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Not because I was good, but because the other guy was...not so good! 0 M. Lacek Choosing a legitimate commercial recovery agent could prove to be the difference between adding another used truck to your re-marketing department or creating another charge-off. Recently I was sent a stack of assignments to locate and recover. Six tandem axle tractors, four reefer trailers, two rubber tire loaders, an excavator and two dump trucks. 15 assignments, all different debtors. These assignments were part of a commercial portfolio recently purchased by my new client. All were charged off assets, all previously worked by other repossession agents. "Pennies on the dollar," the client had said. "Probably never find them".  I knew I would have to jump head first into these files, using everything I have learned in my 30 years of repossessing commercial accounts. After the first few days working the stack of cold cases, I was hit with a startling realization. These assignments were not really difficult to locate. In fact, after a about 12-14 days, we had recovered all but the reefer trailers. What I had learned was more than alarming. The assignments were simply never properly worked. Agents who had worked the assignments before they were thrust onto my desk were not paid enough to prioritize the task. After the repossessor drove past a couple addresses, the client was told the asset could not be located. In many instances, the second and third repossessor on the assignment did the same "checked address, no show".  To make matters worse, inexperienced collection department staffers or assignment forwarders believed the collateral was long gone and the accounts were charged off. Here I thought my special skills and years of experience had yielded to my success when the real credit was because of the diminished capacity and the absence of quality of service by the repossessors who had worked the assignment before me. If the assignments were sent to a qualified commercial repossessor, many assets could be recovered in the first 15 days. I guess I'm not so special after all.
by M. Lacek
Thursday, August 20, 2015
Top 10 Reasons Why Repossessors Fail 0 M. Lacek 1. Repossessor is given old information. Client sends aged information to recovery company from the original docs. Repossessor checks a few addresses for the asset then places the account in the back row, cheap seats, dusty corner, between the seats or file 13.  2. Repossessor is not experienced in commercial accounts. Most repossessors drive by given addresses and repossess automobiles. Repossessors are given a list of addresses to check every night. Commercial accounts are seldom at the residence.  3. Repossessor is not paid enough. Forwarding companies often retain 70% of recovery fee while the actual repossessor working the account is left with peanuts. This caused the repossessor not to prioritize the account. A repossessor will always prioritize the assignment which pays him more, and pays him fast. 4. Repossessor often must wait over 60 days to be paid. While the client may pay the recovery invoice within 15 days of recovery, the forwarding company pays the repossession company in 60 or 90 days. This causes the recovery agency not to prioritize the account. A repossessor will always prioritize the assignment which pays him more, and pays him fast.  5. Repossessor is short on investigative skills. Many forwarding companies utilize the services of tow-truck drivers who are not experienced repossessors. The tow-truck driver does little more than drive by the address provided. Some forwarding companies choose agents based on lower fees instead of productivity. 6. Lender or forwarding companies will inform the debtor a repossessor is on the way. Client will ask the debtor to voluntarily surrender the asset or he will send someone to pick it up. The debtor now will hide or strip the asset. Some forwarding companies will contact the debtor and attempt to convince the customer to voluntarily surrender the asset. This gives the forwarder the ability to pay the repossessor less because the account is a voluntary surrender still charging the lender for a non-voluntary repossession. Again, the customer hides the asset. 7. Debtor keeps asset on the road. Debtor knows he is behind on his payment and works 24/7 in an attempt to bring the account current. It is very common for the customer to stay on the road 3-4 weeks at a time. An experienced commercial recovery agent can determine where the truck will load or unload for recovery purposes.  8. Debtor used title of non-existent asset as down payment. The lender fails to visually inspect assets used as collateral only to learn later the title is all that remains. This happens very often.  9. Asset is in a repair shop somewhere on the planet. When a commercial account becomes delinquent, the maintenance schedule is first to suffer. The debtor will take the asset to a repair facility with nothing but hopes and dreams. Or the asset was involved in a collision because of faulty equipment and was towed to a tow yard.  10. Asset has been sold. Lender is notified of a pending sale of the asset for a storage or repair lien and fails to act on the notice. The asset is legally sold and the clients lien is null and void. 
