According to Forbes, manufacturing jobs have grown 714% over the last 3 years as there appears to be a resurgence of manufacturing output of US based companies. With looming trade disputes with China and news released this week that a 5% tariff would be added to Mexican imports, US based manufacturers appear to be poised to increase their market share with buyers. With increased production however also comes with the risk of increases in delinquent receivables. As most manufacturing companies operate on razor thin profit margins already, the addition of unpaid receivables can be crippling to expansion. More frequently now manufacturers are turning to collection agencies like AccountsReceivable.com to assist in recovering their delinquent accounts.
Collection agencies offer unique benefits to manufacturers that allow them to recover their delinquent accounts cheaply and effectively. While most manufacturing companies have in house counsel or a legal department, most of the customers manufacturers work with are not local to them. This creates a challenge for their in house legal teams as their attorneys are likely not licensed to practice where their delinquent customers are. When using a nationwide collection agency like AccountsReceivable.com, manufacturers can leverage the collection agencies network of industry vetted collection attorneys, regardless of the location of their nonpaying customer.
In addition to having a nationwide presence collection agencies typically only charge a percentage of what they are able to collect making a collection agency a cost effective alternative to litigation. Collection agencies also have a host of investigative tools available to them which allows them to locate and identify assets and liabilities to apply pressure to non-paying customers to resolve their balances. When a manufacturer hires a collection agency like AccountsReceivable.com they are also employing a team of expert negotiators that are able to devise unique solutions to identify the root of the problem enabling them to quickly recover the open invoices. In many circumstances, a break in the supply chain multiple levels down may be the cause of the non-payment and a successful collection agency will be able to identify this and act accordingly.