Flathmann & Stern

Why you should consider using a commercial debt collection agency

Many businesses struggle to collect payments from customers who are delinquent.  A commercial debt collection agency can help, and sometimes be the difference in a company making profit, or even staying in business.

A commercial debt collection agency can help a variety of businesses collect their outstanding payments.  They can help landlords of large properties collect their overdue rents.  This can help save the landlord from bankruptcy.  An agency can help auto dealerships collect on their monthly payments.  Also, many banks hire commercial collection agencies to help them collect on defaulted loans.  This is a much more effective practice than seizing the property and auctioning it off, which will only recover a fraction of the value.  An agency can also help a doctor’s office collect on services provided but not paid for, which can amount to a lot of money.

A commercial debt collection agency can make a huge difference for many businesses.  As you can notice from the examples above, a commercial collection agency can help just about any business that is having a hard time collecting their accounts receivables that are past due.

The key to working with a collection agency is giving them the account before it is too late.  If you have an account that is over a year old, then the chance of collecting the debt goes down drastically.  Ideally, if an account is delinquent for more than 60 days, you 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 being paid and will not tolerate late payments.

Once you have a good relationship with a collection agency, it is best to stay close with them and let them handle any overdue payments.  Late payments are a part of business, as everyone knows, but how many times are you going to let the money slip through the cracks?

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