Latest / Receivables Podcast | Discussions About Debt Collection / Navigating Commercial Credit and B2B Collections ┃ David Schmidt | Ep. 295

Transcript

Navigating Commercial Credit and B2B Collections ┃ David Schmidt | Ep. 295 · Receivables Podcast | Discussions About Debt Collection

• 0:07
  SPEAKER_01: Hello, everybody.
• 0:08
  SPEAKER_01: Adam Parks here with another episode of Receivables Podcast.
• 0:13
  SPEAKER_01: Today we're going to take our episode in a different direction.
• 0:16
  SPEAKER_01: We're going to take a step back from the consumer credit world and we're going to talk a little bit more about the commercial space.
• 0:23
  SPEAKER_01: As we've seen in the Transunion Debt Collection Industry report, organizations that are looking to diversify their businesses from the consumer sector often look at commercial as one of those avenues for diversification.
• 0:35
  SPEAKER_01: And so in my copious time on LinkedIn, I met David Schmidt, who has a lot of commercial expertise to share with us today.
• 0:43
  SPEAKER_01: David, thank you so much for coming on, sharing your insights.
• 0:46
  SPEAKER_01: I really do appreciate your time today.
• 0:47
  SPEAKER_00: Thank you, Adam.
• 0:48
  SPEAKER_00: I'm glad to be here.
• 0:49
  SPEAKER_01: So, David, you and I have just started getting to know each other.
• 0:52
  SPEAKER_01: But for anyone who has not been as lucky as me to get to have a few conversations with you, could you tell everyone a little about yourself and how you got to the seat that you're in today?
• 1:00
  SPEAKER_00: Sure, be glad to.
• 1:02
  SPEAKER_00: So out of college, I ended up uh getting a job with Dun and Brad Street, writing credit reports back when they used to have people on the street doing it.
• 1:10
  SPEAKER_00: So uh that was my introduction to commercial credit.
• 1:13
  SPEAKER_00: And uh from there got some uh positions in uh mid-market companies, went through a number of them, realized I liked cleaning up the department and getting things working and organizing it.
• 1:25
  SPEAKER_00: But once that was done, managing wasn't as interesting.
• 1:27
  SPEAKER_00: So when the opportunity came, uh I went out on my own.
• 1:31
  SPEAKER_00: I had a newsletter opportunity that helped support it.
• 1:35
  SPEAKER_00: And so I've always had a a writing component to my consulting and uh, you know, did that for uh actually been doing that since '94.
• 1:43
  SPEAKER_00: So uh writings was an important part of it because that really fed my pipeline.
• 1:48
  SPEAKER_00: And uh that's the the content management before there was content marketing.
• 1:52
  SPEAKER_00: So yeah, that uh that got me to where we are today, and I'd worked for a long time with a newsletter called Credit Today.
• 2:00
  SPEAKER_00: It was unfortunately closed in 23.
• 2:03
  SPEAKER_00: And a buddy of mine who was also working on it, uh Bob Schultz, uh, we tried to purchase it.
• 2:08
  SPEAKER_00: That fell through.
• 2:09
  SPEAKER_00: And so we just started our own newsletter, which is called Trade Credit and Liquidity Management.
• 2:13
  SPEAKER_00: And so that's been live for about a year and a half, and we've been building that up, and we're reaching out to a broad community of corporations, but also the ecosystem that supports that.
• 2:26
  SPEAKER_00: So we're trying to help all the business-to-business receivables management people, the order-to-cash people, and also the whole vendor support community that's in there.
• 2:35
  SPEAKER_00: We're trying to help people do their jobs better and also connect them to the other organizations that can help them do their jobs better.
• 2:42
  SPEAKER_01: Well, it sounds like a lot like what we do in the consumer space.
• 2:45
  SPEAKER_01: You're doing in the commercial space, and that is exciting for me to get to meet somebody else because I know from experience that when you write on a subject matter, you have to become an expert on that subject matter.
• 2:56
  SPEAKER_01: You have a lot of time to research, learn, understand, interview, and you find yourself kind of at the epicenter or at the true center of that topic and that community that develops around it, especially as you're creating consistent and powerful content for a space.
