Why should I use Adams, Evens, & Ross for staffing debt collection?

Adams, Evens, & Ross (AER) has over 33 years of experience collecting past-due debts exclusively for the staffing and recruiting industry. We have served more than 4,000 staffing and recruiting firms, placing over $1 billion in debt. Our industry specialization means we understand the unique challenges staffing firms face when clients don't pay. We also maintain the industry's most comprehensive credit alert — a database that tells you which companies are currently in debt before you place workers with them.

What is your fee structure for collecting staffing debt?

AER operates on a strict 'No Collection, No Charge' policy. You only pay a fee if we successfully collect the debt. If we do not collect, you owe us nothing. Our fee is a percentage of the amount collected. For specific fee details, you can review our fee agreement or book a free consultation.

Can AER reduce their collection fee?

Our fees are structured based on the age and complexity of the debt. In some circumstances fees may be discussed during your consultation. We encourage you to book a free 30-minute call with our team to discuss your specific situation.

Will collecting a staffing debt show up on my client's personal credit report?

AER specializes in commercial (business-to-business) debt collection for the staffing industry. Collection activity is typically reported against the business entity rather than the personal credit of an individual. For details specific to your situation, consult with our team during a free consultation.

Who can Adams, Evens, & Ross help with debt collection?

AER works exclusively with staffing agencies, recruiting firms, payroll funding companies, and staffing industry associations that are owed unpaid placement fees or staffing invoices by client companies. We are not a general collection agency — our expertise is entirely within the staffing and recruiting industry.

How will I be kept updated on my collection account?

AER provides regular updates on the status of your accounts. Once you place an account with us, you will receive communication on collection activity and any payments received. You can also reach out to our team directly with questions at any time.

Can I tell others that a client has not paid me?

There are legal guidelines around disclosing that a client owes you money. AER can advise you on how to handle this appropriately. Our credit alert service allows us to notify other staffing firms within our network that a particular company has an outstanding debt, which helps protect the broader industry.

What if I don't have a signed contract with the client who owes me money?

Not having a signed contract does not necessarily prevent collection. AER has experience recovering staffing debts in situations where formal contracts are missing. We evaluate each case individually and can advise you on your options during a free consultation.

What should I do if I receive a letter from the debtor's attorney?

If you receive a letter from the debtor's attorney after placing the account with AER, forward it to us immediately. Do not respond directly to the debtor's attorney. AER will handle all legal correspondence on your behalf through our nationwide network of attorneys.

What happens if the debtor mailed a check before I placed the account?

If a check was already in the mail when you placed the account with AER, notify us right away. You will need to deposit the check and inform AER of the payment. Depending on the timing and what was agreed, this may affect the account status. Our team will guide you through the next steps.

Can I close a collection account after it has been placed with AER?

Yes, you can request to close an account that has been placed with AER. However, depending on the work already completed, there may be considerations to discuss. Contact your AER representative to review the status of the account before making that decision.

What should I do if the debtor contacts me directly?

Once you have placed an account with AER, refer any direct contact from the debtor back to us. Do not negotiate or accept payment directly without first notifying AER. Direct communication from debtors after placement should be handled through our team to protect the integrity of the collection process.

I received a check from the debtor — what do I do?

If you receive a check directly from the debtor after placing the account with AER, deposit the check and immediately notify your AER representative with the amount and date received. AER will then calculate the appropriate fee based on the amount collected.

When do I get paid after AER receives a payment from the debtor?

Once AER receives and clears a payment from the debtor, your portion of the collected amount is remitted to you promptly. The exact timeline is outlined in the fee agreement. AER works to ensure you receive your payment as quickly as possible after funds are confirmed.

How do I get started with Adams, Evens, & Ross?

Getting started with AER is simple. You can book a free 30-minute consultation with Wilson Cole at https://www.staffingdebt.com/aer-consult/ or go directly to https://www.staffingdebt.com/aer-information/ to place an account. AER will walk you through the fee agreement and next steps from there.

How to Use Automation in Recruitment Debt Collection

By Leah Funk | October 7, 2024

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Managing debt collection can be a cumbersome and time-consuming task, especially for recruitment agencies juggling numerous clients and invoices. Automation offers a powerful solution to streamline the debt collection process, making it more efficient and less stressful.

