(1) When Should You Place Your Accounts With A Collection Agency For Collection

Let's face it. Your work is piling up. You have a stack of paper work marked "urgent" and you don't really have the time for other tasks. Your accounts receivable outstanding is increasing. You have no one who can assist you. Outsourcing your accounts receivable is the answer.

Competition for quality employees is fierce and good, but reliable talent is becoming harder to find with increased salaries. Using external sources to help with routine business chores will save you time and allow you to concentrate on your core competencies.

Generally if an account is more than 90 days old, attention should be placed on such accounts. At that point, most creditors would have sent out several statements and reminder letters and made several collection calls. The customer's lack of response to the reminder letters and phone calls usually indicates that there is a cash flow problem or lack of concern. A collection problem exists and the account should be placed with a reliable and professional collection agency.

Collection problems also exist if you encounter any of the following situations :

(a) Two or more broken promises of payments

(b) Your customer claims that he did not receive the invoice and requests repeatedly for copies of the invoices

(c) Your customer refuses to make a commitment for payment or to work out a payment schedule

(d) Your customer repeatedly avoids your phone calls

(e) Your customer disputes the bill after more than 6 months

(f) The telephone number of your customer has been given up and he is no longer contactable