When a balance goes unpaid, a business can usually send out past due invoices and make efforts to collect what is owed. However, these steps eventually hit a limit of what is available and what is reasonable. For professionals in the accounts receivable management industry, there is an unparalleled level of efficiency and tools available that are highly effective in yielding results.
As an overdue account ages its chances of being collected by a collection agency decreases. Ninety days is generally a good time to get a third party collection agency involved. This is when the account is most collectable and also when collection agencies charge the lowest fees. At this point your debt is still fresh in the debtor company’s mind and this expedites making you a priority. Aside from the psychological advantage a collection professional will have when contacting your debtor, the collector will have an array of industry techniques and technology plus have extensive knowledge of compliance issues. These are reasons why a collections professional will be successful with unresponsive debtor companies after you have exhausted your internal efforts. Continue reading “When to hire a collections agency”