Rocket Receivables Stage Two Contingency Collections steps it up a bit, but small businesses pay for the extra services. Unlike other collection agencies that take a percentage of the debt recovered, Rocket Receivables splits it 50/50. You won’t pay if the collection agency doesn’t recover any debt for you, but it’s not the cheapest. In stage two, Rocket Receivables turns the collections over to its skilled collectors, who send demand letters and start legal action if necessary. Any accounts that aren’t resolved in stage one are automatically transferred to stage two without any added fees. Stage two is for hard-to-collect debt that is more than 120 days old.
In addition to low prices with its fixed-rate plans, Rocket Receivables has a good track record recovering debt. While it doesn’t list its recovery percentage on its web site, it states that its success rate is four times the industry average. Over the last 10 years, it has recovered more than $6 billion in debt for more than 60,000 clients.
When it comes to recovering money, Rocket Receivables has several strategies it can employ. Some of those services include demand letters, skip tracing and litigation services. Rocket Receivables is licensed to operate in all 50 states and services many industries, including banks, municipalities, credit unions, insurance agencies, retailers, manufacturers, and education providers.
This collection agency also stands out when interacting with your debtors. You want a company that treats your customers with respect, understands what they are going through and won’t harass them at all hours of the day. Rocket Receivables leads by example, fostering a culture where the focus is always on ethical practices and high principles. It also takes data security seriously. The collection agency meets the data security and compliance standards that are necessary to serve all the markets including banks and government agencies.
Pros of Rocket Receivables
For business owners who don’t want to pay a lot for collection services or don’t have too much hard-to-collect debt, Rocket Receivables delivers. The flat-rate pricing and tiered level of service in phase one meets the needs of many small businesses. You don’t have to worry about hidden fees or extra charges when you hire Rocket Receivables.
It also has an online portal that uses advanced technology to make it easy to add new accounts and monitor existing ones. Searching and running reports in Rocket Receivable’s online portal is also easy. You can search by the average age of the account, recovery rates per account and the cost to collect the debt. To keep customers’ data secure, Rocket Receivables uses what it calls a Cyber Security Management System. With it, data is encrypted in transit and there is multi-factor authentication. That should give business owners peace of mind their data and that of their debtors is secure.
Cons of Rocket Receivables
Rocket Receivables flat-rate pricing makes it a top pick for affordability, but it has some limitations. Its 50/50 split with its contingency pricing plan is higher than the low end of the industry average. If you want to place a lot of older accounts, more than 120 days past due, with Rocket Receivables it can get expensive. Therefore, if you need a lot of help in collecting debt, you may be better off with a different service.
There are also limits to what you can achieve in stage one. If your accounts are less than 120 days old, they fall into stage one. It doesn’t matter how much debt it outstanding or how hard it’s been to collect on your own. If you want to use advanced tactics from day one Rocket Receivables isn’t for you.
It’s also worth noting that TSI, Rocket Receivables parent company, is not an accredited member of the Better Business Bureau. However, it does have an A- rating. Rocket Receivables doesn’t disclose its collection recovery rate, although it says it’s four times the industry standard.
Rocket Receivables places a lot of emphasis on educating customers and visitors to its website. The company maintains a detailed FAQ page, posts video tutorials and offers online training resources. It also has a blog that is updated regularly. You can contact customer service via phone, email or by filling out an online form.