Is It Time to Move on to a Collection Agency?
By- Brinen LeFevre
If you are a business owner and ever have to ask yourself the question above, then you have needed our service at one point in time. However, the importance of timing can not be any more crucial in placing delinquent accounts. Debt is not like fine wine, it does not become better with age. With a management team of over 100 years of combined experience, Kearns Brinen & Monaghan has a few tips to share to keep your bottom line secure and increase your cash flow.
You may get tired of sending out constant letters and making phone calls to the same client heckling them to pay the money that they owe you. That stubborn client will not budge an inch on his debt and before you know it, it is out of your hands. It is highly suggested that accounts be placed with collection offices somewhere between 60-90 days after they are passed term. If placed in that time period, accounts have an average collection rate of 70%. Each day you wait, the more money you are losing on the deal.
Without placing in this threshold, you are risking write offs in your business that you may not be able to afford at the time. You are risking the security of your bottom line and a decrease in cash flow. But worse yet, you are risking the integrity of your business. As men and women of business, it is absolutely imperative to maintain image and relations.