When a business closes, accounts receivable become the secured creditor’s most vulnerable asset. Customers are aware the business has closed and are reluctant to pay what is owed. Customers also realize that institutional memory needed to press a claim may have been lost. With each passing day, the accounts grow less likely to be collected.
Key specializes in collecting accounts of recently closed businesses. Few collection agencies know how to enter a shuttered business, gather documents and digital information necessary to collect accounts, and engage former employees of the business to provide information and assistance.
Key was recently engaged by a secured creditor to collect $3.8 million in receivables for a closed distribution business. The secured creditor expected to collect less than $1.5 million. Key collected over $3.2 million.