It’s not always easy for a business to know the right time to send an account to collections. But certain patterns can serve as indications that a past-due account likely will be not be resolved without outside help, and that can make it easier to decide when enough is enough. Here are three signs an account should be turned over to collections.
A Change in Communication
Whether it’s sudden or gradual, changes to communication or responsiveness from a customer or client is a common warning sign. While there could be a valid reason behind this communication change, and it may be worth trying to determine whether that’s the case, it could also signal that person’s disinterest in paying what’s owed.
A Steady Stream of Excuses
If you are able to reach a customer with a past-due account, pay attention to their explanations for the delay. A steady stream of vague excuses relating to system delays or ongoing issues with the mail can mask the real issue — that this customer or client doesn’t intend to pay.
If a customer or client is promising to pay when X, Y or Z happens, consider it a sign of cash flow problems. In that case, you probably aren’t the only one waiting to be paid. And that’s not a good sign.
A Professional Partnership
Even the most organized business can end up dealing with overdue accounts, which is when an established partnership with an experienced debt collection agency can be particularly helpful. In Reno and Sparks, Business Professional Collection Services, Inc., has been helping businesses across all industries improve their cash flow since 1961. Our collection approach is focused on two outcomes—making it possible for our consumers to resolve their debt professionally and our customers to enjoy the best possible returns. With a commitment to compliance, decades of experience, and state-of-the-art technology, BP Collect is a good choice for any business noticing the warning signs we’ve outlined here. Contact us today to learn more.