• 3:12
  SPEAKER_01: So I'm really curious from a commercial perspective, right?
• 3:16
  SPEAKER_01: As you think about the commercial space, and I'm sure you've seen some of the consumer space, what do you see as those core and key differences between those two worlds?
• 3:24
  SPEAKER_00: Yeah, there's quite a bit of differences.
• 3:26
  SPEAKER_00: And I've done some consulting that with companies that were on both sides of it, and uh they were having a problem managing the commercial side of it because they were trying to do it like a consumer.
• 3:38
  SPEAKER_00: And uh it it it just doesn't work.
• 3:40
  SPEAKER_00: Uh the commercial side, consumers are pretty homogeneous.
• 3:44
  SPEAKER_00: So one consumer is very much like another.
• 3:46
  SPEAKER_00: You know, you have higher and lower risk, but otherwise, consumers are pretty much the same.
• 3:51
  SPEAKER_00: The businesses, it's it's not so much.
• 3:54
  SPEAKER_00: So businesses are a diverse group.
• 3:56
  SPEAKER_00: You know, there's like 900 different NACE codes, and uh, you know, each industry is different.
• 4:03
  SPEAKER_00: Uh and collecting in each industry is different.
• 4:06
  SPEAKER_00: Collecting for uh in the construction industry is a lot different than manufacturing, a lot different than consumer product goods companies.
• 4:14
  SPEAKER_00: So all of these different companies uh have different frameworks, you know, that uh the collector and the credit analyst up front before that, you know, have to deal with.
• 4:25
  SPEAKER_00: And so it's a a different uh very different uh situation.
• 4:30
  SPEAKER_00: And companies have different channels.
• 4:32
  SPEAKER_00: And so they can be dealing with multiple industries.
• 4:35
  SPEAKER_00: So that's that's what makes it a lot more complicated.
• 4:38
  SPEAKER_01: Well, that's interesting because it's uh I think about it like a bank, right?
• 4:41
  SPEAKER_01: Like Chase is lending auto, they're lending credit card, they're lending mortgage, they're lending right through a variety of different credit products, and your average business who has not set out to be a lender kind of inadvertently becomes an extender of credit in the commercial space, especially if you've got net payment terms, whatever that is, 15, 30, 90, six, whatever, whatever the magic number is for your organization.
• 5:06
  SPEAKER_01: But then you start to think about the different industries that they're functioning in simultaneously.
• 5:10
  SPEAKER_01: And I know from experience that there's a a big difference in the way that I would handle a credit card versus an auto account.
• 5:17
  SPEAKER_01: And if I'm not a bank who's built to service accounts, that's got to come with a lot of challenges.
• 5:23
  SPEAKER_01: Are like what are we looking at in terms of delinquency, deficiency, and in charge off rates?
• 5:29
  SPEAKER_01: I mean, it was I guess let me start with this.
• 5:31
  SPEAKER_01: The credit cycle itself, when we think about the commercial space, right?
• 5:35
  SPEAKER_01: Consumers are 180-day delinquent on credit card before charge off.
• 5:39
  SPEAKER_01: Is it as standardized on the commercial side or is it a little bit more flexible per organ per creditor?
• 5:47
  SPEAKER_00: Yeah, it's uh it's a little more flexible, and that depends a lot on the organization.
• 5:51
  SPEAKER_00: So, you know, what what you have too that you're dealing with, and another differentiator, and this will help answer your question, is that you're dealing with the 80-20 rule.
• 6:02
  SPEAKER_00: So 20%, sometimes just 10% of your customers are providing 80 or 90% of your revenue.
• 6:09
  SPEAKER_00: And that makes for a whole different ball game than consumer, where everything is in a probably in a band, let's say.
• 6:18
  SPEAKER_00: So you you've got to deal with not only with the different industries, you've got to deal with the different size accounts and uh you have key customers and then those not so much important customers to you.
• 6:30
  SPEAKER_00: So uh, you know, that all all reflects how you go collecting things.
• 6:33
  SPEAKER_00: When I started in this industry, people were collecting from uh an age trial balance.
