Collection Agency for Construction Industry

The construction industry is one of the most challenging industries to operate in due to the difficult and often times, dangerous work that is involved. When a construction company has provided work for a client who refuses to pay on time, it is time to hire a construction debt collection agency.

Contractor Refusing to Pay

If a contractor hires a sub-contractor to do work on his project or provide material, it is usually because of the good reputation the sub-contractor has developed over years of quality work. Sadly, the construction industry is known for having high levels of delinquency.

When a contractor is late with paying the agreed upon amount and is not responding to phone calls, the next step should be to hire a collection agency for construction companies.

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Is your business collecting debt from individual consumers or other businesses?

Collect from individuals consumers only
Collect from businesses only
Collect from individual consumers and businesses

Roughly how much debt are you looking to collect?

$500-$1000
$1000-$10,000
$10,000-$50,000
$50,000-$100,000
$100,000 or more

Roughly how many accounts are you looking to collect from?

1
2-10
10-25
25-100
100 or more

On average, how long have the accounts been past due?

Less than two months
Two to six months
Six to 12 months
One year or more

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Collection agency for construction companies

How Much Does a Construction Collection Agency Charge?

A professional collection agency will not charge upfront fees before they have started collections on a client’s behalf. Most collection agencies will work on a contingency rate. A contingency rate means the collection agency will keep a percentage of the money collected but only will get that amount after the payment has been successfully collected.

For example, Concrete Supplier LLC provides $40,000 worth of concrete to Contractor ABC Inc. The Contractor refuses to pay and does not respond to phone calls.

A collection agency will take on the responsibility of collecting on the $40,000 balance with no upfront fee.

The agency works on a contingency rate of 20%, meaning they keep 20% of every dollar collected.

After several weeks of diligent debt collection work, the agency secures payment in full.

Concrete Supplier LLC gets a deposit for $32,000. The agency keeps $8,000 for successfully collecting the full balance.

The concrete company can now use these funds to help with payroll and equipment. It is truly a win-win proposition that appeared to be deal gone bad a few short weeks ago.

When to Hire a Construction Debt Collection Agency?

They are not set time for companies to hire a collection agency to collect on a past due account. A company may have trusted the client and allowed several months or even over a year to pay the outstanding balance.

For the best results, hiring a collection agency as soon as a company feels the client is not going to pay the invoice is recommended. This may be at 60 days, 90 days or Six Months. Keep in mind, the longer a company waits on the payment, the less likely it will be ever be paid.

A construction company who is seeking to collect from a contractor will see the best results by bringing in a collection agency within the first 90 days. If a business waits after 90 days, the chances of a successful collection drop substantially. By using a debt collection agency with extensive collection experiences in the industry, a company can still expect positive results.

The Benefits of Hiring a Collection Agency

The number one benefit of hiring a collection agency is receiving money from accounts receivables that would otherwise never pay. The infusion of cash flow into the company allows a company more revenue to help cover upcoming expenses.

Some other benefits to hiring a construction collection agency is allow partners within the industry know that your company will not stand by idol waiting for payment. Furthermore, having a collection agency already representing your business can help for any future delinquent paying customers as they can work on the accounts earlier in the delinquency stages.

If you own a construction business that needs help with collecting money, get a free quote below.

Close

Is your business collecting debt from individual consumers or other businesses?

Collect from individuals consumers only
Collect from businesses only
Collect from individual consumers and businesses

Roughly how much debt are you looking to collect?

$500-$1000
$1000-$10,000
$10,000-$50,000
$50,000-$100,000
$100,000 or more

Roughly how many accounts are you looking to collect from?

1
2-10
10-25
25-100
100 or more

On average, how long have the accounts been past due?

Less than two months
Two to six months
Six to 12 months
One year or more

Contact Information





Tell us about your company




Tell us where you are located