Q. When should the firm refer delinquent A/R for Third Party Collection ?

A. The firm’s ‘point of intolerance’ should be reached when the delinquent A/R meets these three criteria:

THE RULE OF THREE

1. The A/R is aged more than 365 days


2. The client has made no payment on the delinquent A/R in the past 365 days


3. The client owing the A/R has placed no new business that has been paid for in the past 365 days

Once the delinquent AR has met these three criteria it is usually wishful thinking to categorize that client as anything but an 'ex-client', one who has no intention of paying the bill unless third party collection effort is brought to bear.

Firms with good billing and collection procedures in place should achieve realization rates of 95% per annum or better. It is simply not cost-effective for the in house collection personnel to try to collect the perennial 'worst 5%' of the ledger, after one year has elapsed.

APS is the only national agency with the appropriate levels of experience, discretion and professionalism necessary to meet the special needs of professional service firms.

Please review our Partial Law Firm Reference List to get an idea of the caliber of our experience.

APS provides these services on a strict contingency basis, per the Schedule of Rates.

We will be happy to answer any questions or provide any further detail that you may require and/or to meet with the firm to discuss our services and customize a proposal for your firm.

The purpose of On-Site Contract Collection Services is to facilitate the collection of A/R owed by the firm’s ‘on-going’ clients.

• The targeted A/R are typically from sixty (60) to three hundred and sixty-five (365) days past-due


• These current clients are to be contacted by APS’s own contract-employee(s), operating on your firm’s premises, acting in the firm’s own name


• The targeted A/R comprise approximately seventy-five to ninety-five percent (75%-95%) of the firm’s total billings


• The typical tenure of APS’s on-site contract-employee(s) is from a one (1) up to two (2) years, with the expectation that the firm will ‘hire away’ the contract employee at the end of the term of the contract


• A ‘buy-out’ provision is offered if the firm desires to acquire the APS contract-employee(s) as its own permanent employee(s)


• Fees are from Sixty to Seventy-Five ($60.00-$75.00) Dollars per hour based upon the number of employees, seniority and length of the contract

The purpose of Off-Site Contract Collection Services is the reconciliation and collection of A/R owed by the firm’s ‘on-going’ clients.

• The A/R are typically from sixty (60) to three hundred and sixty-five (365) days past-due


• It will comprise approximately seventy-five to ninety-five percent (75%-95%) of the firm’s total billings


• All collection calls are made by APS’s regular employees, from APS’s own premises, but still acting in the firm’s own name


• APS’s regular collection staff act ‘invisibly’ bringing their highly trained skill-set to bear with respect to on-going client A/R


• The ‘invisibility’ factor insures that no adverse ‘collection agency’ image is projected to on-going clients


• At the same time the firm realizes the benefit of having highly trained, closely managed, professional service collection specialists reducing outstanding A/R


• Certain logistical and call-forwarding and/or tie line capabilities are necessary


• Services may be used either on a ‘regular’ or seasonal (i.e. year-end) basis


• The firm retains the right to designate all or any portion of its on-going clientele for the ‘invisible’ collection effort


• Fees for these services are Sixty ($60.00) Dollars per hour based upon a minimum contract of 500 Hours per annum

For a flat fee to be negotiated with your firm based upon the firm’s specific needs APS can provide an A/R Survey and Analysis based upon a review and analysis of the Aged Trial Balance and a sampling of Invoices and Detailed Billing Record(s) (DBR’s).

The object of the analysis is to provide a realistic estimate of the projected collection hours and description of possible staffing models in the context of industry best practices.

The ultimate aim of the analysis is to assist the firm and improve overall realization rates, and reduce Average Days To Pay (ADTP) by predictable and reliable amounts.

Lastly, the analysis contemplates the issues and remedies from a ‘cost-benefit’ perspective.

APS also offers consulting services for Credit Management to  either:

• Outsource the Credit Management function; or


• Build and staff an in-house Credit Management Department.

Detailed materials on these services will be provided upon request, including:

• An explanation of the function of professional credit management and the desirability for law firms to use this tool to prevent and minimize collection problems


• An explanation of how credit management works and the rationale for performing financial due diligence and establishing set standards for ‘acceptable risk’


• A description of the processes and procedures that need to be put in place by the law firm and how the partners will take in new business using those procedures


• Caveats for the successful implementation of Credit Management at law firms


• A detailed listing of the services APS will provide as part of its Credit Management consulting services


• How the implementation of Credit Management can be ‘sold’ to the firm and its partners


• Fixed Fees for these services are negotiated with the firm on a case by case basis

If you would like to submit accounts for collection on the next two pages are PDF documents that can be downloaded and filled out that are entitled: Client Information Form and Claim Check List.  Download the documents, fill them out and send them either as email attachments to apsinc@advocatesprof.com or print them out and fax them to APS at (516) 594-4519.

• Client Information Form


• Claim Check List