• 6:39
  SPEAKER_00: So they'd it'd be a printout and they'd be going through it either alphabetically or they might be able to get a list of the oldest debts to the most recent and they'd go through it that way.
• 6:49
  SPEAKER_00: So there wasn't any strategy to it.
• 6:52
  SPEAKER_00: And uh automations helped change that uh and bring back strategy to it so that you uh you want to be able to uh approach the accounts i in an organized and efficient way.
• 7:04
  SPEAKER_00: So you're collecting max max uh dot you're optimizing the cash flow coming through.
• 7:09
  SPEAKER_00: So that's that's something that we worked on.
• 7:12
  SPEAKER_00: I I wrote a book on automated collections with Fred Pomelli, who is the founder of Get Paid Software.
• 7:18
  SPEAKER_00: So this back in 98, we wrote this, and he had come over from AT ⁇ T and he had been working there, and he saw the obvious difference between consumer and commercial.
• 7:28
  SPEAKER_00: So his company wrote the first commercial collection package.
• 7:31
  SPEAKER_00: And uh it completely changed the way people were handling collections because you could you had to prioritize things in a different way, and that efficiency in the workflows really affected how how people collected.
• 7:43
  SPEAKER_01: Aaron Ross Powell Is there a difference in the communication channels that are being used from a collection standpoint, right?
• 7:49
  SPEAKER_01: Like letters have always been, or from a consumer standpoint, letters have always been the core requirement, right, until Reg F and things have kind of loosened up and changed a little bit.
• 7:59
  SPEAKER_01: But we've we do that phone calls, now we've started to move into text messages and emails, and that's become more popular.
• 8:05
  SPEAKER_01: Do you see the same kinds of processes or that same kind of prioritization on the commercial side in terms of the communication channels?
• 8:14
  SPEAKER_00: Yeah, there certainly has been that.
• 8:16
  SPEAKER_00: Uh we don't have the regulation that the consumer side has in terms of our contact.
• 8:21
  SPEAKER_00: You're contacting a business after all, not a person.
• 8:24
  SPEAKER_00: So it's, you know, you don't have to worry about after business hours and things like that.
• 8:28
  SPEAKER_00: Uh the challenge we have is getting through to the AP department very often.
• 8:33
  SPEAKER_00: Uh so today we're using a lot of a lot of email.
• 8:37
  SPEAKER_00: Uh text messaging is starting to grow in that.
• 8:41
  SPEAKER_00: Um, you know, and we've gone through letter and fax and all those things before.
• 8:45
  SPEAKER_00: But what's what's changing it a little bit now, too, is the the call, obviously, at some point you got to make a call if it's not being paid.
• 8:53
  SPEAKER_00: And AI is changing that a little bit because AI is handling all the upfront messaging, you know, that can be done in the background, the text and the uh the emails, and it's moving the strategies along.
• 9:05
  SPEAKER_00: And so when the time comes for a call, it's gonna be a much more difficult call.
• 9:10
  SPEAKER_00: It's not the easy, hello, I'm calling up, you got these two invoices, they're 20 days past due, you know, when you're gonna pay them.
• 9:17
  SPEAKER_00: Uh now it's, you know, okay, what's the problem and you know, how can we resolve this?
• 9:22
  SPEAKER_00: And so a lot more negotiation and not more opportunity to have to come up with a payment plan.
• 9:28
  SPEAKER_00: So it's putting, you know, the collector can't come in and, you know, get warmed up on easy calls, a new collector.
• 9:35
  SPEAKER_00: They've got to be trained and able to handle the more difficult calls right from the get-go now.
• 9:40
  SPEAKER_01: Which I think is similar to what we're seeing on the consumer side.
• 9:43
  SPEAKER_01: The the use, for example, of AI bots or voice bots has been started on the inbound side of the world, being replacing IVRs to handle that incoming call.
• 9:55
  SPEAKER_01: We have started to see some of that outbound, but it feels like the balance that you're dealing with for commercial requires a more direct or personal touch, right?
• 10:06
  SPEAKER_01: The higher the average balance, the more likely it is to, you know, to be dip more difficult to collect.
• 10:12
  SPEAKER_01: Has that been your experience?