by M. Lacek
Thursday, August 20, 2015
Where is the fire extinguisher? 0 S. Davis Imagine that you are sitting at home on a night much like tonight. It is a warm summer evening, and you are happily nestled-in with your family. The kids have finally agreed to watch one of your favorite 80’s movies, and you can smell the popcorn popping in the kitchen. You look around at the home that you have built, things are going well, maintenance is up-to-date on everything, and worries are at a minimum. Suddenly the fire alarm screams out. Oh no, the popcorn! The smoke billows out of your kitchen as you frantically search for the one thing that can help limit the fire, and the impending doom of losing it all. That one simple little thing that will stop a home-wrecking, memory-engulfing, life-changing fire from consuming everything. Where is the fire extinguisher? July 2015 is not a bad time to be in the equipment finance and commercial lending industries. Sales are up, portfolios are growing at a record pace, delinquencies are down, and the small business sector is exploding. All signs point to “Concentrate on Sales,” and rightfully so. I am from Minnesota, and we have a saying: “Make hay when the sun is shining.” If you are like a lot of my clients, your salespeople own the deals from beginning to end, whether good or bad. I am sure that you can identify with watching one of your best sales reps chase a deal that is spinning out of control. Wouldn’t you rather have that person on a call that was adding new value to your portfolio? One of the most important skills I have developed as a business owner is identifying employees’ strengths, and guiding them in that direction. Having people in the right seat at the right time, and moving in the same direction, is vital to a company’s success. I ask myself this question constantly: “How can this person make the most money for us, and what can I do to make sure that nothing gets in this person’s way?” In this sales-driven economy, it makes sense to keep salespeople smiling and dialing. That being said, allowing delinquencies to get out of hand is obviously a huge mistake. Think of your business as the home in the example that I started with. Things are great, and everyone feels comfortable. But how long until the fire starts? What is your plan when we see another 2008...or worse? No one wants to see the home that they have worked so hard to build turn to ashes. By aligning yourself with a professional third-party collection agency now, you can eliminate most of your back-end collections work both now, while times are good, and – most importantly – when the fire alarm goes off. Screening Third-Party Collections Agencies Ask your prospective agency what types of accounts their collectors have the most experience with, and make sure that your types of deals are squarely in their wheelhouse. Ask specific questions about their process – from start to finish: What skip-tracing sources do they use? Do they check for bankruptcies prior to collection? Do they check credit? Can they report? How many times will the owing party be contacted per day, week, etc., and how will they be contacted? How can you keep track of their progress? Will they contact you every couple of weeks, or will they provide software and log-ins so that you can monitor their daily progress? Are they a full-service agency, so that they can provide all of the help that you need? Do they provide all of the reporting and accountability that you need? Once you have a trusted partner like Dedicated Commercial Recovery Inc., and a process in place that can produce expected and measurable results, you will feel better-prepared for whatever may come your way. So go out there and sell the heck out of whatever your loan product is, but make sure to keep that fire extinguisher in plain sight. Now sit back, and enjoy that 80’s movie ... I recommend “Stand By Me.”
by S. Davis
Friday, July 24, 2015
Lessons in Love and Money..Protecting Yourself 0 S. Davis I heard a story on the local news as I was getting ready for work this morning. The question asked was: With a gain of over 150 points last Friday (February 20, 2015), do analysts envision any slowing of the current U.S. economic recovery?   Although I didn’t have time to stick around to hear the “experts” pontificate about the future (Ah the joys of entrepreneurship), I can tell you my answer....   It will slow down. In fact, I think there is a good possibility that we are due for another correction in the very near future. While no one, including me, wants to see our current, positive economic traction slow down, we are all realists. Our economy has proven to be surprisingly fragile in the past, even when it was thought to be strong.   Most of us have had multiple personal relationships in our life, and most of us have been hurt. Remember the first time your heart was broken? You were certain that you would never find another who would be able to fill the void that was left when that relationship ended. But, after some time, tears, and self-pity, you picked yourself back up, and moved on. You never forgot that hurt, though. With the next person, you were cautious, you took things slowly, and you worked hard to protect your fragile emotions.   Money, like personal relationships, evokes powerful and undeniably emotional reactions. It’s likely that at some point in your youth you had a “loss-of-money” experience. For some, it was getting hustled out of their paper route money at the pool hall, for others it was wasting their first paycheck on candy and junk food, and for still others it was having their money stolen. Here too, after some time, tears, and self-pity, you picked yourself up again and moved on. But with each new investment, you were more cautious, and you reviewed every potential downside in order to protect your fragile pocketbook.   The total collapse of 2008 was a gut-punch to lenders. Bank regulations changed, lending qualifications tightened like a vise, and the “economy” became the standard excuse for most any problem. Can’t pay your bills? The economy. Can’t afford a new car? The economy. Can’t find your shoes? The economy.   After plenty of time, plenty of tears, and plenty of self-pity, our country has picked itself up and moved on. The problem is, when it comes to our economy, our country seems to suffer from acute memory loss. Unlike the examples given earlier, when our economy is good, most people seem to think that things can’t ever go badly again. Even today, I read that “2008 could not happen again because regulations have been put in place to solve the problems we had.”   Okay....If you buy that, then I have a bridge to sell you!   Lending qualifications have loosened dramatically once again, home prices and sales have risen once again, new construction is currently on the rise, “Now Hiring” signs are popping up all over, and start-ups are beginning to appear around every corner.   Are you seeing a familiar pattern here?   I know that delinquencies are down now. Do you really think that they will stay down forever? I understand that sales are the single most important thing to your company right now. Are you still doing 100% of the due diligence that you were doing right after the collapse?   Understanding the need for professional and Dedicated late-stage collections and/or remarketing help, and securing that help now, is essential to being ready for the next down-turn.   Here at Dedicated Commercial Recovery Inc., we work with our clients through all of the ups and downs that are associated with lending. We tailor our solutions so that when things do take a turn for the worse, your company will be ready, with a proven process already in place, and you will know what results to expect.   Call me, Shane Davis, at 612-351-3945, or email me at Shane@DedicatedCRI.com to request our Client Packet. With zero up-front fees, and a proven and experienced team, we are ready to assist you right now!
