Referrals From Creditors

I have had a few inquiries lately about getting leads outside the court cases. Although I do suggest most people new to this profession begin with recent lawsuits filed in their area (this is the quickest way to earn fees), building a good network for ongoing referrals is the best way to really GROW your business over time.

One referral source worth researching is through creditor businesses. You can identify possible companies by scanning lawsuits and looking for the same business listed as plaintiff on more than one case. These will probably be companies that have an ongoing problem collecting on past due accounts.

Once you have identified a few of these companies, send them a brief letter or call and offer your service to "collect" on their past due accounts at no charge. After you have their attention you can explain how you will be compensated by the debtor business but the creditor will benefit by receiving payments. They may only be willing to accept payment in full on these debts but you might be able to get them to take payment plans or a small discount or both. The more wiggle room to can get them to agree to, the easier job you will have when you approach the debtor companies.

Over the years I have developed relationships with several such creditor companies and they will occasionally provide me with a list of past due accounts to contact with all the information I need. When I talk to the debtor business owner, I let them know I can probably settle this dispute for them at a discount or at least set them up on a manageable monthly payment plan. Since I know exactly what to expect from the creditor and there is very little actual negotiation involved, I typically keep my fee at my minimum rate of $350.

If you can establish relationships with just a few creditor businesses like this, you may be assured several easy cases each month and an additional stream of ongoing fees. Set aside a few hours each week solely for the purpose of building your referral network from several different sources (see my previous Blog posts on Business Brokers & Factoring Companies) and you will soon see a substantial increase in your revenues.

Scott F. Soape