• 10:13
  SPEAKER_01: And, you know, I mean, what like help me understand from a product perspective, like what kinds of average balances are we dealing with so I can give some perspective to that consumer collector?
• 10:24
  SPEAKER_00: Yeah, well, the average balance is gonna vary based on product, but mainly based on product.
• 10:30
  SPEAKER_00: So, you know, so some companies are dealing in the hundreds and the low thousands, other companies are dealing in the fifty thousands up to the millions.
• 10:39
  SPEAKER_00: And so yeah, when you Yeah, there's there's certainly uh when things get above ten thousand dollars, uh, you know, then that that's serious money, you know, even if you're a company doing mostly fifty thousand dollar invoice, ten thousand is not to, you know, la nothing to laugh at.
• 10:58
  SPEAKER_00: So, yeah, so it uh and the other thing with uh commercial is there's a relationship that gets built up there between the two companies.
• 11:05
  SPEAKER_00: So you have that, you know, it's a supplier-vendor relationship in many situations, and that's an ongoing thing.
• 11:12
  SPEAKER_00: So you have to navigate that as well.
• 11:14
  SPEAKER_00: So there needs to be a lot of alignment with sales and information being traded back and forth there so you can service the customer.
• 11:21
  SPEAKER_00: And that's another trend that's happening in commercial, is that uh uh the back office is moving much more up front.
• 11:28
  SPEAKER_00: Even though uh collections has always been customer-facing, companies are realizing that that back office function needs to be front and center and it needs to be part of the whole customer experience and tied in there.
• 11:40
  SPEAKER_00: And so you got to get rid of the silos in uh commercial, uh, or else you run into a lot of problems.
• 11:47
  SPEAKER_01: I think that's the case everywhere.
• 11:49
  SPEAKER_01: Uh you know, one of the challenges that we've seen on the consumer banking side, and I'm I'm curious as you're dealing on the commercial side, is the consumer lender, for example, may have acquired multiple organizations over time.
• 12:04
  SPEAKER_01: The data's being housed in multiple places, and they've got some data issues that they need to clean up in order to be able to sell a portfolio, in order to be able to collect on a portfolio, et cetera.
• 12:14
  SPEAKER_01: Do you see those same kind of challenges on the commercial side where organizations are using multiple systems or different systems for different products, and they've got a more siloed data set, for example, that's gotta create some complication in leveraging artificial intelligence.
• 12:31
  SPEAKER_00: Yeah, no, that that's not so much a problem.
• 12:34
  SPEAKER_00: Uh what happens is when there's mergers and acquisitions, then you have the multiple systems, and that's that's when it shows up.
• 12:41
  SPEAKER_00: And uh yeah, and that and that can be a a a big hassle.
• 12:45
  SPEAKER_00: Uh so you know, it it's pretty much the same system across the whole organization.
• 12:50
  SPEAKER_00: As you get into global organizations and different business units, there's a little bit of that.
• 12:55
  SPEAKER_00: But uh generally, you know, it needs to be under a unified policy, though you get into different countries, and you know, so there needs to be uh some flexibility there as how the uh policies are applied there as well.
• 13:08
  SPEAKER_00: So you know another differentiator when you start going international.
• 13:13
  SPEAKER_01: That's a really interesting challenge in and of itself.
• 13:16
  SPEAKER_01: Your average consumer, I mean, it's a low percentage of consumers that exist across international borders, right?
• 13:22
  SPEAKER_01: And for those that do, it's probably even lower percentage for those that are uh are struggling financially.
• 13:29
  SPEAKER_01: How does that start to look as an organization?
• 13:32
  SPEAKER_01: If I'm a small business selling pens and I've been selling pens on a global scale and now I got to collect on a global scale, do they tend to look for or build internal departments?
• 13:43
  SPEAKER_01: Do they start looking for that international partner that can help them across the globe?
• 13:48
  SPEAKER_01: You know, how does an organization even address that type of a problem?
• 13:53
  SPEAKER_00: Yeah, that that that's been a challenge.
• 13:55
  SPEAKER_00: And so you have XM Bank and the small businesses administration help helping companies get into export markets.
• 14:03
  SPEAKER_00: That's part of their mandate.