by S. Davis
Tuesday, February 24, 2015
A Company Dedicated To Your Recovery 0 S. Davis During the process of funding a transaction with a company, the Guarantor was on the phone with you constantly. Anything you needed, they provided. Taxes from ten years ago? No problem! Fast forward to today. That same person who was your buddy during the funding process has completely disappeared. When you do happen to catch them on a new number, they make excuses and promises they never fulfill. What you need is the experienced and knowledgeable company that is Dedicated to Commercial Recovery. A Collections and Recovery company that has proven and exclusive techniques to work with distressed accounts.  You need the Experts at Dedicated Commercial Recovery Inc. What you will find out, and what our current Clientele already knows, is that our evolved professional mediation style is set up for optimum Recovery. We work with your borrowers to help them understand their obligations, and resolve them with little to no liability for all involved. Our Collection plans are easily customized for any and all Commercial Debt. We will be an extension of your process that allows you to focus on selling, growing your portfolio, and enjoying the other aspects of lending. Call us today, and let's build a plan for late-stage Recovery success!
by S. Davis
Tuesday, January 27, 2015
The Free Way To Create Repayment Urgency 0 Shane Davis The end of the year is always a great time to set goals for next year, improve processes, and clean up any accounts that are dragging your portfolio down. This sales driven economy is great: hiring has spiked significantly, and portfolios are growing at a record pace for most in the Equipment Finance industry. There are three ways we can help ensure your portfolio is heading in the right direction:     1.      Active Rehab Program Our innovative program helps to eliminate "late payers." As we all know, those who habitually pay late are much more likely to become problem accounts down the road. With zero fees charged to our clients for this service, and the program's ability to truly rehabilitate late payers, most of our clients wonder why they have not tried this service sooner.     2.      Late Stage Recoveries Your placed accounts are made an immediate priority. Within 24 hours, we will be in contact with your delinquent customer. During this period, we will also employ collection methods which include: skip-tracing, D&B reports and credit reports, utilizing social media platforms to locate the customer, and scrubbing for deceased or bankrupt customers. We also thoroughly investigate all documentation to determine best methods to collect. After our collection management team has become familiar with your account, we assign it to our senior collectors.  Another advantage to our collection program is we never use an auto-dialer for your accounts. We understand your delinquent customers are businesses, and they need to be treated with a different tact than consumers. It is our job to effectively motivate your past due customers to resolve the situation. By subscribing to the theory of "catching more flies with honey than vinegar," we mediate a reasonable solution that begins with an expectation of full repayment of the debt. We negotiate on your behalf with delinquent customers, their counsel, their representatives or agents; anyone we need to in order to get the debt resolved. When all is said and done and agreed upon by our client, we provide General Releases, Bills of Sale, or any other documentation needed to finalize the account. As with our Active Rehab Program, there are zero fees up-front. The only time we get paid is when we get results!3.     Professional Remarketing Services We are a full-service Commercial Collection, Recovery, and Remarketing Agency. For years we have been building an unrivaled database of trusted vendors. These vendors are at the ready to bid on all types of seized equipment. A minimum number of bids are obtained, with most equipment getting (10-15) bids. Our effective Remarketing process helps keep our client's exposure to liability very low, while maximizing the price the equipment is sold for- most often at maximum wholesale. Our zero fee up-front, results-driven approach, and habit of presenting our clients with remittance checks rather than bills will be refreshing. We absorb the costs for rigging, storage, advertising, condition reports, etc……Anything associated with or leading up to the sale of the asset is done from our one-time contingency fee when using our service. We have tested and proven ways to work with distressed accounts. Our process helps to sell the asset and prepare the Personal Guarantors for repayment of any deficiency balance. Call Shane Davis today at (651) 481-9548 to have him customize a plan for your collection and remarketing needs. Consultation is completely free- What do you have to lose?
