If you have been ignoring to collect money from past due accounts, it can seriously damage the cash flow needed for a smooth functioning of your business. Here are the vital signs that your accounts are already overdue to be assigned to a debt collection agency.
- You are losing money due to non-payment from your customers.
- More than one customer has failed to pay you.
- You have regularly started getting excuses from your customer, “I am in a meeting, let me call you back“, but the call never comes back.
- Customer has repeatedly started breaking promises to pay off their current balance on the agreed date.
- Your customers’ checks have bounced repeatedly.
- You and your staff are not familiar with collection laws and regulations, and unknowingly taking the risk of getting sued back.
- It has been 90 days since, and your internal collection efforts have failed. You are actually losing about 10% money each month as the probability of getting paid has started to decrease.
- Your debtor is untraceable. Neither picking calls and paper invoices are being returned back as “un-deliverable” or “incorrect address“.
- You do not have the staff who have enough knowledge to handle collection efforts, they are falling behind, or are not willing to handle customer disputes over payment anymore.
- You are spending too much time chasing non-paying customers, time which could have been better utilized expanding your business.
- You are having trouble paying your own creditors because of non-payment from your customers.
- You do not have the cash flow to hire new employees, forced to think about the cost cutting measures or lack of money to purchase a new equipment.
- If you have customers spread all across USA and finding hard to track them.
- You got a favorable judgement from the small claims court, yet you are not getting paid by the debtor.
- A customer has falsely started to pinpoint gaps in your service or how bad your product is, however you know clearly that is not true statement.
- Accounts have become too complicated and can only be handled by a 3rd party collection agency.
No one wants to be called by a debt collector, even if there is a legitimate reason for the call. Debt collection agencies have resources to locate people, find their assets, collect money and even take them to the court of required.