A key aspect of the Judgment Collectors brand is our commitment to working on consignment. Rather than purchasing judgments outright, we simply represent our clients as agents attempting to collect on their behalf. We charge a fee for our service – but only if we succeed in collecting a judgment for you.
We prefer the consignment model because we believe it makes for better business. But there’s more to it than that. Collecting judgments on consignment offers advantages to you, as the client. What are those advantages? Check them out:
1. A Better Cash Position
The first advantage is a better cash position. Whether you sell a judgment to a collection agency or bring in Judgment Collectors on consignment, you no longer need to spend any money on collection efforts. So that’s a wash. But you stand to enjoy a better cash position when we actually collect.
The consignment model offers significant motivation for us to succeed. We want to get paid. And because our fee is often based on a percentage of what we collect, we are motivated to collect as much as possible. You stand to get more on the consignment model than you would get by accepting pennies on the dollar through an asset sale.
2. You Retain Ownership
Money judgments are considered assets under the law. They are assets that can be bought and sold just like real estate, securities, etc. If you were to sell a judgment to a collection agency outright, the sale would transfer ownership of the judgment to the collection agency. You would be forfeiting all rights of ownership in exchange for whatever amount the agency is willing to pay.
Judgment collection on consignment allows you to retain ownership. Should you ever decide you are unhappy with our services, or you simply wish to try collecting on your own, you can do so. You still own the judgment along with all the rights that come with it.
3. You Can Focus on Your Core Business
Placing your judgment with us, on consignment, frees you up to focus on your core business. That’s big if you are a sole proprietor or a small business owner with just one or two employees. And even if your business is larger, we are willing to bet that there are other things you would rather have the accounting department work on.
The consignment model lets you and your team get back to your core business without sacrificing a significant portion of your judgment’s value. In other words, you don’t have to give up a ton of money just to be able to get back to your core business.
4. Better Customer Relationships
Finally, the consignment model offers the opportunity to maintain better customer relationships even during the collection process. As agents working on your behalf, we do everything we can to settle the matter in an amicable way. We avoid antagonizing because it is neither in your best interests nor ours. In doing so, we help you preserve those customer relationships that are so important.
By contrast, think of how your customer might react if you sell the judgment to a collection agency. The customer might consider it a betrayal. Why take that chance? It’s better to place your judgment with an agency that wants to represent you in the best possible light rather than selling it to another agency that doesn’t have your interests at heart.
We collect judgments on consignment because we believe it is the best way to go. If you would like to know more about how we do business, don’t hesitate to reach out to us.