by Shane Davis
Thursday, December 4, 2014
What do we do during the long Minnesota winter? 0 Shane Davis November 10th 2014...the first day of significant snow in Minnesota. We are not heading into spring, the season of new beginnings. We are not heading into summer, the season of vacations and relaxing at the beach. We are not heading into fall, the season of apples, pumpkins, football, harvest, etc. (you can tell which one I like best..) We are heading into the time of frozen lakes, which in Minnesota means over 10,000 of them. Short days, dangerously cold temperatures, snow covered roads, bored kids and cabin fever will be the norm. However, there are a couple of things that get me excited about winter...commercial collections and re-marketing equipment. This is truly our time of year to shine here at Delta Management Group, Inc. As I have told many clients, there is nothing better to do during a Minnesota winter, than make people that owe you money pay their debts. Many times clients will tell me that their internal collections department has "Hammered these to death. There is just no meat left on the bone." I am always quick to point out that in Minnesota, we know how to boil those bones and make soup for all to enjoy. It is a skill that all Minnesotans know all too well from our cold weather experience. As of today, we have six months of non-ideal weather to deal with, so take advantage of our need to take our minds off of this! Call me today (651-481-9548) and let's talk about how to customize a solution that makes sense for you and your company. Just like the weather varies from one place to another, we understand that our client's business models are unique to each of them. Don't work with a company that insists that you fit into the way they do things, try our refreshing and highly recommended approach to client services. I'll talk to you soon, and please send some good vibes this way for relief from the "Polar Vortex".
by Shane Davis
Monday, November 10, 2014
*Now Available* 4 Mistakes Collection Agencies Make... 0 Shane Davis "4 Mistakes Collection Agencies Make That Lenders Are Probably Unaware Of.." One of the secrets to success here at Delta Management Group, Inc. is our willingness to take on First and Second Placements when beginning a new Client Relationship. It gives our new Client a reasonable comparison to their current agency, and provides a challenge to our collection team. We are eager to jump right in and put our scrubbing, deep skip-tracing, and investigative processes to work for you, and results are realized very quickly.  How, one may ask, are we able to earn our way in and produce consistent results when collecting on accounts which have not only been worked by our Client, but also by another agency? While each delinquent account is unique, there are four mistakes we consistently see other agencies make which can cause liability to go up, and late stage recovery to go down: 1.)  The Army Tactic At Delta, we understand that when collecting from businesses, the “army tactic” does not work. What is needed is a “Special Forces” approach with collectors who have years of training and a proven track record of successful mediation skills. We effectively combine the right people and tactics to execute our results driven plan. Other agencies use the “one-size fits all” approach that seats need to be filled, calls need to be made, and that businesses and Personal Guarantors will succumb to the pressure. This pre-packaged, generic thinking may work with consumer debt, but when collecting commercial debt, a more professional approach is required. While other agencies use blanket generic tactics, we take a personalized, individual strategy to each account.  We have found this to be vital in a successful collections program. 2.)  Lack of Proper Investigation and Improper Use of Technology Have you ever received a solicitation call from a company that uses a dialer system? Wasn’t it bothersome that you said “hello” three times before anyone even acknowledged you? Now imagine you are a business owner who has not seen things go the way you planned. You have not been able to work it out with the lender and now the account has been placed with a third party collection agency. Who would you be more likely to talk to:  the automatic dialer system, or a real person who picked up the phone and called you? Another ineffective tactic other agencies use is a “random” account system that circulates accounts within their office. Every collector, from the most experienced to the least experienced has a shot at the account. There is very little, if any, proper investigation of the account and how to best work it. At Delta, we investigate the file at a management level, and then assign it to the proper experienced collector on our staff. That senior collector is given an adequate amount of time to properly investigate and work the account. This gives the delinquent customer one contact person, rather than having to explain themselves to multiple people. We deal with commercial accounts on a daily basis, and our collectors are always closing deals.  3.)  Poor Training, Employee Retention, Compliance and Security Missteps   While other agencies build a large staff of low base rate and entry-level new hires, Delta is staffed by senior collectors who understand the equipment finance and commercial debt industries. Our collectors enjoy their jobs, and are paid well. We feature a No-Cap internal commission structure that incentivizes our collectors by making unlimited income a real possibility. Nearly everyone can agree that in-house training is essential for collection success.  At Delta, we have a time-tested initial training program for new hires, along with ongoing training and education for all of our staff performed on a regular basis. We also have a strong commitment to external training, and this is what sets us apart from our competitors.  This lack of external training at other agencies can cause an increase in liability for all parties involved, and an increase in security missteps. Unlike other agencies, we at Delta pride ourselves in our collectors’ hunger for more information on current industry topics. Our management and collectors are passionate about our company’s exemplary compliance record. By keeping current with industry regulations, training, compliance matters and best practices, Delta has easily out-paced our competition.  4.)  Lack of Account Scrubbing, Skip-Tracing Shortcuts and More One of the worst mistakes an agency can make is taking shortcuts when scrubbing or skip-tracing an account. I am reminded of a situation with a new Client. This Client placed accounts that had been worked by their current agency without results. When we scrubbed the placements for current or ongoing bankruptcies, we were shocked to find that a number of them had filed bankruptcy prior to the other agency working them. Clearly, the prior agency had not done their job properly, and potentially exposed the Client to immense legal liability. At Delta, we scrub every account placed for bankruptcies. Not only is this a prudent business practice, but it lessens our Clients’ exposure to liability. Our skip-tracing department is second to none. We use up to ten different sources to get the most current information.  Other agencies have well spoken sales teams, big budget marketing plans, and lawyers fighting to keep settlements and court cases quiet. With so much of their time, money and energy split between these three areas, they inevitably become key components to their business model. Notice anything missing? At Delta, our budget is spent on something most other agencies seem to have forgotten, and that is improving collections and building trusted client relationships.  As you can see, the importance of constantly evaluating your agency relationships cannot be understated. Not only can an agency like Delta improve your late stage recovery efforts, but with our unblemished legal record, we have the potential to dramatically decrease your exposure to legal liability. For a free, no obligation quote for services, please contact Shane Davis, Director of Client Relations at (651) 481-9548 or sdavis@deltamanagement.us.  You can also visit our newly updated, client friendly website at www.DeltaManagementGroup.com. Let’s work together to customize a plan for you, because at Delta, our Client’s interests always come first!
