I want to put the remaining balance through a finance company that I will own. I intend on not holding any paper unless the customer agrees and provides me there information to EFT the money. I do not want to monitor the incoming payments nor do I want to chase them if they stop paying. Is this possible? Also, do you know if there are any finance or collection companies out there that I could have manage the contracts after a sale for a percentage?
Thanks, Bill
Dear Bill,
If you open your own finance company you will need to hire someone or be the person to monitor the loans. If you use a finance company you don’t own, they would handle that.
If you have authorizations from the customers to withdraw or receive payments on time electronically, you will still have to monitor them, since you might run into in sufficient funds being available when the electronic payment goes through. You might also want to consider charging a fee for each time this happens, if you do this, include that information on the contract or authorization your customer signs before the sale so they are aware of the charges. That might make it worth your while a little more and avoid non sufficient funds problems.
Conrad Credit Corporation would be a good company to contact. They handle financing, collections and they have an entire billing department dedicated to manage monitoring of payments for clients for a fee/percentage.You can contact John Page at 760-735-5000 or email him at jpage@conradco.
You can also try VWA Inc. Robert Sherman, is a member of my Credit & Collections Group, his email is Robert_sherman@vwainc.com VWA provides several outsourcing solutions relative to the quote to cash cycle for financial services.
Another member of my group also offers the same type of services, his name is Matt Kennedy, and his email is vp1kennedy@yahoo.com, he currently does this for some local credit unions in his area.
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