Generally speaking, in construction payment related legal proceedings, there are three methods in which an attorney or collection agency will receive compensation for their work to recover unpaid debts.
The first being compensation by hourly rate, often used by attorneys as they document all hours that are spent on a specific case and bill their client for those hours.
The second way is via a flat rate compensation model, where the total cost for the services provided are agreed upon up-front and that is the figure paid regardless of the time it takes to accomplish.
The final method of compensation is a contingency fee. At GreenLight Maximum Recovery, we believe it’s the only way to operate.
What is a contingency fee?
Using a contingency fee model, a client pays nothing out of pocket to their attorney or collection agency until they have successfully recovered the unpaid debts they were hired to collect. Instead, the attorney or collection agency is rewarded for their work with a percentage of the total recovered funds.
Why is a contingency fee best?
Let’s start with the downside of NOT using a contingency fee…
In this example, we have a materials supplier that is supplying $8,000 worth of concrete to a project. They supply the materials that are used on the job but are unable to get compensated for their supplies. If they consult an attorney and agree to an hourly or flat-rate payment contract, they’re gambling thousands of dollars to try to recover their $8,000 debt, with no guarantee of resolution. They could very well end up having to write off both the debt and the additional cost of trying to collect it.
Now, let’s consider the upside of using a contingency fee…
That very same concrete supplier could contact GreenLight Maximum Recovery in hopes of recovering the $8,000 debt owed to them for supplying concrete for the project. If they do, they’d pay absolutely nothing out of pocket and would have zero risk. There is no gamble when it comes to contingency fees and that’s why we use them, we wouldn’t gamble on uncertain outcomes when it comes to collecting debts, so we set up a system that only rewards us upon success.
The GreenLight Advantage
We are not attorneys, and at GreenLight Maximum Recovery we believe that’s one of our strengths. When it comes to collecting unpaid debts, attorneys are subject to a different set of rules than we are. As a licensed debt collection agency, we have the ability to do everything an attorney would do to collect your debt by sending letters and filing liens, but with the added capability of an outbound call center.
An attorney cannot legally pick up the phone and reach out to your debtor to mediate a resolution. At GreenLight Maximum Recovery, we find that the vast majority of our resolved disputes come from direct verbal communications between our outbound call center and debtors.
Our role as objective mediator in all disputes gives us the ability to hear both sides of the story and lead the involved parties to a resolution. If we’ve exhausted every effort and a dispute must go to litigation, we partner with the most experienced attorneys to continue recovery efforts, and they work on a contingency basis too.
Contact a GreenLight Maximum Recovery professional today to experience the advantage.