by Shane Davis
Monday, October 20, 2014
Does anyone owe you money? 0 Shane Davis Does anyone owe you money? Have you used your internal collections process, but there has been no response to your efforts? Are you looking to partner with a company who takes a personalized approach and cares about collecting your money? Delta Management Group, Inc. is on your side. We are here for you, and we will be happy to take on the responsibilities of lettering, calling, and resolving the delinquent accounts that have been a thorn in your side. Zero up-front fees for ANY of our services: Collections Remarketing, Storage, Repo Filing claims for Bankruptcies, Estates & more Our Clients receive remittance checks instead of bills Recognized and Recommended Industry Leader: Fully customize your own plan for collections based on how YOU do business 15 year history with a spotless legal record and a history of producing amazing results Recommendation letters from our long list of satisfied and longtime Clients available upon request    Email or call me today, and check out our website for a complete list of all of our services. Does anyone owe you money? Do something about it with Delta: "Your Commercial Collection Specialists." Shane DavisDirector of Client RelationsDelta Management Group, Inc.651-481-9548
by Shane Davis
Wednesday, October 8, 2014
Stay out of the forest... 0 Shane Davis "The creation of a thousand forests is in one acorn."-Ralph Waldo EmersonThink of the power of the quote statement...Delta Management Group, Inc. will help you identify the bad seeds in the collection industry before they grow a forest of liability that surrounds you.Start by picking up our powerful new report, "4 Mistakes Agencies Make That Lenders Are Probably Unaware Of..." from our booth at the 2014 NEFA Funding Symposium in San Antonio, then fill out our exclusive Free Market Analysis while you check out our exhibit. The insights you will get from the report, followed by the customized professional analysis, will help you to determine whether your collection needs are being met and what you can do to improve your late stage recoveries.Please schedule an appointment with me as soon as possible to get a full presentation of our services. Don't miss out....I look forward to meeting you!You can reach me at 651-481-9548, email me at sdavis@deltamanagement.us, or visit our brand new interactive website deltamanagementgroup.com.
by Shane Davis
Tuesday, August 26, 2014
Top Notch Remarketing Services 0 Shane Davis Delta Management Group, Inc. is a full-service Commercial Collection and Recovery Agency. Since 1999, Delta has been building an unrivaled database of trusted vendors. These vendors are at the ready to bid on all types of seized equipment. A minimum of (5) bids are obtained, with most equipment getting (10-15) bids. Our effective Remarketing process helps keep our clients' exposure to liability very low, while maximizing the price the equipment is sold for- most often at maximum wholesale. Our Zero-Fees Up Front, results-driven approach, and habit of presenting our clients with remittance checks rather than bills will be refreshing. There are Zero Up Front fees for rigging, storage, advertising, condition reports, etc......Anything associated with or leading up to the sale of the asset is done from our one-time contingency fee when using our service. We have tested and proven ways to work with distressed accounts. Our process helps to sell the asset and prepare the Personal Guarantors for repayment of any deficiency balance. Call Shane Davis today at (651) 481-9548 to have him customize a plan for your collection and remarketing needs. Consultation is completely free-  What do you have to lose?
by Shane Davis
Friday, August 1, 2014
Schedule An Appointment With Me... 0 Shane Davis ....Close your eyes and think back to 2009......way back. Remember how collections and recovery ruled your every thought? Remember the sinking feeling every time you had to pick up that phone and call someone......a person you knew had good intentions, but those intentions couldn’t pay the bill?....   Back to the present. It’s summer 2014 and sales are going great! Payments are being made, and the NEFA Funding Symposium is on the horizon. Life in our industry is good! Whew!   Now is the time to evaluate those agency relationships you made. Unfortunately, some of the decisions may have been made in haste. You sometimes wonder......"What are they really doing with our placed accounts? Can we compare them to make sure we are getting the best service and return?"   Delta Management Group, Inc., one of the fastest growing and most recommended commercial collections agencies, will be exhibiting at the NEFA Funding Symposium in San Antonio this September. This is your opportunity to secure your time slot for a no-cost, no-obligation appointment with me for a personalized consultation about the future of your collections portfolio.   Don’t forget to pick up our highly anticipated report: “4 Mistakes Collection Agencies Make That Lenders Are Probably Unaware Of" and our free market analysis that goes hand in hand with the report.   Call or email me today to set your appointment, or to get started soon. Thank you and have a great Tuesday!
