We've given our professional advice about the best ways to collect delinquent accounts. But there are some debts that are better left to a commercial debt collection agency like ours. How can you tell when it's time to give us a call?
Look to a commercial debt collection agency for help when you see any of the following symptoms:
- The new customer does not respond to the first follow-up notices. The reason may be that he will not or cannot pay. Potential losses can be kept to a minimum with prompt referral to a collection agency.
- Payment terms fail for no valid reason. In these cases, irresponsible debtors pay when and if they decide to. This group is responsible for 25 percent to 50 percent of the cost of collections. Cost and potential losses are reduced by quick action.
- The debtor makes repetitious, unfounded complaints. Such debtors are better handled by those experienced in collection techniques.
- The debtor denies responsibility. Without immediate professional help, these can be written off as total losses.
- Delinquency coexists with serious marital difficulties. These also require professional collection help, with the added urgency of obtaining payment before the disappearance of one or both of the responsible parties.
- Repeated delinquencies occur along with frequent changes of address and/or jobs. It is from this group that 90 percent of all “skips” originate. A skip is a debtor who has moved without informing his creditors or leaving a forwarding address. The wise creditor seeks help from a professional collector when the location of this type of debtor is still known, before he becomes a skip.
- When obvious financial irresponsibility is found. In such cases, little hope exists for voluntary payments.
- The debtor is a skip. The farther away he gets and the longer the time since his last location was known, the harder it will be to find and collect from him.
- There is an unauthorized transfer or disposal of goods delivered in a conditional sales contract. Only prompt professional assistance can make any recovery.
- The delinquent debtor fails to keep in contact. Such a debtor is in one of the above groups. Using a professional collector is your best hope to obtain any payment on the debt.
If you have an account that falls under any of the above categories, fill out the form below to find out how we can help! Next week, we'll discuss the best time to send a delinquent account to a commercial debt collection agency.