Just about every business professional is familiar with the concept of return on investment (ROI). It is a principle that guides business decisions among both small companies and big corporations alike. It turns out we can apply ROI principles to judgment collection. Doing so is not a bad idea if you are trying to figure out whether you should attempt to collect a judgment on your own.
Judgment creditors more or less have three options for pursuing collections:
- Collecting in-house.
- Turning collections over to an attorney.
- Bringing in a specialized collection agency.
Judgment Collectors is the very type of collection agency you would want to bring in. If you were to apply ROI principles to your collection efforts, we’re guessing you would conclude that working with a collection agency is in your best interests.
Spending Money to Make Money
The foundation of the ROI concept is the old adage that says you need to spend money to make money. Spending to make is no secret among successful business owners. But here is the million-dollar question: how much are you spending to make what you make? Another way to ask the same question is to ask what your margin is.
Margin is the percentage of total revenue that constitutes profit. If you spend $90 to create a product and sell it for $100, your margin is 10%. Business owners know that just turning a profit is not enough. They need a high enough margin to make doing business worthwhile. We can apply the same principle to collecting judgments.
If your company spends $5,000 to ultimately collect $20,000, it is easy to make the case that you’ve done quite well. But what if you only collect $6,000? Now your margin isn’t so high. And what if you only collect $2,500? You have spent more to collect less.
How About Spending Nothing at All?
ROI principles dictate that what you spend on judgment collection must be worth the potential return you can expect. With that being the case, we have a proposition: why not spend nothing at all? It is entirely possible when you turn your judgment over to us. We cover all our own costs.
We pay our team members, we cover office expenses, we pay for our own tools and resources, etc. The minute you turn a judgment over to us, your financial obligations cease. Yet you still maintain ownership and control over the judgment in question.
How do we get paid? We work on consignment. If and when we collect, we get paid from the proceeds according to the agreement between us. If we don’t collect anything, you do not pay anything. So at the very least, you cannot lose anything by letting us attempt to collect on your behalf.
More Than Just Money: Judgment collection
We tend to think of ROI as purely a financial metric. But there is more to it than just money. Collecting an unpaid judgment requires an investment in time. And just like your company’s cash is important, so is its time. Do you stand to earn enough from collection efforts to put in the hours?
Turning your judgment over to us equates to putting your time into more important things. You and your staff no longer invest time in tracking down debtors, looking for assets, and so forth. We invest our time so that you don’t have to invest yours. We believe that this is the best way to maximize your time ROI.
If you have an outstanding judgment waiting to be collected, we might be able to help. Let us maximize your ROI and get this done.