by Shane Davis
Tuesday, July 22, 2014
SBA requires loan data reporting 0 J. Dobbins SBA Requires Loan Data Reporting If you’re not reporting your loan data to the major bureaus, you may have an SBA guarantee issue! For over a year, the Small Business Administration has required that all SBA loans are to be reported to the major business credit bureaus at least on a quarterly basis. The updated Standard Operating Procedure 50 57 effective March 1, 2013 says, “Lenders are required to report information to the appropriate credit reporting agencies whenever they extend credit via an SBA loan. Thereafter, they should continue to routinely report information concerning servicing, liquidation, and charge-off activities throughout the life-cycle of the loan.” Our friends at the National Association of Government Guaranteed Lenders (NAGGL) have provided some additional insights and clarifications released by federal agencies on the topic since the SOP update was implemented. While most SBA lenders are generally familiar with the need to report debt collection and charge-off, it is clear that lenders must now report during loan servicing too. Furthermore, both current and delinquent accounts are to be reported. Also, reporting must be to at least one of the three major bureaus, D&B, Experian and Equifax. Smaller, industry specific bureaus, while helpful, will not meet this requirement. How does the SBA plan to enforce these requirements? NAGGL advises lenders to assume that it will become a factor in lender oversight reviews, as well as guarantee purchase review. However, since this is a new requirement, there is no basis on which to determine exactly how oversight might be implemented. If you care to study the matter yourself, we suggest the following resources: Small Business Administration’s website National Association of Government Guaranteed Lenders’ website Office of Management and Budget Circular A-129 Department of Treasury’s Guide to the Federal Credit Bureau Program The best practice is to report loan payment experiences on all accounts, regardless of any Federal guarantee. Lenders who report their payment data to the major bureaus get paid better. Advising your customers that their payment performance is being reported provides you more leverage to get paid on time. By reporting good payment behavior, you’re helping your “good” customers build their credit record, which enables them to grow their business. NAGGL suggests strongly that lenders ensure that applicants understand that payment and loan status information will be reported to the business credit bureaus. Business Credit Reports can report your data to all three of the major business credit bureaus - D&B, Experian and Equifax. It’s easy and it’s FREE. Call or e-mail me for more info.
by J. Dobbins
Wednesday, July 16, 2014
Lenders Are The Good Guys..THANK YOU!! 0 Shane Davis Thank you! (something you may not hear enough..)We all know being a lender has it's thankless moments. Seems like you are the customer's favorite, until a certain percentage of them cannot pay. The collection process, no matter how delinquent the account, is one of those thankless moments. Never mind that you were the one who pushed to get them the financing, or that you heard from them constantly before and during the funding transaction. When things get rocky, the person with the delinquent account shows their true colors.Here at Delta Management Group, Inc., we take on all of the stress and worry associated with a collection account. In the current economic climate, there are two things to remember about the collections side of your portfolio:1) Your company's time and focus is being shifted to the sales side, and rightfully so. One consequence is that collections could be slipping through the cracks. We at Delta keep your delinquent customer's "feet to the fire," ensuring that the expectation of repayment continues to remain as important as it was the day the contract was signed.2) Now is the time to partner with a Commercial Collection Agency you can trust. With a predictable and proven process, Delta will help you feel good about the future of your collections portfolio. As many of our clients previously experienced, waiting too long and allowing your portfolio to "manage you" is an uncomfortable and profitless venture.Call me and schedule your appointment for the NEFA Funding Symposium today. We are looking forward to building a relationship that will last through all of the ups and downs in this industry..and again, THANK YOU!!
by Shane Davis
Tuesday, July 15, 2014
Funding Symposium Exhibit Info 0 Shane Davis Good Afternoon!Hope this post finds you doing well on this fine Summer Tuesday..It is a glorious day in Minnesota. Isn't any day without snow a blessing in the upper Midwest?!Ever wonder what your collection agency is doing behind closed doors, and most importantly, on your behalf? Wonder no more!At the NEFA Funding Symposium in San Antonio, TX, Delta Management Group, Inc. is releasing it's "4 Mistakes Collection Agencies Make Lenders Are Probably Unaware Of."This must-read will be available only at the Delta Management Group, Inc. Exhibit in San Antonio this September. Don't miss out on this powerful, eye-opening, insiders look at our industry. See you at the Exhibit!