• 14:06
  SPEAKER_00: You know, and but yeah, it requires extra expertise.
• 14:09
  SPEAKER_00: And very often the the credit manager, it's only been domestic, doesn't have that international expertise.
• 14:14
  SPEAKER_00: And uh so there's definite training that needs to go on there.
• 14:17
  SPEAKER_00: And there's some organizations that provide that.
• 14:20
  SPEAKER_00: But uh yeah, it could be a challenge because you start getting to uh documentary credits and all sorts of different uh, you know, credit and collection devices that you need to use on the international scale that you don't necessarily use domestically.
• 14:34
  SPEAKER_00: So uh yeah, that's a another whole world that we could get into.
• 14:38
  SPEAKER_01: Well, language barriers.
• 14:39
  SPEAKER_01: And if I'm operating in six countries and I need a collector in each one of those countries, now I mean I know it sounds minor, but dealing with the cultural and language barriers that would exist even within my own department, I think would be something worth concentrating on from a challenge perspective.
• 14:57
  SPEAKER_00: Yeah, absolutely.
• 14:58
  SPEAKER_00: Now, the software that's most people are using, and if you're getting into international, you know, I would hope that you're automated.
• 15:05
  SPEAKER_00: Most of that is bilingual multi-currency.
• 15:08
  SPEAKER_00: So uh that takes care of some of it.
• 15:11
  SPEAKER_00: So you can and nowadays with AI it's a lot more helpful.
• 15:14
  SPEAKER_00: But yes, in terms of talking person to person, either you're gonna need an agent in country to help you out with that or have bilingual collectors.
• 15:22
  SPEAKER_01: Yeah, and the more and the more countries you got, the more difficult it gets.
• 15:26
  SPEAKER_00: If you're talking to Europe, they most of them speak English.
• 15:29
  SPEAKER_00: But uh yeah, but other other places in the world, yeah.
• 15:32
  SPEAKER_00: So, you know, the Latin America, obviously, you know, you need Spanish speakers or Portuguese.
• 15:37
  SPEAKER_01: Very interesting.
• 15:38
  SPEAKER_01: It's uh it's just a a different kind of challenge than we're used to facing, because I don't have the same consumer in six countries, right?
• 15:45
  SPEAKER_01: But you're dealing with consumers across those six countries, unless I'm one of the top three you know largest debt buyers in the world, I'm probably not buying cross-border.
• 15:54
  SPEAKER_01: So it's uh interesting challenges.
• 15:56
  SPEAKER_01: You know, from a commercial perspective, do you find with those higher balance ranges that you start litigating faster or you know, do you guys have a rule of thumb litigation threshold in terms of average balance?
• 16:10
  SPEAKER_01: I know it's different than the consumer side.
• 16:12
  SPEAKER_00: Yeah, uh, most most companies we recommend that they actually don't go right to litigation.
• 16:18
  SPEAKER_00: They're gonna go to an agency first.
• 16:20
  SPEAKER_00: So they're gonna work the receivables in-house, uh, hopefully less than 90 days.
• 16:26
  SPEAKER_00: But once it gets up to that 120 to 180 day band past two, that's when things should be going over to an agency.
• 16:34
  SPEAKER_00: And that should be part of their whole collection philosophy and policy to have that agency embedded there.
• 16:41
  SPEAKER_00: And ideally you're working with two or three different agencies, depending on the different industries that you're in, that have expertise in those agencies.
• 16:50
  SPEAKER_00: And uh, you know, they'll they'll understand how to work your accounts, but yeah, if they think they can handle it, great.
• 16:58
  SPEAKER_00: They're gonna handle it, they're gonna get the collections.
• 17:01
  SPEAKER_00: But you need to move that along to the the the attorney network, you know, as soon as possible with that.
• 17:07
  SPEAKER_00: And so you work with the collection agency on that.
• 17:10
  SPEAKER_00: You know, and and most of the claims are larger.
• 17:12
  SPEAKER_00: So, you know, if it's something that uh fits in small claims court or maybe it's just a little bit uh above the say a 10,000 threshold, so you have eleven thousand owing, it's it's probably more worthwhile to put it in small claims court than probably do it in a district court.
