Small businesses must partner with a collection agency to recover unpaid invoices swiftly—without draining internal resources or risking valuable customer relationships.
Our service is cost-effective, results-driven, and built on professionalism, helping you maintain goodwill while boosting your cash flow.
Unpaid invoices can significantly strain a business’s finances. Collecting money from accounts receivable can be very tricky, especially when you have shared a long-term business relationship with these clients.
Without a proper debt collection strategy, these accounts tend to become non-recoverable over time. Hiring a debt collection agency becomes mandatory when your in-house recovery efforts are exhausted. Always select a collection agency whose approach is achieving higher recovery rates while preserving your business reputation and customer relationship.
Here are the top 7 things small businesses want from a collection agency:
- High Success Rates and Excellent Online Reviews
- Low Cost and Transparent Fee Structure
- Professional and Ethical Practices
- Strong Client Support Team and Reporting
- Customized Solutions for Specific Needs
- Focus on Preserving Customer Relationships
- Ability to do Skip Tracing and Credit Bureau Reporting
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Past-due accounts can result in several financial issues, including:
- Negative cash flow for your small business.
- A severe cash crunch may restrict the ability of a small business to continue with its normal operations.
- Delay in providing salary to your employees.
- Even hamper your ability to make payments to your own suppliers.
- Frankly, everyone hates following up with customers regarding payments; again and again, it results in a growing frustration in your staff and wastage of their time and your money.
Does your Small Business have an Internal Accounts Receivable Strategy?
Without a clear collections policy, your business will continue losing money to unpaid invoices. Define actions for 15-, 30-, 60-day delays, and document each step.
Statistics prove that the longer you wait, the harder it becomes to recover your money.
1. First-Time Delay
Send a certified follow-up invoice and call the next day:
“John, maybe you didn’t get our invoice earlier, so we’ve resent it.”
Listen carefully—delays often stem from oversight or temporary issues. But if excuses sound false, flag the account and proceed cautiously.
2. Repeated Delays
Frequent delays suggest deeper trouble. Ask politely:
“John, payments were always timely before—what’s changed?”
Explain your own cash flow concerns to stress urgency without sounding pushy.
3. Evaluate Your Options
If late payments continue, consider switching to more reliable clients to reduce risk.
4. Identify True Reasons
Talk to multiple contacts at the client’s office. Keep notes on each interaction—changing stories are warning signs. Begin preparing to involve a collection agency.
5. Maintain Moral Pressure
Show faith:
“John, we’ve built great trust over the the last few weeks/months.”
Such goodwill can prompt quicker payment.
6. Stay Calm
Never threaten or argue. Be diplomatic and concise—angry calls rarely lead to recovery and can even backfire legally.
7. Offer Installments
If 4–6 weeks pass with no success, suggest a payment plan. If still unpaid, stop stressing—hand it over to professionals.
8. Engage a Collection Agency
If 60–90 days have passed, act fast. Collection agencies apply lawful pressure and usually work on contingency (30–40% of recovered funds). Delaying only reduces your odds of success.
9. Keep Documentation
Maintain copies of invoices, proof of delivery, reminders, and call logs. Share them with your collection agency.
10. Legal Action (if needed)
If recovery fails, your agency can advise whether to sue. Even if the relationship ends, a structured process maximizes your recovery chances.
| The cost of hiring a collection agency and information about their services is mentioned here. This includes Collection Letters, Collection Calls, Skip Tracing, Various Scrubs, Legal, Advanced Skip Tracing, Diplomatic Contacts, Credit Checking, Credit Bureau Reporting, and much more. Contact us for your small business debt collection agency needs. Do you need a Local or a Nationally licensed collection agency? Does your small business require Spanish Debt Collections or not? |
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