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Debt Collection Help: When To Hire A Collection Agency GuideDebt collection help is often sought, and is a very wise business decision to recover your money. After you've provided professional services and/or sold products, your business can't afford the financial and physical drain of tracking down the people who owe you money.Nothing hampers your business's cash flow like mounting debt and unpaid bills. There will come a time when it dawns on you that the check isn't in the mail. With the troublesome economy we're experiencing, this could be happening with increasing frequency. Sure, you can continue to make phone calls and send even more statements, but not only are you NOT getting your money, these actions are now costing you more money in staffing, time and resources. Let's face it: you're in business to sell a product or provide a service. You're NOT a bank, nor are you in the business of chasing after money already owed to you. You further compound the problem by putting off hiring private debt collection services. Why? Because the older that delinquent account goes unpaid, the less likely you are to get paid at all. The statistics in the table below illustrate this:
Its not uncommon for many to wait until 9 months or longer before hiring a third party collection agency. But as you've just seen, you risk successfully recovering your money. This fear is due in part to the fees that many collection agencies charge; anywhere from 20-50%, contingent on monies recovered. There are agencies that forego percentages, charging a flat fee instead. They typically require money upfront. You have to make the right decision for your business. Depending on the age, account balances, and number of total accounts, may determine which is the better option for you. The point to be made here is that the sooner you turn past due accounts over, the more money can be recovered. As soon as you've exhausted your internal efforts, its time to seek outside debt collection help. DebtCollectionSteps.com recommends that you wait no longer than 60 days to do this. At 60 days, you're far more likely to recover some, or all, of your money. Also, if you've been consistent in sending timely statements at least every 30 days, and made followup calls during this period, you should have a pretty strong indication of who your "problem" customers are. The other ones should have at least gotten in contact to make payment arrangements, etc. DebtCollectionSteps.com has advised thousands of businesses all over the United States about their accounts receivable. Let us help assess your unique situation and provide you with business solutions and help with your debt collection problem. Fill out the brief form below for a free debt collection quote. Return to How To Collect A Debt from Debt Collection Help.
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