Signs You Need to Hire A Commercial Collection Agency
In our last blog post, we reviewed the pros and cons of hiring a commercial collection agency for your business. But how do you know when is the best time to hire a commercial collection agency? Should you wait a month after the first collection letter is sent to the customer? This article provides a variety of examples of when it’s best to hire a commercial collection agency.
- A customer’s account reaches 90–120 days past due.
Some people place accounts with commercial collection agencies at 60 days past due, others wait longer. It depends how you run your business and the bill amount your customer is refusing to pay. If you’re willing to let an account sit on your books and grow older without actively pursuing it, it’s better to give it to a commercial collection agency to handle (Entrepeneur.com).
- A customer won’t respond to your collection letters.
There are some customers who need a few calls, letters, or phone calls to get them to pay their bill. Some business owners think they need to manage this aspect of the business, but the reality is that they should let commercial collection agencies take the reins and utilize their skills to get you paid. There are actually some people in the world who maintain constant refusal to pay their bills because they think they can get away with it. Don’t let your business be just another notch on their belt. (Medium.com)
- A customer’s payment term fails.
Some customers choose when or if they want to pay, which make up for 25–50% of the cost of collections (Entrepreneur.com). A collection agency could save you time and a potential loss of money.
- A customer denies responsibility.
This is considered a total loss by many businesses. If you have the customer’s proof of order or a contract receipt, hiring a commercial collection agency will considerably improve your chances of getting payment from the customer.
- A customer gets a divorce and places the other as responsible.
Even with the most uncommon of circumstance, collection agencies are professional debt collectors and well skilled to deal with the situations. Get a copy of the divorce decree, which will state who is responsible for the payment.
- A customer makes repetitive and unfounded complaints to try to get out of payments.
Do you want to spend time trying to fight them for reimbursement of your services? A commercial collection agency has the resources and education to take on a customer’s complaints and get you the payment you deserve. (Entrepeneur.com)