For a business, making the decision to hire a collection agency can be difficult. But when you’re dealing with a customer who flat-out refuses to pay or one you simply can’t pin down, the most efficient way to collect that outstanding debt often involves bringing in a professional. And that begs the question — when should a business hire a collection agency? Business and Professional Collection Service shares these tips to help you decide.
An Account is One to Three Months Past Due
Every office is different, but a general rule of thumb is to submit collections on past-due accounts between one and three months of delinquency. That’s because your chances of recovery are directly linked to how soon you partner with an agency. Still, timing will depend on how a particular business is run and how much debt is outstanding. If you find yourself in this scenario, it’s a good time to consult a professional.
You’re Getting Nowhere with a Customer
If you’ve sent multiple invoices and you’re debating following-up with phone calls or letters, it’s often a sign to contact a collection agency. Keep in mind, contacting customers in a professional, ethical manner while still ensuring results is what a collection agency does, so let them apply that expertise to your benefit. With tools like skip tracing, an agency has the resources to locate customers who have moved.
Bringing in an agency is also a logical next step if you’ve attempted to work with a customer who fails to meet the payment terms or refuses responsibility altogether.
Regardless of why your customer isn’t paying for services rendered, turning unpaid debt over to collections increases your chances of collecting outstanding debt while also freeing you up to focus on your business.
What’s the Difference?
A letter from a professional collection agency like BPCS is a very clear sign that your business intends to collect on money owed. In fact, correspondence from our agency is very often motivation enough for customers to pay. And in the event that it isn’t, we have the tools, experience, and training to maximize your return without alienating your customers.
Learn more about what you can expect with a professional collection agency working on your behalf. Contact us today.