Shouldn't Business Be Booming? in This Down Economy, B2B Collection Agencies Are Struggling, Too

Daily Herald (Arlington Heights, IL), January 24, 2011 | Go to article overview

Shouldn't Business Be Booming? in This Down Economy, B2B Collection Agencies Are Struggling, Too


Byline: Jean Murphy Suburban Business Correspondent

Collection agencies that resolve business-to-business debts experienced a 30 percent to 40 percent surge in new business when the economy first tumbled between late 2007 and early 2009, according to local agency statistics. However, that didn't necessarily translate into an equivalent financial success.

Agencies including Biehl and Biehl in Carol Stream, Brennan and Clark in Villa Park and Credit Decisions International in Elk Grove Village all hired more staff to handle the extra work. Biehl and Biehl, for instance, had to ramp up for a 60 percent increase in sales during 2009.

But contrary to what you might expect, the influx of additional accounts was not a gold mine for the collectors because in many cases they were hired to contact failed businesses from which there was little chance of collecting, said Lou Figueroa, president of Credit Decisions International.

Other area collection agencies, whose fees depend upon the money they are able to recover, experienced the same trend.

"There was a huge influx of business, but little chance of recovering many assets," said Brennan and Clark President Meg Scotty. "We were seeing an unprecedented number of bankruptcies and companies just dissolving, and since the economy had been so strong, only about 5 percent of business owners had been required to sign personal guarantees that we could pursue."

In those early days, Scotty said, the company was busy with triage, sorting through the new placements to decide what was "dead on arrival" and what could possibly be saved.

"We spent lots of money on our company infrastructure to make sure that we could handle the accounts efficiently. Otherwise we wouldn't have been able to remain in business ourselves, since the amount of money being recovered, compared to the number of (new accounts), plummeted," Scotty said.

"When a small business goes bust, it is usually just that. They don't have any tangible assets to go after because they have leased everything," said Bill Biehl, president of Biehl and Biehl.

Consequently, Scotty admits she became very adept at delivering bad news to her clients, telling them that many debts would have to be written off. They couldn't even sue because no attorney would take the cases since there was nothing to be gained.

Debtors that were still in business, on the other hand, were put on more repayment plans than ever before, although Biehl said agencies tried to keep those plans to no more than 90 days since the longer the duration of the plan, the greater chance of default. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Shouldn't Business Be Booming? in This Down Economy, B2B Collection Agencies Are Struggling, Too
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.