• 17:29
  SPEAKER_00: So, you know, you have those types of things that you're playing with, trying to maximize return.
• 17:35
  SPEAKER_01: Yeah, and and what makes sense from a litigation standpoint, because your court costs and things are gonna remain the same.
• 17:40
  SPEAKER_01: And I think that's you know the cost structure that we have to uh kind of think our way through as we talk about litigation.
• 17:47
  SPEAKER_00: Yeah, and that's something you work out with the agency too, because you want an agency that's gonna be able to collect a high degree in-house, not be passing them quickly on to the attorneys, because that just raises the cost for everybody.
• 18:01
  SPEAKER_01: Aaron Powell Yeah, that that's pretty much the uh the cost of it, right?
• 18:04
  SPEAKER_01: And and ultimately that ends up getting charged back.
• 18:06
  SPEAKER_01: But once you've gone through litigation, you've got a judgment you're still trying to collect specifically from that corporation, unless there's some sort of personal guarantee associated to that account, which I'm assuming would make it more consumer and not fall through this world as much, right?
• 18:21
  SPEAKER_01: There's there's probably a a separation there.
• 18:23
  SPEAKER_01: Do you treat personally guaranteed accounts differently?
• 18:26
  SPEAKER_00: Well, with the personal guarantee, you know, that that can be fun too from a corporate setup.
• 18:31
  SPEAKER_00: So you have a customer in a joint tenant state and you get a guarantee from the owner of the business, he his assets are all held jointly with his wife.
• 18:40
  SPEAKER_00: You know, you can't go after it.
• 18:42
  SPEAKER_00: Uh so you know, there's there's things that need to be considered with a personal guarantee on a business that maybe you wouldn't consider on a consumer because you're going direct to the consumer.
• 18:52
  SPEAKER_00: Uh you know, so yeah, they they help.
• 18:56
  SPEAKER_00: Uh that that's a tool you that you use as a leverage.
• 18:59
  SPEAKER_00: And that's you know, one of the things that you want to do from the whole opening of the credit file is you want to have it well documented in terms of signed applications, signed credit agreement, and all that documentation that goes along with it.
• 19:13
  SPEAKER_00: And then any personal guarantees, any UCC security filings that you're gonna do, all of that needs to be done as appropriate.
• 19:21
  SPEAKER_00: So that's all part of the mixture in construction.
• 19:24
  SPEAKER_00: You have bonds and liens, and so you need to be timely in the filing of all those things.
• 19:29
  SPEAKER_00: So that's all part of this whole collection process of making sure you're dotting the I's and crossing the T's the whole way through it.
• 19:36
  SPEAKER_00: So if you do have to place it with an agency, that they're gonna have something to work with.
• 19:40
  SPEAKER_01: Well, I would think similar to the way that we look at our origination documentation, the you know, how are we originating a credit card account and auto loan, that businesses are also looking at their collections operations and trying to figure out how to fix their underwriting or their, you know, pre-collection processes to avoid that.
• 19:58
  SPEAKER_01: Is that a a big feedback loop within a lot of the organizations?
• 20:03
  SPEAKER_00: Yeah, that should it should be, you know, certainly in the larger organizations.
• 20:07
  SPEAKER_00: You know, we find the small and medium-sized businesses, you know, not so much.
• 20:12
  SPEAKER_00: Uh that can be a problem there.
• 20:13
  SPEAKER_00: And uh that's something that they a lot of them need to work on because you know, the company grows all of a sudden, you know, the bookkeeper's been handling collections.
• 20:23
  SPEAKER_00: Now you got maybe the controller starts taking over them.
• 20:26
  SPEAKER_00: You bring a controller in, then that gets too much for the controller, and you start giving it to an AR clerk, and you know, you don't necessarily, you know, at some point need to bring in the professional experience there.
• 20:38
  SPEAKER_00: So that's uh always a challenge for them.
• 20:41
  SPEAKER_01: Building the process itself around it, right?
• 20:43
  SPEAKER_01: It's it when you're growing an organization and the role keeps changing unless you're documenting it and perfecting that process.
