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.
The following are red flags that indicate it is time to hire a collection agency.
- The company phone is disconnected
- A bounced check
- A new client misses the first payment
- A customer is avoiding phone calls
- The debtor breaks a payment arrangement
- The invoice is over ninety days past due
Alexander, Miller & Associates is a premier commercial collections firm which offers contingency based debt recovery services and world class customer service.
Contact us for a free consultation.