Asset recovery is a delicate process leveraging skillful, experienced talent and the right tools to help avoid costly mistakes like being accused of wrongful repossessions. As industry leaders, ACS believes we have a responsibility to aid our clients and the industry at large with market-tested insights to help lenders and lease finance companies navigate repossessions in the construction industry with poise and professionalism so they know they’ll get the results they need efficiently and in complete compliance with applicable regs.
Let’s explore the best practices and strategies to make the asset repossession process fast and efficient.
1. Communicate Clearly to Non-Performing Accounts
Repossessions should never come as a surprise, and the best way to avoid this is thorough, clear, and consistent communication as soon as an account begins to exhibit poor performance. Leading up to asset recovery, consider contacting the account through several means and with updates such as:
- Immediate contact via phone and email so the client is aware of their delinquency
- Reminder of terms and options to avoid further escalation
- In-person visit to verify assets and identify asset status
Communicating proactively with well-documented records helps protect the lender throughout the repossession process.
2. Maintain Contractual Compliance
Lenders must remain completely in line with their contractual obligations to avoid costly legal woes. Before taking any action as drastic as a repossession repossession, it’s wise to consider the following steps:
- Review all terms of the contract in-depth with your internal team
- Identify specific terms in the contract that have been breached
- Outline the local legal framework for repossession
You can avoid legal entanglements by ensuring your house is in order before the repossession process begins.
3. Offer Alternate Routes to Recovery
As you might expect, repossessions most often occur due to financial strain. Making alternate payment arrangements can benefit both sides. Consider offering the following terms:
- Late-stage loan resolution services
- Restructure debt and payment plan
At ACS, we offer several customizable solutions to help get accounts back on track. We view physical asset recovery as a last resort after other options fail.
4. Leverage Technology to Track Recovery Progress
When recovery becomes the only practical option, choose professionals with the skill and technology necessary so you can rest easy about the assets’ status. In addition to tracking technology, for example, ACS employs the following practices and technologies.
- Skip tracing to verify asset location, condition, and transportation progress
- Real-time access to status updates through the recovery process
- App-3 technology empowering clients with easy access to information
At ACS, we continually learn more each year about our industry’s best practices and the tools that enable safe and efficient asset recovery.
At every stage of the asset recovery process, you need an elite team of highly trained specialists to protect your brand and bottom line. Moreover, you need people who know how to handle potentially volatile situations ethically and professionally.
With more than 25 years of experience in the construction industry, we’ve seen it all. Our approach puts people first, and we thrive in overcoming complex challenges and unique cases that call for creative solutions.
When recovery is the only practical solution, skillful professionalism, technology, and strict observance of all relevant regulations present the best path to success. ACS is proud to partner with many industry leaders on that journey.