If you have no lien rights and no right to file a UCC filing and your terms are Net 30 (like most unsecured creditors), then a timely placement will be the next action needed to secure yourself. A timely placement of your commercial bad debt is incredibly important, as the age of the receivable will be tied to the probability of its collection. Most companies wait too long to outsource to their collection folks. While the staff’s intentions were good, the issue is the staff usually has no idea when to outsource to a 3rd part collection agency or when to put their foot down.

Your A/R is NOT like wine – it does not get better with age. In other words, do no hold onto your delinquent customers. It will cost you more in the long run! If your terms are Net 30, place between 60-90 days of delinquency. The probability of collecting will be much higher and also easier for the attorney to talk your debtor into paying collection costs.

THINGS TO REMEMBER:

* Customers buy from you

* Customers communicate with you

* Customers pay you

 

DID YOU KNOW?

Studies by the ACA (American Collectors Association) have shown that for every 30 days an account remains dormant, it is 16less likely to be collected.