. We are setting up a payment plan with them. The payment is going to be mailed out tomorrow. If you are a business owner you have heard it all. Lots of empty promises from customers but no payment. Nothing is more frustrating for a business. You provided the services and or products they ordered and now they wont pay. Should you hire a collection agency? Is it too late to collect? Knowing when to turn your delinquent accounts over to a third party agency is an important decision for businesses to make. When the account is actually sent over to an agency will affect the businesses recovery rate.
Many businesses will wait until a bill has been delinquent for 6 months to several years before sending to a collection agency. A lot of the times they have had long business relationships with the customers and do not want to damage that relationship. If you hire a collection agency that has your customer relationship and reputation in mind they will request payment in a way that will not be detrimental to your future customer relationships.
Your company provided services or a product to a customer, you sent an invoice to the customer and now the customer is not paying. You sent out another statement showing the balance is still owed, made several telephone calls reminding them of the bill and sent out several emails. After all of that work you received no response from the customer. You have exhausted your time, resources and money to try and collect the account with no success. Additionally you have geared your focus and energy on past-due accounts instead of the growth of the business. Hiring a collection agency within the first 30 days of the account going delinquent will increase your chances of recovering the account.
The collection agency is staffed with dedicated representatives who are trained and skilled in the collection process. They have the necessary software and tools to successfully recover your funds. The agency will help to recover you funds while reducing your costs, saving time and reducing the number of accounts outstanding.
Statistically the longer an account remains past-due, the more difficult and less likely the account will be collected.In general you can subtract 10% off the recovery scale for each month that the account remains delinquent after the first four months. In order for a business to maximize their recovery rate, the business should send their accounts over to a collection agency after the first 60 to 90 days outstanding.
To maximize your recovery send your accounts over to a collection agency right away. Let the professionals deal with the debtors and recover your funds!