Brad Jadwin, Principal
Picture this: your company has a lump sum amount pending as account receivable (AR), and your customer is incessantly delaying the payment procedure. You assign a collection agency for recovering the funds, which is followed by a call from your customer who justifies the reason for extending their credit limit. In the process, you realize that the quality of one of your products left the client dissatisfied and triggered the delay in payments.
Although your company might be well-acquainted with recovering mounting debts, a customer confronting you directly about the issue is rare and could have far-reaching consequences. Even if a collection agency successfully recovers your A/R from the disgruntled customer, your company stands to suffer reputational risk, and lose additional clients.
To the collection agency in question, your company’s client retention rate is irrelevant, so long as their commission fees are paid for. This is where A.R.M. Solutions, as a collection agency, is in a class by itself. “Customers hate the interference of collection agencies while paying back to their creditors/lenders and prefer calling them directly, whom they have a relationship with. We strive to establish the direct lines of communication again between our client and their past-due customer in hopes that they forge better customer-client ties,” says Brad Jadwin, principal, A.R.M. Solutions.
An award-winning, full-service collection agency, A.R.M. Solutions offers groundbreaking custom debt recovery services that act as both a collection and a retention tool for CFOs. In an attempt to bring more transparency to the entire payment collection procedure, A.R.M. Solutions has introduced a Flat Fee Collection service that is three times more successful than the national average success rate. With this service in place, A.R.M. Solutions remains as the mediator, while allowing customers to contact, discuss, and pay their balance directly with the organization that they have a past due balance.
To engineer its services, A.R.M. Solutions walks in the shoes of its clients and comprehends the trials and tribulations they face while dealing with the tedious A/R procedure. This hands-on approach is most evident through its Flat Fee Collection service. Jadwin explains, “We have introduced a service that is cost-effective and ensures diplomacy and direct cash f low, while also enabling a dignified experience to the customers of our clients.”
By blending technology with our collection approach and our amazing human capital, we are able to mirror our client’s values. In fact, it is the technology that allows us to make our service so cost-effective
However, the Flat Fee Collection service is just one phase of A.R.M. Solutions’ two-pronged service model. The second phase, aka the Contingency Collection service can be called upon when the bad debt situation requires a more “escalated” collection effort. “In certain instances, the Flat Fee Collection service might not clear the remaining outstanding balances”, says Jadwin, before adding that the Contingency Collection services involves substantial telephone calling, written collection notices, and if necessary even litigation.
This two-stage collection process— known to deliver the highest resolution rates in the market, at one-fifth of the cost of traditional collection agencies—is driven by A.R.M. Solutions’ technological soundness and more than 70 years of combined experience in A/R Management. Aside from the two debt recovery programs, A.R.M. Solutions has built a web portal titled WebView, which allows its clients to manage their customer accounts, receive updates, edit information, and streamline the A/R process at any time of the day. The portal drives further transparency by enabling clients to examine their Flat Fee and Contingency history.
Because A.R.M. Solutions charges a flat fee vs. a commission, this allows businesses to streamline their entire collection process.
The Flat Fee cost is the same no matter what the age or balance of the delinquency. Therefore, our clients can adjust their internal collection strategy to focus more efforts earlier in the timeline where the collectability is higher. The Flat fee collection service includes written notices, live outbound calls, and where possible text communications. Jadwin adds, “By blending technology with our collection approach, along with a special group that makes up our collection team, we are able to provide a solution that lines up with our client’s values.” The uniqueness of A.R.M. Solutions’ collection approach speaks best through a customer success story. A national utility company had a growing problem with delinquencies, both in early and late stages, and had to wait months to collect payments from various accounts. They were calling on accounts that were past due for over five months. After stepping in, A.R.M. Solutions recommended the client focus their internal efforts on past due balances for 90 days. As a result, the client had fewer accounts to call and was able to connect with more of them. If they were unsuccessful, they would then use A.R.M. Solutions Flat fee service if the balance reached 120 days past due. Historically if a past due customer does not respond after three months of the company trying to collect, then you have to do something different. By using the Flat Fee Collection approach, they could get customers who were unresponsive to now begin communicating again. Within two fiscal quarters, the client reduced their bad debt by over 60 percent and increased cash f low by 30 percent.
Driving ahead, A.R.M. Solutions will attempt to communicate better with Gen Y and Gen Z by deploying the latest technologies in its collection approach. While complying with regulations and keeping up with the industry trends, the company will introduce texting and email in the collection process, in addition to the existing outbound calls and written letters.
In order to strengthen its position in the market, A.R.M. Solutions is committed to verse itself in every technology and language to communicate effectively on behalf of its clients.