- December 14, 2015
- Posted by: Taurus Collections
- Category: Uncategorized
As a company that specialises in collection of commercial debt, we often find our clients asking us at what point they should consider outsourcing of overdue accounts to a 3rd party.
While there is no definitive answer on this as each case is different, there are some rules you can apply to debtors that you might want to consider 3rd party help when it comes to collection of commercial debt:
- Relationship – how good are things between your customer that isn’t paying you. Are there more orders in the pipeline? Do you know the Directors quite well or personally? If you referred the collection of commercial debt to a debt collector would they be offended and possibly never use you again?
- Age of debt – if the debt is just a few days past 30 days, then a friendly but firm, email and letter call can often be enough to prompt payment. However if the debt is approaching 50 or 60 days and there is no response from the debtor or they are raising fictitious disputes on the order, then you might want to consider help in collection of commercial debt.
- Communication – how are they responding to your chasers? Often a slow response or none at all can be a sign of disorganisation or worse, insolvency. You need to make sure they are responding regularly and “keeping you in the picture” if they are struggling with collecting cash themselves. They key is to call them and find out why the payment is late, confront them and discuss the situation. Letters and emails can easily be ignored in collection of commercial debt.
So these are a few tips on what to look out for in your business. Always consider the bigger picture if your customers are paying late, and if in doubt speak to a collection agency about the options they have for collection of commercial debt. Most companies can offer a No Win No Fee service or a fixed-fee to keep limit your spend, and pass the costs onto the Debtor.
If you would like to discuss collection of commercial debt, please call us on 01332 565 350 or email firstname.lastname@example.org