Client Overview
Client: Atlas Dental Laboratories*
Debtor: Dr. Ray Turner, DDS / Mountain View Dental*
Industry: Dental Laboratories and Supplies
Location: Aurora, CO
Principal Amount: $11,411.71
Total Debt (including fees): $14,264.64
Date Placed: February 3, 2020
Date Closed: March 26, 2020
*Names and identifying details have been changed to protect the privacy of the parties involved. However, all amounts, timelines, and details reflect the actual case.
Situation
Atlas Dental Laboratories, a well-established dental supplier based in Pennsylvania, sought to recover a debt of $14,264.64 owed by Dr. Ray Turner, DDS, owner of Mountain View Dental in Denver, CO. Despite previous agreements and various attempts to settle the balance, communication between the debtor and Atlas Dental had deteriorated, leading the latter to engage Burt and Associates for assistance in recovering the outstanding amount.
Challenges
- Inconsistent Communication: The debtor initially cooperated but failed to communicate in a timely manner. Contact with associated parties, including vendors and partners, further complicated the case.
- Vendor Delays: Several vendors involved in the transaction delayed submission of invoices, adding complexity to the collection process.
- Added Fees: The client’s account included additional fees that fluctuated during the initial placement, making settling the debt more challenging and prolonging negotiations.
- Potential Legal Action: With no resolution in sight and a lack of communication, Atlas Dental was prepared to escalate the case, including filing insurance fraud claims, which further pressured the debtor.
Approach by Burt and Associates
Burt and Associates used a combination of direct negotiation tactics and systematic follow-ups to ensure compliance from the debtor. The approach focused on maintaining pressure on the debtor while preserving the business relationship for future interactions. Below are the key strategies implemented:
- Persistent Communication: Burt and Associates ensured constant follow-ups with Dr. Turner and the vendors. This included a mixture of phone calls, emails, and formal notices, documenting every interaction to build a solid case.
- Client Added Fees Management: Fees added by Atlas Dental for collection efforts were handled with transparency. To avoid disputes and delays, Burt and Associates ensured that all adjustments were well-communicated to the debtor.
- Vendor Engagement: One of the most significant hurdles was the involvement of vendors who were slow in submitting their documentation. Burt and Associates took the initiative to communicate directly with vendors and ensure all required documents were submitted to proceed with funding.
- Structured Payment Strategy: The debtor negotiated a structured payment to meet deadlines. Burt and Associates provided Mountain View Dental with flexibility, allowing the debtor time to gather vendor invoices.
Timeline of Events
January 31, 2020
- The debtor’s backup status for the invoice and statement was changed from “No” to “Yes,” signaling the initiation of the formal collection process.
- Atlas Dental added collection fees of $3,566.16 to the principal amount of $14,264.64. However, the principal was later adjusted to $11,411.71, and collection fees were updated to $2,852.93.
February 3, 2020
- Burt and Associates sent a formal notice informing Dr. Turner of the outstanding debt.
February 13, 2020
- No response from the debtor was received. Further follow-up emails were sent, requesting payment confirmation before February 17, 2020.
February 17, 2020
- Communication with vendors began. Premium Choice Health Financial, representing Dr. Turner, requested official invoices to proceed with funding. Burt and Associates submitted all required documents promptly.
March 4, 2020
- Delays continued as the debtor’s vendors failed to provide necessary invoices. Burt and Associates communicated with Dr. Turner, ensuring the case remained active despite the delays.
March 18, 2020
- The debtor confirmed that documentation was being processed and that payment would be issued after the final signatures.
March 26, 2020
- Burt and Associates successfully secured the full payment of $14,264.64, resolving the case without legal escalation. The final amount included client-added fees and collection costs.
Outcome and Key Takeaways
Debt Recovery: Burt and Associates recovered 100% of Atlas Dental Laboratories’ outstanding debt, securing a total of $14,264.64. The recovery restored the client’s cash flow and ensured no legal action was necessary.
Strategic Follow-Up: Persistent communication and documentation of all interactions were crucial to maintaining pressure on the debtor and their vendors. This prevented the case from stagnating despite significant delays.
Vendor Management: Direct involvement with third-party vendors helped streamline the submission of necessary documents, allowing the case to move forward.
Client Trust: Burt and Associates’ handling of client-added fees with transparency ensured the debtor did not dispute charges and contributed to a smooth resolution.
Avoiding Escalation: By engaging in continuous negotiations and structured communication, Burt and Associates prevented the need for filing legal claims, preserving the business relationship between Atlas Dental and Dr. Turner’s practice.
As a finance manager, you understand the importance of a smooth and timely financial close. But even with the best strategies, challenges can arise. That’s where the right partnership can make all the difference. At Burt and Associates, we specialize in tailored, ethical debt collection practices that align with your business goals. By integrating our services, you can focus on optimizing your financial close process without the added stress of managing overdue accounts.
We know every business is unique, and that’s why we work closely with you to develop a customized approach that meets your specific needs. Whether you’re dealing with complex financial situations or simply looking to improve cash flow, our team is here to support you every step of the way.
Let’s turn those strategies into results together. Take the first step towards a more efficient financial close by reaching out to us today.
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At Burt and Associates, we prioritize building strong business relationships through tailored, ethical debt collection practices. Choose the approach that best fits your needs, and let’s take the first step toward improving your cash flow. If you have questions, please chat with Burt Bot for quick assistance.
