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Tools for Efficient and Cost-Effective Debt Recovery

May 17, 2021 MicroBilt News

Tools for Efficient and Cost-Effective Debt Recovery

According to statistics, the total average household debt in America is currently $145,085

This is a high amount, and large debt averages like these make it increasingly challenging for businesses to carry out effective debt recovery. If debtors have various other debts vying for payment, it can become increasingly expensive and time-consuming for small and medium-sized businesses to recover what's owed to them. 

If you are a small or medium-sized business, it's essential that you optimize your debt collection systems. Reports show that late payments are the "assassin of small business," with 40% of late payments being written off as bad debt. On average, SMEs are receiving late payments more than 100 days after they are due.

If you want to improve your business's collection processes and heal your cash flow—one of the best solutions is leveraging debt recovery tools. 

Debt recovery solutions allow you to track debtors, verify their assets, place of employment, and much more. All this can be done seamlessly, with a minimum of time and hassle. 

Are you curious to know which are the best debt recovery tools? Stay with us as we list the top tools for efficient and cost-effective debt recovery. 

Smart Trac

One of the best debt recovery solutions is Smart Trac. Smart Trac assesses the "collectability" of debtors so you can prioritize your efforts. By focusing on debtors with higher collectability scores, you can get a higher return on your debt collection processes. 

Smart Trac is convenient, reliable, and dynamically updates its scores, so you get real-time data. The software allows you to submit consumer and collection account information. From here, it will automatically supply you with data on 95% of submitted customers, including those with thin credit histories. 

Smart Trac uses a variety of data to create its scores. These include things like short-term lending histories, alternative credit histories, demographic data, public records, ACH payments, and its own proprietary data sources.

By compiling these data points together, Smart Trac allows you to segment their recovery efforts, thereby saving money and time. 

Spot

Another set of powerful debt recovery solutions is the Spot suite. Spot's tools include a property report tool, bank locator, employment report generator, and place of employment verification tool. 

Let's take a look at these individually to see how they work and what they offer. 

Spot Property Report

With the Spot Property Report, you can view what property was recently owned or sold by a debtor. With this debt recovery tool, you can search by address only or name and address to gain the most comprehensive results. 

You will be able to view all information on a property known by the Tax Assessor and County Recorder of Deeds offices. These include the sale date, deed and mortgage information, default and pre-foreclosure data, sale amounts, address, etc. 

Depending on the location, you can also generate certain financial, personal, and address information on the owner. 

Spot Verified Bank Locator

The Spot Verified Bank locator is an invaluable tool for identifying bank accounts associated with debtors and establishing the likelihood of debt recovery. 

This tool generates reports which contain the bank name and address of your debtor. It reports on up to four verified account numbers per debtor. It also reveals up to two names associated with the accounts. 

Spot leverages data from MicroBilt's banking database, which is currently one of the largest of its kind in the US, containing over 1.7 billion account numbers. This guarantees you as the user get the most comprehensive results possible. 

Spot Verified Place of Employment

With the Spot Verified Place of Employment, you can confirm an individual's current place of employment. Outperforming most standard searches of this type, the Spot Verified Place of Employment has a 300-400% hit rate. 

Reports contain employer names, phone numbers, and addresses. As well as current and historical employment history. 

With this debt recovery tool, you know with confidence where a debtor works before calling the business. This saves time, money, and hassle during collections. 

Microtrac

Another of the top debt recovery tools that we offer is Microtrac. Microtrac offers real-time monitoring of changes to individuals' or companys' data. 

Through the monitoring of over 600 million data records, Microtrac can notify you of changes in:

  • Addresses
  • Names
  • Email addresses
  • Phone numbers (including home numbers, cell numbers, and work numbers)
  • Account numbers
  • Employment

Microtrac also provides notifications for:

  • Judgments and liens
  • Debt bankruptcy filings
  • Debtor criminal activity 
  • Death

What's more, Microtrac doesn't just yield debt recovery help. 

Depending on what parameters you set, it also can notify you when a customer becomes eligible for a certain service or product you're offering.

Enhanced People Search

If you're on the hunt for effective debt recovery solutions, then you also need to know about Enhanced People Search. This is a staple tool that you can use for locating individuals and gaining contact and identity information. 

Enhanced People Search also generates the personal history of individuals. 

Included in reports are names, addresses, dates of birth, social security numbers, phone summaries, and more. Reports also notify you if a debtor has died and identifies high-risk profiles. 

Trace Detail

Another of the effective debt recovery tools we offer is Trace Detail. Trace Detail facilitates cost-effective skip tracing by supplying you with critical debtor information.  

This includes both verified and shared addresses and phone numbers. It also provides information on roommates, neighbors, friends, associates, and relatives.

Do You Need Help Finding the Right Debt Recovery Tools for Your Needs?

Effective debt recovery is crucial for any business. However, it's particularly essential for SMBs. According to reports, 82% of small businesses fail because of impacted cash flow.

Enhancing your debt recovery rate is one of the best things you can do for your cash flow. And employing the right debt recovery tools is the smartest way to do this. 

As you can see, you can leverage a variety of powerful debt recovery solutions to level up your collection processes. Instead of spending money on debt recovery services or a debt recovery agency—invest it in your own systems. 

Not sure which debt recovery tools are best for your business? Contact our sales department today, and one of our representatives here at Microbilt will be able to advise you based on your unique needs, no matter your business's size.