If your business is like most, the majority of its receivables sit in the 0 to 30 days column of an Accounts Aging report. It’s comforting to know most of those will be good. But have a look at the 31-60 days group. What’s up with them lately?
You might see a few more than usual in 61-90, and a growing number in the worrisome 90+. How did all those billings get so far along?
For entrepreneurs or AR Managers, it’s a frustrating and never-ending preoccupation.
When those accounts start to go south, it gets expensive. It can become hard to pay your own bills, which harms your brand reputation. It can even put your business in danger.
But you know all this. You understand that debt becomes statistically less and less recoverable with every passing day. (If unsure, find out what each overdue account is worth in real-time with this handy debt recovery calculator.)
Then what in the H-E-double-hockey-sticks is stopping you from collecting it more proactively?
I already know the answers. (There are two):
- You are afraid to harm the relationship and lose future business; and
- You don’t want to pay a collection agency commission needlessly.
Coincidentally, those are ALSO the top two reasons businesses write off bad debt year after year — because they’re used to justify costly procrastination.
Think about it.
If your job is Accounts Receivable, you are responsible for achieving the highest possible Net Back to your employer. After 60 or 90 days if you’ve done your best, the recoverable bills ought to be paid in full. For the problem ones, it’s time to leverage third-party psychology and escalate the account to collections. Don’t let delinquent debtors harm your professional credibility and create cash flow problems. Choose a collection agency focused on respect (Hint: there is only one) and the good clients will return. Any who don’t can go torment your competition.
And if you’re a business owner, you haven’t got time for monkey business that wastes time and inevitably leads to write-offs. You have obligations of your own and need to get back to earning tomorrow’s money while the professionals take care of yesterday’s news. Your trusted partners should work hard for your company while you work on it — that’s Business 101.
Choose a collection agency focused on respect and good customers will return —
with better payment habits.
The others can go make your competition miserable!
What is stopping YOU from collecting those overdue debts right now?
If you’re on the fence about sending an account to collections, be sure to download my 10 Debt Collection Pro Tips and you can get to work reducing bad debt immediately. When you’re ready to bring in the experts, dial 1-888-797-7727 or use this form and put Canada’s top-performing collection agency to work for you.