming aging accounts also need to be addressed. This stretches your internal resources and dilutes the efforts of your team.
The last resort is hiring a traditional collection agency to work on a contingency basis that charges a 25% to 50% commission. By doing so, you lose control of your customer relationships and there is a higher potential for them to run straight to your competitor.
We may have the answer you’re looking for. A.R.M. Solutions’ “Flat Fee” Collection Program charges a low fixed rate that averages less than $10 per account, regardless of the balance size. On average, that works out to a fee of less than 6%, or 1/5 the cost of a traditional collection agency.
A recent study by the American Collectors Association (ACA) shows that internal collection efforts lose over 76% of their effectiveness after the 60th day. By entering the process earlier in the A/R timeline, A.R.M. Solutions provides a diplomatic 30-45 day “pre-collection” program that reduces your costs by 50% to 75%. This allows your team to focus on accounts earlier in the receivable cycle when they are most likely to respond. This results in fewer accounts moving into the collection phase, lowering the cost of your overall collection efforts.
Statistics show that your internal A/R costs accumulate over time, while internal collections efforts are most effective during the first 60 days. A.R.M. Solutions’ low-cost Flat Fee Collection Program allows your team to focus on this “sweet spot” for recovery, while we systematically pursue collection on older accounts.”
A.R.M. Solutions Flat Fee Program Increases Your Recovery Rates
A.R.M. Solutions averages 42% recovery rate on past due accounts, while national statistics indicate that collection agencies average only 14%.
Typically, collection agencies will sort through your database and work on the higher balances first. A.R.M Solutions treats every single account − regardless of the amount owed – exactly the same. We don’t cherry-pick which accounts we want to work on. Remember…in this program, we don’t charge a commission!
Our Flat Fee Program, gives you the opportunity to review and approve each correspondence that will be sent out to your database. Once we have your stamp of approval, the first written demand on A.R.M. Solutions’ letterhead goes out to each of your accounts within 24 hours.
Their third-party representation brings many clients to action. Slow paying customers often just need to be “nudged” rather than hit over the head with traditional collection agency tactics. A.R.M. has demonstrated time and again that a series of diplomatic and strategically timed payment reminders from a licensed 3rd party results in a dramatic response by customers who ignored previous notices from your organization.
Consider the benefits of partnering with a collection company, and say goodbye to the non-paying customer headaches of the past.
Come here how A.R.M. Solutions can make sure you are paid the money you’re owed on Thursday, July 16 at 1 PM CST.
If you want to learn more, check out their Lawncare and Landscaping page.