FAQ for Business2021-05-18T12:31:26+00:00


KLS Financial maintains a non-interest bearing trust account where we deposit any payments made directly to our office. This account is periodically audited and bonded. It is from this account that we cut payments to our clients on the fifth and the twentieth of every month. See remittance options for more detail.


Often when collecting your accounts a debtor will turn around and call our client. Usually, this will occur after the first time we contact them and notify them of the debt owed. Since we make immediate contact as soon as you place the account, you may receive one of these calls the first day you place.

In order to strengthen our bargaining power and increase your pay back, we ask that you refer the debtor back to us. Make your customer aware that the collection of the account is no longer in your hands, and that they will need to work directly with KLS Financial.

If we are under instructions to delicately handle this account, you may wish to tell the debtor that you now have some auditors looking into that account and it would be better if they spoke directly with them. However, no one knows your customer better than you do. If you feel accommodating an irate or frustrated client in your own manner is more productive, please let us know the outcome of your conversations. Our team effort in opening the lines of communication and ultimately getting payment in full is the main goal.


KLS Financial immediately contacts your debtor to demand payment and evaluate how collectible the account is. This is a service we do on all accounts regardless of age, balance, or location at no higher rate. If you are not currently receiving this service, then you may not be getting a return on your accounts as quickly as possible.

Upon placing an account, a report is generated to you acknowledging your account and the balance placed. The account is then assigned immediately to a qualified professional commercial collector who is instructed to call on all new accounts within minutes of being placed.

After 90 days with no collection and none pending, you can place a hold, or withdraw for cause.

Because we immediately attempt contact on every claim it is not unheard of for a debtor to walk-in and pay an account the same day it is placed. Obviously since we work on contingency, we cannot allow clients to indiscriminately retract claims. We allow for case-by-case examinations as to why an account needs to be placed on hold, or withdrawn.

Once an account has been through every step of the collection process and it is determined to be unrecoverable, we will inform you of your company’s options and our personal recommendation.

Your choices may seem obvious on complicated accounts; settlement, litigation or cancellation. However, Kross, Lieberman & Stone continues to service you by keeping you informed even on accounts that may not be collected in full.


Anytime your debtor offers a solution other than payment in full, a representative will contact you for authorization to accept that offer or to intelligently discuss a counter offer. KLS Financial will offer our recommendation on whether to accept settlement, returns, etc. based on our conversations with your customer. KLS Financial always works towards your best interest. Sometimes in working an account, we may be offered the same settlement your company was offered. In these cases we will review the reasons you didn’t take the first offer or if, as in many cases, the debtor did not fulfill his original settlement agreement, we will discuss our methods of procuring the settlement timely.

If you have a standard settlement percentage that you are willing to work with, this can be noted on your file and all collectors will know on the first call any potential negotiating range they have. This is often used in cases where clients have accrued service charges, interest, or collection charges on an account.


As you probably know by your personal experiences with pursuing an account through litigation, this can be a complicated and tedious business decision. Based on information we gather in the course of our investigation of your account, we have made the decision a little more scientific. Although we can’t guarantee all accounts that we recommend for suit will pay-off, we have had a high ratio of accounts collected.

Important too is the timelines in suing a debtor who could potentially file bankruptcy. Thus, we have trained our collectors to be excellent listeners as well as negotiators. If a collector listens to the debtors’ specific problems as to why they are not paying and feels like the account will not pay without being served with a judgment or is inclined to file for reorganization, we let you know immediately. Timely filing can save you bucks.

Other factors involved when we recommend suit is the balance of the account. Attorneys will not accept many small balance accounts. If they do accept the account, they usually take a third. In this scenario, you would have to weigh the benefits of strengthening your reputation as a creditor who accepts no-excuses with the cost of litigation.

Although we are not attorneys, we are affiliates of the Columbia Law List, The National List, and The Clearinghouse Quarterly, as well as individual members of The Commercial Law League of America. These associations provide us with a network of attorneys that can transcend any boundaries.

In any case, large accounts, small accounts, old or new, KLS Financial is able to take the burden of litigation off your shoulders. (Please see our section on Litigation for specifics) As a full-service agency, we are able to service your account from placement to payment even if suit is necessary.

Return on litigation is excellent when the debtor is not judgment proof.

Preliminary investigations on Litigation accounts can usually assist us, the attorney, and you the client to determine the likelihood of a positive outcome. Often the goal is to get a judgment filed with the clerk of courts. This will remain on the judgment debtors’ record and is public information for the next ten years. The ultimate goal is of course to get PAID! Our experience is that when an individual or business is financially sound a judgment is very easy to liquidate. If a business is sued and the service or product is personally guaranteed, the chances of recovery increase significantly. As corporations and partnerships fold, securing your debt with personal guarantees allows the court to not only attempt to collect against business assets but to also utilize personal assets to liquidate the balance.


KLS Financial would like to be effective in collecting all our clients’ money. Unfortunately, some accounts are unrecoverable. Skipped, out-of-business, bankruptcies, and foreclosures all involve a recommendation from this firm to cancel and write-off your balance. You may request a monthly cancellation report. This report includes the accounts that have been canceled for a specific time period and the reason for cancellation. In the event of an audit of your company’s books, IRS officials often want proof of the diligent pursuit of accounts written-off. This report provides the proof necessary. Many clients also request a letter of cancellation. This letter addresses each account placed individually along with the reason for cancellation. Please let your account executive know which cancellation process you prefer.


Once you complete and email registration page including company name, mailing address, and email address a client id and password will be forwarded to you by email. Of course there will be no information to look at if you do not have an account placed with us. Your placements account number will be on the acknowledgment report also emailed or mailed to you. Because of confidentiality agreements, we are not allowed to give every client full access to every account in our system.