By leveraging technology, recruitment agencies can ensure timely payments, improve cash flow, and maintain positive client relationships.

Understanding the Benefits of Automation

Before diving into the how-tos, let’s explore why automation is beneficial for debt collection:

Efficiency: Automation speeds up the process, reducing the time spent on manual tasks.
Consistency: Automated systems ensure that reminders and follow-ups are sent on time, every time.
Accuracy: Minimizes human error, ensuring invoices and communications are accurate.
Scalability: Easily manage an increasing number of clients and invoices without additional effort.
Improved Cash Flow: Faster and more consistent payments improve your agency’s cash flow.

Setting Up Automated Invoicing

Choose the Right Software: Select an accounting or invoicing software that offers automation features. Popular choices include QuickBooks, Xero, and FreshBooks. These platforms provide robust tools for managing invoices and automating reminders.
Create Detailed Invoices: Ensure your invoices are clear and detailed, listing all services provided, their costs, and the total amount due. This reduces confusion and disputes, facilitating quicker payments.
Schedule Invoice Sending: Set up your software to automatically send invoices as soon as a placement is confirmed or services are rendered. Immediate invoicing increases the likelihood of timely payments.

Automating Payment Reminders

Set Up Reminder Schedules: Configure your software to send automated reminders at set intervals. For example, a reminder could be sent one week before the due date, on the due date, and one week after the due date if payment is still outstanding.
Customize Reminder Messages: Personalize your reminder messages to maintain a professional yet friendly tone. Automation doesn’t mean impersonal. Craft messages that reflect your brand’s voice and maintain a positive client relationship.
Escalation Procedures: Set up a sequence of reminders that escalate in urgency. Start with friendly reminders and gradually move to more formal communications if the payment remains outstanding.

Utilizing Automated Follow-Ups

Automate Follow-Up Emails: Use your software to schedule follow-up emails for overdue invoices. Consistent follow-ups increase the chances of getting paid without needing to manually track each invoice.
Integrate Multiple Channels: Automate follow-ups through various channels such as email, SMS, and even phone calls. Some clients may respond better to one method over another.
Monitor and Adjust: Regularly review the effectiveness of your follow-up schedule and make adjustments as needed. Automation should be flexible and adaptable to different client behaviors.

Implementing Late Fees and Early Payment Discounts

Automate Late Fee Application: Set your software to automatically apply late fees to overdue invoices as per your payment terms. This not only encourages timely payments but also compensates for the delay.
Offer Automated Discounts: Configure your system to automatically apply early payment discounts. This can incentivize clients to pay ahead of the due date, improving cash flow.
Transparent Communication: Ensure that all late fees and discounts are clearly communicated in your invoices and payment terms. Transparency builds trust and reduces disputes.

Leveraging Automated Reports and Analytics

Generate Regular Reports: Use your software to generate regular reports on outstanding invoices, payment patterns, and client payment histories. This helps you stay on top of your finances and identify problematic accounts early.
Analyze Payment Trends: Analyze the data to understand which clients consistently pay late and why. This insight allows you to tailor your debt collection strategies accordingly.
Adjust Strategies Based on Data: Use the insights gained from your reports to refine your payment terms, reminder schedules, and follow-up procedures. Data-driven adjustments ensure your debt collection process is continuously improving.

Conclusion

Automation is a game-changer for recruitment debt collection, offering a myriad of benefits from improved efficiency to better cash flow management. By setting up automated invoicing, payment reminders, follow-ups, and utilizing data analytics, recruitment agencies can streamline their debt collection process and reduce the stress of chasing overdue payments.

Remember, automation is like having a tireless assistant who never forgets and always performs tasks with precision. So, gear up, set your systems in motion, and watch as your debt collection process becomes more efficient and effective, leaving you more time to focus on what you do best—recruiting top talent and growing your agency!

Leah Funk

As the National Account Sales Manager at Adams, Evens, & Ross, I have over 28 years of experience, and specialize in providing credit and collections solutions tailored to the unique needs of staffing and recruiting firms. Also, I'm the Executive Director of the United States Staffing Association (USSA), where I lead efforts to support, educate, and advocate for professionals in the staffing and recruiting industry across the country. In this role, I work closely with industry leaders to develop initiatives that support and give back to the staffing and recruiting community.

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