Unpaid invoices are pretty common for animal breeders and semen distributors. Sometimes, repeated follow-ups with your customer do not help, and your past-due accounts receivable start to dig into your profits.
Breeders are forced to assign past-due accounts to a debt collection agency. The involvement of a third-party agency does the trick. The moment your customers realize that the recovery is now handled by a professional collection agency, the entire tone changes.
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Bad Debts: This is especially concerning for distributors and breeders as the product they are dealing with is perishable and has maintenance costs (e.g. storage of frozen semen).
High Costs of Preservation: The preservation of animal semen requires proper storage conditions which can be costly. If the payments from the customers are delayed or not received, it can be hard to maintain these conditions, affecting the quality of the product.
Seasonality of Demand: The demand for animal semen might be seasonal, especially when breeding livestock. This seasonality can make it difficult to predict cash flow and can exacerbate AR issues if the company doesn’t plan for the slow periods.
Collection agencies are experts, they know every law and resource required to recover unpaid bills. They know how to collect money in an amicable and diplomatic manner while attempting to preserve business relationships.
It is crucial to select an agency with experience recovering specifically for breeders. It does not matter what specific animal you deal with (pig, bull, horse, swine genetics, cattle, etc.). Rather than writing off unpaid invoices as bad debt, it is highly recommended to hire a collection agency.
Most agencies will work on contingency-based fees only.
Collectors love working for Semen Distributors, Breeders, and the Egg industry because of the high recovery rates they achieve as compared to other businesses.