by Shane Davis
Tuesday, July 8, 2014
Shhh! Don't tell chuck... 0 Shane Davis Delta Force Update-- Remember the Alamo! Ever wonder what the battle at the Alamo would have been like if modern day action hero Chuck Norris was there? Well, Delta Management Group, Inc., the new Delta Force, is blowing into town September 18th-20th to win the war on commercial debt.   Unfortunately, Chuck Norris will not be there (that is in no way a challenge to your ability to be anywhere you wish at any time Mr. Norris, and I am very sorry if any of this is offensive to you sir......whew!).   We will be unveiling our "4 Mistakes Collection Agencies Make That Lenders Are Probably Unaware Of..." at the NEFA's Annual Funding Symposium in San Antonio, TX. See you at the Alamo! (When I'm not at the Delta Management Group, Inc. exhibit table, Ill be in the basement hiding from Chuck...shhh!)
by Shane Davis
Friday, June 27, 2014
NEFA Funding Symposium in San Antonio 0 Shane Davis Sneak Peek NEFA San Antonio Exhibit Content—Ever wonder if your agency really is putting your interests first? Would you like to get a "behind the scenes" point of view, and get a look at what really goes on once your valuable accounts are placed? A Recognized and Highly Recommended leader in Commercial Collections, Delta Management Group, Inc. has compiled a must-read insiders look at “4 Mistakes Agencies Make That Lenders Are Unaware Of…” Only available at our exhibit at the NEFA Funding Symposium. The Symposium runs from September 18th - 20th in San Antonio, TX. For more details on Delta Management Group, Inc. or for a free, no-obligation quote for our services, please call me at (651) 481-9548 or email me at  sdavis@deltamanagement.us
by Shane Davis
Thursday, June 19, 2014
Become a Business Credit Mentor 0 J. Dobbins             In this day and age, all businesses rely on credit to start, grow and survive. Whether it’s for operating capital, supplies, equipment, IT, or brick and mortar space, businesses will have to borrow in one form or another to obtain it.  Most company owners start out using their personal credit.  Over time though, they will need to establish business credit to take things to a higher level and grow the business.  Not all vendors look at personal credit when evaluating creditworthiness.  For the ones that do, personal alone may not be strong enough to get the credit lines needed.  If there isn’t any available credit data on the business, then they just set them up as COD or deny them.  The average person knows how personal credit works, but many business owners know very little about their business credit.  If you are in the business of extending credit to companies, whether you are a vendor, supplier, bank, leasing company or other, you see firsthand what their business credit looks like.  By giving some simple tips when needed, you can be a mentor to guide them to establishing, building or correcting their business credit.  This will make you invaluable to them and you will gain a loyal client. Here are some simple tips to tell owners about building their business credit: Know that there are three major bureaus for business credit and establishing a credit file with all three is crucial.  D&B, Experian and Equifax are the three major business credit bureaus.  Virtually every creditor will pull a report from at least one or a combination of the three.  You never know which one they are going to use though.  The bureaus don’t share data with each other.  One will have data the other doesn’t.  There are other smaller bureaus, but these three are the most widely used.   Get a DUNS number from D&B.  This is free to obtain and is required on many SBA loans and many banks require it too.  D&B is the most widely used business credit agency and businesses will need to establish a credit file with them to get a Paydex score and build credit.Open a business checking account and get a company credit card.  This is often the first way a company will establish legitimacy and get data on their credit file.  Their bank will likely require them to show that they have a federal Employer Identification Number (EIN) and to produce official documents showing that they incorporated the business or formed an LLC.  Most banks report to at least one of the bureaus and after a couple of use and payment cycles, this will start showing up on the credit file.Ask creditors about their data reporting policies. It is not mandatory for a creditor to report data to the bureaus. They won’t know if they don’t ask.  If a vendor does, find out which bureaus they report to.  If they don’t, either encourage them to, or go do business with ones that do.  Business owners who make sure that as many of their vendors as possible report, will build the best credit file the fastest.  If you are a vendor and you don’t report, start.  It’s as simple as sending in a monthly aging report.  It will help your good customers and give you more leverage with the bad ones.Pull a tri-merge business report once a year to check for errors and see which of their vendors are reporting.  Consumers are constantly reminded to check their credit once a year.  Doesn’t it make sense to do it on the business as well?  Mistakes happen and can be easily corrected.  Plus, demographics have to be updated.  If a business owner hires 10 more employees, moves or changes the chain of command, the bureaus won’t know this unless they tell them.  Updating this info is not as hard as a lot of people think.Pay invoices at least 5 days early.  You never know when the clock starts ticking.  Every vendor has their own policy as to when the payment clock starts.  Some suppliers will start the clock the day the order is placed, others when it arrives.  Not knowing when the terms start and paying at the last minute is the most common mistake businesses do which gets them mislabeled as slow pay. Just knowing these tips and sharing with your customers can go far in helping businesses, yours and theirs, grow and prosper.  These tips are free, easy and won’t get you labeled as a credit counselor.  Your customers will look to you as a mentor and business partner and the loyalty you gain will be well worth the extra effort.  In the end everyone wins.  If you want to know more, or your client needs their tri-merge report, or you need the contact info for the bureaus, please call or e-mail me.  I will be happy to provide whatever you need.     
