• Skip to main content
  • Skip to primary sidebar

Nexa Collections

  • Home
  • Serving
    • Medical
    • Dental
    • Small Business
    • Large Business
    • Commercial Collections
    • Government
    • Utilities
    • Fitness Clubs
    • Schools
    • Senior Care Facility
  • Contact Us
    • About us
    • Cost

When should you Assign an Account to a Collection Agency?

The best time to assign an account to a collection agency is when the debt is around 90 days past due.

Why 90 days?

  • You have given your debtor at least three billing cycles to pay the bill and resolve any billing disputes that may have occurred.
  • At 90 days, your efforts have been exhausted, and the account is clearly in the default territory. Your staff is spending more time and energy on reminding newer accounts that are around 30-60 days past due. 
  • Paying your bill is clearly not a priority in your debtor’s mind by now. ( or your patient’s mind, in case of medical debts). Chances of recovering money are dropping every day. A collection agency typically recovers 75% of your money when the account is assigned at 90 days.
  • Your internal staff is no match for a professional debt collector’s persistence and collection tactics. Your accounting department is unaware of collection laws that constantly change.
  • You can write off collection costs as business expenses in your taxes.
  • Quite likely your debtor likely has several other unpaid bills. A debt collector ensures that your bill becomes their top priority. You want to get paid before he wracks up more unpaid bills.
  • Assigning an account at 90 days to a collection agency will likely not alienate the debtor. He understands that you have given them enough time already. 
  • Your collection costs are lower:  You still have enough time to send Fixed-fee collection letters that cost a lot less than Contingency-based services. By spending about $15-$20 per account, you have an excellent chance to recover your money. Collection demands sent by a professional debt collector are a huge concern for your debtor versus when trying to collect by yourself. They will dig in all resources to get a collection agency off their back.

It is better to recover 75% of your money rather than take a 100% loss.

Need a cost-effective collection agency? Contact us

Filed Under: Debt Recovery

Primary Sidebar


accounts receivable

Need a Collection Agency?
Kindly fill this form.
We’ll get in touch with you

    Please prove you are human by selecting the house.

    Recent Posts

    • Why Cybersecurity Matters for Collection Agencies
    • 11 Ways Dental Practices Can Recover Unpaid Bills (Without the Headache)
    • Credit Bureau Reporting Forbidden on Several Types of Debts
    • Effective Tactics for Regaining Company Assets from Departed Staff
    • Low-Cost, Patient-Friendly Billing for Small Dental Practices
    • Changing Medical Credit Reporting Laws: Urgently Hire a Collection Agency!
    • Disadvantages of Removing Medical Debts from Credit Reports
    • Collection Agency Closure Checklist: Legal, Financial, & Operational Steps

    Featured Posts

    • How Data Analytics Can Help Your AR
    • CEREC Restorations: High Quality Teeth Restoration & Repair
    • Optimum Speed to Assign Debts to a Collection Agency
    Directory of collection agencies

    Note: Nexa is an information portal that helps businesses and medical practices to find a good collection agency at no cost to them. We are not a collection agency. We do not perform any collection activity, nor take payments, nor do any credit reporting. Leads shared with shortlisted agencies with Low Contingency Fee and High Recovery rates.

    Featured Agencies

    • Creditors Resource Service (CRS) – Debt Collection
    • Action Collection Agency of Boston (ACA)
    • Credit Collections Bureau (CCB) – Debt Collection

    Copyright © 2025 NEXACOLLECT.COM | All information on this website is for general information only and is not an experts advice. We do not own any responsibility for correctness or authenticity of the information, or any loss or injury resulting from it. Nexa is not a collection agency. Relevant inquiries are contacted by our shortlisted collection agency partner(s)

    X
    Need a Collection Agency?
    Contact Us