Skip Tracing

Definition: The process of locating individuals or businesses that cannot be reached through their last known contact information, often used when a debtor has moved, changed numbers, or is intentionally avoiding communication.

Examples: A commercial collection agency may use skip tracing to locate a business owner who has defaulted on outstanding invoices and is no longer responding to calls or emails.

A commercial lender relied on skip tracing after multiple failed attempts to reach a company that had relocated without providing updated contact details. By using public records, business registrations, and third-party databases, the agency was able to identify the company’s new operating address and resume communication.

During negotiations, a collection agency used skip tracing tools to confirm the current ownership and legal status of a business that had fallen behind on payments. This information allowed the creditor to move forward with a structured repayment plan rather than escalating to litigation.

Skip tracing became essential for the creditor’s risk-management strategy, helping verify decision-makers, confirm active locations, and ensure that the responsible parties could be contacted for resolution. Without accurate location data, collection efforts would have stalled.

Effective skip tracing allowed the creditor to avoid unnecessary legal action and helped the business settle its outstanding balance. With updated contact information, both parties were able to communicate openly and work toward restoring the account to good standing.