• 20:50
  SPEAKER_01: But I think a lot of organizations they start going so far down the path, they they end up with these collection problems, but without thinking about how they can fix those collection problems at the beginning of the relationship to stop it from sliding to where it is today.
• 21:04
  SPEAKER_01: And you know, as a small business owner, it's something I'm always looking at.
• 21:08
  SPEAKER_01: If I got something that's rolling into collections, why?
• 21:10
  SPEAKER_01: What should I have done differently?
• 21:11
  SPEAKER_01: What could how could I have communicated better?
• 21:13
  SPEAKER_01: I feel like there's a couple of mechanisms that we can use to improve that vendor-supplier relationship and uh and really kind of improve ourselves as we go through that process.
• 21:24
  SPEAKER_01: Yeah, no, that that's absolutely right.
• 21:26
  SPEAKER_01: Well, let me ask you this what advice would you give to a consumer collector who's eyeing the commercial space for potential diversification?
• 21:38
  SPEAKER_01: One, I would tell them to go read your newsletter and keep their finger on the pulse, but like let's start with that.
• 21:42
  SPEAKER_01: What what other advice would you have for them, you know, as they're starting to eyeball the opportunities that exist in the collections space of the coach?
• 21:50
  SPEAKER_00: Yeah.
• 21:50
  SPEAKER_00: So it's if if you're gonna, you know, move into commercial or business collections, you you need to bring in people that have that experience.
• 21:59
  SPEAKER_00: You know, it's it's gonna be difficult for someone that's wholly uh been trained and gone through the process and developed on the consumer side to just step in and realize everything that needs to be done on the commercial side.
• 22:14
  SPEAKER_00: It's a it's it is a different world.
• 22:16
  SPEAKER_00: Uh, I'd have the same problem if I went over to consumer.
• 22:19
  SPEAKER_01: Fair enough.
• 22:20
  SPEAKER_01: It's it sounds like bringing a guide on the tour.
• 22:23
  SPEAKER_00: Yeah.
• 22:23
  SPEAKER_00: And it's a and as I mentioned, it's it's much more a relationship because these are ongoing situations.
• 22:30
  SPEAKER_00: You know, whether even it's a bank load, you want to not only have that customer with a bank load, you want to sell them other products as well.
• 22:37
  SPEAKER_00: So you want to build that relationship.
• 22:39
  SPEAKER_00: Banks make money when customers are buying three or more of their different products.
• 22:45
  SPEAKER_00: And on commercial, you know, you want that you want to be supplying that uh that that customer for years.
• 22:51
  SPEAKER_00: And uh because that's uh that's where you're gonna really make your profits and your money.
• 22:56
  SPEAKER_01: Well, I think that's some really great advice, David.
• 22:58
  SPEAKER_01: And I'm going to include a link to your newsletter below just so that those of that are are watching today can get a chance to continue to learn some more about the commercial space.
• 23:09
  SPEAKER_01: But I really do appreciate you coming on and sharing your insights today.
• 23:12
  SPEAKER_01: I learn a lot from every conversation you and I have had, so I really do appreciate it.
• 23:17
  SPEAKER_00: Well, thank you for having me.
• 23:19
  SPEAKER_01: It's been it's been a lot of fun.
• 23:21
  SPEAKER_01: Absolutely.
• 23:21
  SPEAKER_01: For those of you that are watching, if you have additional questions you'd like to ask David or myself, you can leave those on LinkedIn and YouTube and we'll be responding to those.
• 23:28
  SPEAKER_01: Or if you have additional topics you'd like to see us discuss, questions you want me to be asking about the commercial space, you can leave those in the comments below as well.
• 23:36
  SPEAKER_01: And hopefully I can get David back at least one more time to help me continue to create great content for a great industry.
• 23:42
  SPEAKER_01: But until next time, David, thank you so much.
• 23:44
  SPEAKER_01: I appreciate all your insights.
• 23:46
  SPEAKER_01: Thank you.
• 23:47
  SPEAKER_01: And thank you everybody for watching.
• 23:49
  SPEAKER_01: We appreciate your time and attention.
• 23:50
  SPEAKER_01: We'll see you all again soon.
• 23:51
  SPEAKER_01: Bye, everyone.