Debt Collection: Decision Day
Today we will talk about the importance of having a D-Day or decision day in regards to debt collection. This is the day that you move forward in the collection process and start actively collecting the debt. If you do not have a deadline for collecting your debt, then you are liable to get your company into some difficult financial situations.
It has been proven time and time again, that the sooner you start the collection process, the more likely you are to collect the debt. Most people think of this evil process when collecting debt, but it does not have to be this. You can send a letter out or just make a friendly phone call to the debtor or business. This is just a heads up and to let them know that you expect to get paid. You would be amazed at how many businesses do not do this.
Take the time to setup a plan of action for your old accounts. It may take a couple of hours or days, but it is well worth your time and effort. You can even work hand in hand with a professional collection agency to setup the right strategy for collecting your debt. If you find the right collection agency, then they can work like an in-house agency. When they know your expectations, they can better serve you and help you keep your customers.
Many businesses worry that they will scare away their customers if they proceed with collections. This can be true, but if you keep their needs in mind you have a better chance of keeping them.
So when is the best date to start the collection process? As a rule of thumb, you better turn over your accounts no later than 90 days. This ensures that you will get paid. The longer you wait, the less of a chance that you can collect. If you act at 90 days, you have a better chance of your account rising to the top of the stack. You are not the only person who would liked to be paid. Keep this in mind and act sooner, rather than later.
Good luck with your debt collections and let us know if we can help you.