Many companies struggle to collect payments from delinquent customers. A commercial debt collection agency can help and sometimes make a difference for a business to make a profit or even stay in business.
A business debt collection agency can help a variety of businesses collect your outstanding payments. They can help large property owners collect their overdue rents. This can help save the owner from bankruptcy. An agency can help car dealers collect their monthly payments. Additionally, many banks hire commercial collection agencies to help them collect delinquent loans. This is a much more effective practice than property seizure and auction, which will only recover a fraction of the value. An agency can also help the doctor’s office collect for services rendered but not paid for, which can be a large amount of money.
A commercial debt collection agency can make a big difference for many businesses. As you can see from the examples above, a commercial collection agency can help almost any business that is having a difficult time collecting their past due accounts receivable.
The key to working with a collection agency is getting the bill before it’s too late. If you have an account that is more than one year old, your ability to collect the debt is drastically reduced. Ideally, if an account is more than 60 days past due, it should enter the collection process. This gives the agency the best chance to collect the debt and also shows the debtor that you are serious about paying and will not tolerate late payments.
Once you have a good relationship with a collection agency, it is best to stay close to them and let them handle late payments. Late payments are part of the business, as everyone knows, but how many times are you going to let money slip through the cracks?