In the Hoosier State, a contractor’s word and their work are their bond. You pour your skill, time, and resources into every project, from a kitchen remodel in Carmel to a roofing job in Fort Wayne. But what happens when the job is done and the invoice goes unpaid? Chasing down delinquent payments isn’t just frustrating; it’s a drain on your most valuable resources and a threat to your cash flow.
For many Indiana contractors, handing over an unpaid account to a collection agency feels like a last resort. But what if you viewed it as a smart business strategy instead? A professional debt collection agency isn’t just about recovering money—it’s about protecting your business.
Here’s how partnering with the right agency can be a game-changer for your contracting business.
You Get to Be the Builder, Not the Bill Collector
Your expertise is in your trade, whether it’s plumbing, electrical, HVAC, or general construction. Every hour you spend making phone calls, sending follow-up emails, and tracking down payments is an hour you’re not spending on a job site, quoting a new project, or managing your crew.
By outsourcing collections, you reclaim your time and reduce your stress. You can focus on the revenue-generating activities that grow your business, leaving the difficult conversations to professionals trained in debt recovery.
Improve Your Cash Flow
Consistent cash flow is the lifeblood of any contracting business. It’s what pays for materials, covers payroll, and keeps the lights on. A single large, unpaid invoice can throw your entire financial forecast into chaos.
A collection agency’s sole purpose is to get that money back into your account. They have the tools, technology, and persistence to follow up on overdue accounts effectively. This restores your cash flow, allowing you to operate your business with greater financial stability. Many agencies work on a contingency basis, meaning you only pay a percentage of what they successfully collect. When you compare that fee to a 100% loss on a written-off invoice, the value is clear.
Navigate Indiana’s Legal Landscape with Confidence
Debt collection is governed by a web of regulations, including the Fair Debt Collection Practices Act (FDCPA). Additionally, Indiana has specific laws regarding contracts, interest on unpaid invoices, and mechanics’ liens.
- Mechanic’s Liens: While a powerful tool, filing a mechanic’s lien has strict deadlines and procedural requirements in Indiana. A professional agency understands how to leverage this process correctly as part of a collection strategy.
- Small Claims Court: Taking a client to court is an option, but it requires time, paperwork, and a clear understanding of the legal process.
A reputable agency operates in full compliance with state and federal law, protecting your business from potential legal blowback. They become a professional buffer between you and the client, de-personalizing the conflict and ensuring all actions are legally sound.
Increase Your Chances of Successful Recovery
Why are agencies often more successful than in-house efforts? They have access to resources you don’t. Professional debt collectors use skip-tracing tools to locate debtors who have moved or changed phone numbers. They can also report unpaid debts to credit bureaus, which provides a powerful incentive for the debtor to pay. Their experience allows them to use proven communication strategies that yield results while maintaining a professional tone.
When Should You Call a Collection Agency?
It’s time to consider professional help when you see these red flags:
- The invoice is over 90 days past due. The older a debt gets, the harder it is to collect.
- The client has broken multiple promises to pay.
- The client is no longer responding to your calls or emails.
- The client is disputing the quality of your work without merit, solely to avoid payment.
Your work has value. Your time is precious. Don’t let unpaid invoices drain your resources and compromise the financial health of your Indiana business. Partnering with a professional collection agency is a proactive step to ensure you get paid for the skilled work you provide.
Take Control of Your Accounts Receivable Today
Let us help you turn your aged invoices back into revenue. We invite you to contact us for a free, no-obligation consultation to discuss your specific situation. We will review your accounts, provide a clear assessment of your options, and explain how our proven strategies can work for you.
At New World Collections, we are experts in all aspects of bad debt recovery. We have the answers! Contact Us
