Debt Collection Recovery Rates for Material Providers in New York and New Jersey

Debt Collection Recovery Rates for Material Providers in New York and New Jersey

What is the likelihood for a construction materials company to collect on past due accounts? Many factors affect the recovery rates for construction debt. Statistics on New York and New Jersey collection claims are good indicators of the collection rate.

Debt Recovery Rates for New York and New Jersey

New York based building supply distributors can expect to recover around 86 percent of debt claims. New Jersey has a similar debt recovery rate—about 85 percent. On the flip side, approximately 15 percent of bad debt accounts go unpaid. By analyzing the data, material providers can see the effects that certain factors have on the collectibility of each claim. These statistics help material suppliers for the construction industry enact data-based changes to their collection process.

Collectibility Factors

No two accounts are the same. The steps required for debt recovery depend on the terms and conditions stated in the contract as well as any unique circumstances. These six factors affect the collectibility of construction industry debt:

1. Age - An older claim may be more challenging to recover. If the statute of limitations has expired, it may be too late. 

2. Location - Debt collection regulations vary between states. Know your rights in New York and New Jersey.

3. Documentation - What records substantiate your claim? Document all correspondence relating to your business relationships.

4. Time - Your internal collections team lacks sufficient work hours to chase no-pay accounts.

5. Ability to Pay - Some customers may have filed for bankruptcy or gone out of business. Others may have been injured.

6. Willingness to Pay - When customers are unwilling to pay, requests may be ignored or delayed.

A bonded debt collection firm with years of experience will know how to handle individual cases in the construction industry. Schedule your no-risk debt evaluation—call The Kaighn Company at 908-319-5155 or email cmdevito@kaighnco.com.