Have you ever noticed folks that have two hands? Most of those hands work together as a team. Occasionally, you do see someone’s hands working independently of each other, such as playing a musical instrument or a martial arts move, etc…However, seldom have I ever seen two hands totally unaware of the existence of the other, why is that? Both hands report to the same boss, the brain.
Collections and skip tracing are much like those hands. Let me explain. Most in the collections industry collect, obviously. Sometimes those accounts have good contact information-sometimes not. This is where skip tracing comes in, again obvious. Most companies follow the rule that skip tracing can be folded into collections. Well, that is one way. But, collections and skip tracing are two different hands that report to the same boss, the bottom line. Let those hands work together as a team. It is time to create a successful skip trace department.
A collector by definition is someone who brings in the money. A collector usually uses some sort of a direct approach to collect said money. Therefore, to be productive as possible, their time needs to be utilized doing just that.
Skip tracing takes time, it is a different mind set from collections. Most times, the direct approach may not work. Different resources and skill sets are used.
You probably have the collection “hand" under control. Now we need to work on that skip tracing “hand".
Let’s create an internal skip trace department for your company. Before you start hyperventilating, let me explain. It does not have to big and extravagant. It does not have to be labor intensive. Most importantly, it does not have to be expensive. OK, your breathing should be back to normal again, good.
A basic blue print for starting your own successful skip trace department includes keeping in mind this is for a perfect world. You may need to customize it to meet the exact needs and abilities of your company.
Location- Let the location be separate from your collections department. If possible, it needs to be in a quiet area. Skip tracers need to think, give them a place to do it. You might want to keep the skip tracers in the vicinity of the collections department so that they can compare notes when needed.
Flow- Develop 3 different levels of skip tracing. Each level having certain resources. With each level let the investigation intensify. However, ensure that if the account has to move to the next level the transition is seamless.
Personnel- A skip tracer by nature is inquisitive. Start with your collectors. Listen for the ones that ask A LOT of questions to the debtor. Look for the ones that take A LOT of notes. If that doesn’t work try hiring someone part time. Let them get a percentage of the find, thus reducing your cost. I would also add here that you may wish to get someone with prior experience. The reason is simple. It would be a shame to train someone and then they decide that skip tracing is not for them.
Resources- Yes! There are a truck load of free resources that are available and that can help with your information needs. I have listed several in previous issues. There are also subscription sites. In a previous issue I reviewed several of them. Join skip trace and debt recovery forums to get the latest update information. Read Collection Advisor. A shameless plug, I know.
So, let’s take all of this and put it into one pile of putty. May I suggest this order: 1. Create a skip trace checklist- determine the flow and the amount of information obtained per level of investigation. 2. Determine the number and compensation of each level of your skip trace department. 3. Get the necessary resources for your skip trace department and determine the flow of 4. Hire experienced skip tracers. 5. Setup their area in a quiet place. 6. Start locating accounts. 7. Review until you get the kinks out. There you go. The skip trace “hand". The basic blue print of a skip trace department. Ya see, it wasn’t that hard. I will throw this in at no additional charge. I strongly suggest joining a forum. This provides multiple benefits: contacts, a trusted network, new information and so much more.
I hope that you found this information to be HANDY……. (I’m sorry, I couldn’t resist). As always, Happy hunting. www.accurateintell.com
This was a good, very basic outline. I have been skiptracing for 15 years. I like that you recognized that skiptrace and collections are 2 different mindsets. So many people think it's just all the same, skiptrace then collect it, boom, you got money! It's not that way. Thank you
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