Skip Tracing is the process of locating debtors whose contact information is no longer accurate. It can run the gamut from checking phone books all the way to searching a massive amount of publicly and privately available information. Often, companies have to purchase access to this information or hire a collection agency that already has access as part of their services.
Skip-tracing will continue to be an important part of the debt collection process. However the manner and method may evolve over the period of time, there will always be a need to find a debtor’s correct and valid contact information. One interesting change in recent years is that since more consumers are ditching landlines in favor of mobile phones, a cell number is becoming an increasingly reliable path to find someone…and therefore open a line of communication to improve your accounts receivable management.
How will my company benefit from it?
The ability to locate a debtor means that you may have a chance to recover debts that are owed. Otherwise, if someone ‘skips’ town after a procedure you’ve performed, or after you’ve loaned them money for personal or educational reasons, you may never see that money again. While finding a person does not automatically mean you will recover the entire debt, it does mean that you might get something back.
Why do I need a collection agency?
Skip tracing is a complex and specialized job. Your employees will be spending a lot of time tracking people down, and that time could have been better spent elsewhere. Usually, it is cheaper to outsource your collections than to have employees trained in skip tracing as well as their primary duty.
Skip-tracing is a necessary skill that enables businesses to locate debtors and generate revenue. Because the process can be time intensive and requires specialized knowledge and access, it is often best to outsource this function.