by J. Dobbins
Thursday, May 29, 2014
Being Prepared For The Inevitable 0 Shane Davis We have all seen, or heard of, the shows on television that follow the lives of “Preppers”. These folks live their lives to prepare for an impending doom. Most all of us have little to no experience in any type of apocalyptic scenario. That goes for all those Preppers as well. Yet like worker ants, they blindly prepare.   The financial collapse midway through the first decade of this century, and resulting collections overload, should be a stark reminder to all of the importance of preparation. Now, I’m not saying we should all be as intense and obsessed as those depicted on television, but we can learn a lesson from our past.   Recent data from Equipment Leasing and Finance tracking sources puts overall sales in the pre 2008 range, and some companies are exceeding those numbers. While this is a great indication that the economy is moving in the right direction, foresight is extremely important.   We all love the best of times..it’s like the summer of our existence. We sell and collect with ease, and bask in the warmth of things running the way they should. Some, like the grasshopper in the famous cautionary tale, see no winter in sight. No preparation is made for the impending cold, and when the winter of an economic downturn hits, those unprepared are left frozen in their ways with out a source to turn to.   Unlike Preppers, we in the financial industry have seen a near apocalyptic collapse. Charge offs and collections are now dropping, and have been for some time. The regulations and lending guidelines set in place following the collapse have now begun to loosen. Money is more available for those who have less than “A” credit, and some have built credit back up after bankruptcy protection. **Spoiler Alert**..there will be another downturn! Charge offs and Recoveries will spike again.   What can we do to be more prepared for the inevitable? Aligning your company with a reputable, knowledgeable, and experienced Collection Agency is key. Here at Delta Management Group, we make the entire placement and collections process easy and predictable. While predictability isn’t usually a personal trait we strive for, it is crucial in a business relationship.   A placing company needs to know exactly the steps that are going to be taken on their behalf. They need transparency so they can check on placed accounts for progress, and most of all, there should be predictable and expected results. Building a lasting and mutually prosperous relationship should be the focus during this time. Even if your placements will be minimal right now, that relationship needs to be in place when the eye of the next storm hits. The process will already be in place, the results will already be predictable, and you will have a trusted source to help you work through it.   Remember, in economics there will always be peaks and valleys. Preparation and strong Agency relationships are the key to weathering the next Collections winter storm!
by Shane Davis
Tuesday, May 27, 2014
Using Tone and Inflection Correctly..Your Ace in The Hole 0 Shane Davis I love spring..the smell of rain on the pavement, the almost deafening sound of birds searching for a mate, and garage sale season! There is something nostalgic about vintage (or junk) items on display for all to bargain over and take home. My wife doesn’t appreciate the sometimes useless items I show up with, but it helps me to still feel connected to my past. History has always been my thing.   Last year I was perusing through a stack of old books at a sale in early spring, and I found it. “The Art and Science of Selling Vol V”, written and arranged by National Salesmens Training Association and published in 1922. It was a small brown leather bound book, with yellowing pages and lithograph artwork inside. I asked how much, was told $1, and after a quick negotiation I left with the book in hand for a quarter. I mean, you have to negotiate, right?   The book touches on every subject, from not over salting your meat at a client luncheon, to the use of punctuation and paragraphing. It is a plethora of good and humorous information and reading. Along with all of the entertainment value, I started to notice a growing feeling inside me..I had heard and seen this type of information before. Large parts, and the overall theme of this book go hand in hand with the way I have trained collectors for years. Use your words and tone of your voice as your Ace in the hole.   In my early training, I was told what to say and when to say it. I was told what signs to watch for,  and to always be closing. It was all very professional and adequate training. But it lacked a very important and relevant part, how do I say these things?   My Grandfather was a buyer and seller for all of his later years. He taught all in our family the art of buying at a garage, estate, or auction sales and selling for a profit. He seemed to have enough money when he needed it, but he was by no means wealthy. There seemed to always be a large amount of stuff around in some building on his property. I suppose that is where the nostalgia comes from every time I spend a Saturday at local sales. I spent a large part of my youth with him, and he would say, “Always keep an Ace in the hole boy, sometimes it can be your only option. That building right there is full of my advantage, my Ace in the hole in case I go broke.”   I didn’t forget what he told me. Early in developing my sales and collection career, I was looking for my Ace in the hole, and I found it. Our voice is the most powerful tool we have in our belt. By simply using the tone, inflection and words correctly, we influence everyone we come in contact with. Remember the old adage; you catch more flies with honey than vinegar? It still rings very true today.   Role play with the people on your sales or collections staff. After all, collections is sales in most every way. The debtor has to be sold on doing the right thing and paying their obligation. Practice using different tones and wording to fit each general personality type. Remember to use the skills you develop the next time you have someone on the line, and if it doesn’t work, try a different tactic the time after. With some practice and application in your daily interactions with people, you will soon be a words and tone All Star..you will have your Ace in the hole.
by Shane Davis
Thursday, May 15, 2014