“When it is about recovering the accounts receivables, how do you know it is time to reach out to a collection agency? To know, please read on.”
So, have you sent your statements to your customers a lot of times? Are they responding to you? If not, then it is high time you consider reaching out to a collection agency. However, when it comes to the debt collection of your company, most entrepreneurs do not really understand the ideal time to call the agency or a professional. Trust me, letting your accounts rot without any kind of response from the debtors’ end is no good for your business. It will just hamper your profits and also decrease the liquidity of your business.
No, there is no need to get frustrated as you can simply bid goodbye to your worries and let a reliable and good collection service agency take care of your accounts.
However, if you are wondering about the red signals, then please keep reading this blog.
- Let me get this straight for you all in the very beginning – there is no hard and fast rule when it comes to this. No one can specify a time period when it is about hiring a collection agency. It depends on certain factors such as the customer and his/her trend of paying you, the industry where you are working, etc. If you think that it’s time to call a collection service agency, then it shouldn’t be delayed.
- Again if the amount is meager or little, then you need to consider the cost that you need to pay the agency. But if it a good amount, then please don’t let it stay like that and take immediate action. Fast attention would ensure that you get it back and when it comes to paying the agency, you do not really need to worry as the payments are generally accepted on a contingency basis.
- Since there are no rules or guidance, some people even wait till the last minute. However, in most of the cases, if a payer does not respond in three months, then there is hardly any chance of him or her getting back to you without professional approach. If you own a business, then you must already be aware of the law of diminishing returns. The older an account gets, the harder it is to recover the amount. So, why take any risks? If you even once feel that it’s enough of those continuous calls and emails, then trust me, it is enough and do not need second thoughts!
- Now I would like to pay some focus on the debtors who go missing. Yes, there are many of them who do not leave any trace and simply move or relocate their address/ business. In these cases, you should call a business collection agency at the earliest.
- If you own a medium or large scale organization, then it is recommended that you keep a track of the number of calls, invoices, or mails you are sending the failed payers to. Understand at what point do the plan needs further action or protocol that would need the attention of a business collection agency.
So, these are things you need to keep in mind in order to understand when enough is enough! And yes, when you hire a collection agency, fix a prior appointment with the collector. See if he or she possesses the necessary traits and is certified or not. If not, then do not hire him or her. Ask necessary questions about how you would be informed about the updates, etc and hire only if you are fully satisfied.
To know more about debt collection or business debt agencies, kindly wait for my next blog. I would love to enlighten you about the same.