Resilience, Reinvention, and Receivables Management

Michael FlockIndustry Insights

DBA Magazine Spring 2015The spring 2015 issue of DBA Magazine is out with a brand new article from FLOCK Finance Founder, CEO, and Chairman Michael Flock titled Resilience, Reinvention, and Receivables Management.

Total delinquency rates are higher than the glory days when there was plenty of charged-off product to sustain or grow a debt buying business. So why do debt buyers feel like the industry is in a depression?

The growth in the delinquency rate is not the result of credit cards, which dominated the traditional debt buyer markets of the past, but the result of other loan types such as motor vehicle and student loans.

So debt buyers need to ask themselves if they have the resiliency to reinvent their companies to buy and collect debt portfolios in new markets.

In the article, Michael shares a story from nearly 25 years ago when he first entered the debt collections business.

Dun & Bradstreet (D&B) offered me an opportunity to turn around or sell off their unprofitable commercial collection business called RMS (Receivables Management Services). The company had only one product. Revenues were declining and losses were increasing. We had about a year to stop the bleeding and start growing or the company would be shut down or sold off.

To succeed, small incremental gains would not suffice. We had to reinvent ourselves. We had to come up with a compelling value proposition for large Fortune 500 companies…

Michael then elaborates on the lessons learned that apply to today’s debt buying and distressed asset environment, including:

  • Make adversity your friend
  • Reinvention through leadership
  • Leveraging capabilities provides resilience to persevere
  • Values must be aligned and consistent with strategy and tactics

To read Michael’s full article, pick up the Spring 2015 issue of DBA Magazine.

About FLOCK Specialty Finance:

FLOCK Specialty Finance is dedicated to alternative funding in a variety of specialty finance segments. FLOCK’s mission is to provide clients with capital and expertise for the purchase of both charged off debt portfolios as well as for the financing of subprime consumer obligations. FLOCK has funded over 600 portfolios since 2013.

FLOCK believes its funding is “More Than a Transaction”. FLOCK’s proprietary financing structure provides growth-minded clients with a competitive advantage in multiple asset classes. Founded in 2007, FLOCK is headquartered in Atlanta, GA. For additional information, please call: 770-644-0850 or contact us today.