Start-up offers alternative to costly traditional collections practices
Miami, Fla., June 14, 2018 — Axela Technologies–a Miami-based start-up that is a unique hybrid of collections agency, technology company and specialty finance firm–offers a proven and effective solution to community associations (Condos, HOAs and Co-Ops) and management companies currently faced with the daunting task of collecting on late and non-payment of fees from property owners.
According to recent media reports, the Miami-Dade County area in Florida is currently experiencing a four-year oversupply of $1 million-plus condominiums. This over-supply of high-end residences has led to an increase in non-payment of association dues and fees, a constant issue for many home owner associations and property management companies.
Historical data shows there is a clear inverse relationship between real estate values and delinquency rates (property values go down, delinquency rates increase). Property owners who find themselves in the unfortunate position of owning a property that is worth less than they paid for it are more likely to default on their community association dues and/or maintenance fees.
Axela’s “big data” offering
Axela Technologies brings to market online tools and solutions that allow community associations to automate and streamline certain accounts receivable collection practices. Pulling from various data sources, the platform relies on proprietary algorithms to underwrite the risk associated with delinquent accounts and predict future defaults and trends. Setting itself apart from traditional attorneys or collection firms, Axela will advance past-due amounts to qualifying associations based on the perceived risk profile of their receivables. This allows the association to defer the costs and to monetize doubtful or even perceived uncollectable debts that are stuck in their accounts receivable ledgers, with the benefit of not having to take out a loan.
“Axela’s innovative and comprehensive receivables management protocol has already attracted partnerships with some of the largest firms in the community association and property management industry,” said Martin Urruela, Axela Technologies Founder and CEO.
The company partners with property management firms and allows them to offer Axela’s products to their client base. It is a no cost solution to community associations and their management companies, and serves as a buffer between community managers and problematic homeowners, which can often lead to awkward, uncomfortable, and even hostile confrontations.
Communicating is key
Axela Technologies is an authorized data contributor to Equifax, meaning associations have the option to report both positive and negative payment information to the credit bureaus.
“Opting-in to our credit reporting service is an extremely effective way to incentivize timely payments” said Urruela. “It forces owners to prioritize maintenance payments the same way they would a car loan or credit card payment”.
Axela also establishes back-end integrations with numerous accounting software providers, which enables seamless data exchange with its customers. Axela’s web portal allows customers to not only track ongoing collections efforts, but also to customize any correspondence and action plans that affect their owner base.
Deja vu all over again
Florida is not the only state to experience the non-payment phenomenon. Markets in Massachusetts, Washington, Texas, California and New York are experiencing similar issues.
According to the latest Case-Schiller Index, demand remains strong, supply is short and economic conditions are making it possible for many people to bid prices up. While the housing market has confounded experts, what is not in question is that the index has now surpassed by 6.3% the peak of Housing Bubble 1 in July 2006.
“Property managers and community associations are seeing many of the signs they saw a decade ago,” said Urruela. “So, they are looking for ways to be proactive and to mitigate the potential costs and risks associated with bad debts before they become an issue. Axela provides these solutions.”
With an eye on expanding nationally, Axela Technologies recently received an infusion of $1.5 million in seed funding from investors to accelerate expansion of its service and product offerings nationwide.
To learn more or for a demo, click here: http://bit.ly/2Mm7OcC
About Axela Technologies
Axela Technologies provides automated solutions to help community associations manage and address their delinquent account receivables. Axela’s existing suite of products include several collections and specialty financing options designed to maximize the efficiency and effectiveness of the recovery process. Axela’s technology platform seamlessly moves collections through helpful & friendly engagement with delinquent owners that is entirely compliant with the FDCA, TCPA and FCRA.
Learn more about Axela at https://axela-tech.com.
