Commercial Collections Blog

Keeping your bottom line solid is more  important to you than allowing those few non paying customers to stay on the books.

Cash allows you to keep your employees and business operating not hanging on to broken promises from a couple of bad apples in your customer list.

Use the extra cash you collect to install a better credit policy.

Be cautious with new and older customers, set limits and be prepared for difficult collection efforts, by your staff or by your selected outside collection agency.

Choose yourcommercial debt collection agency before the problem arises and get them involved earlier than you have in the past, the collection wars are under way.

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1. Review debtor orders, payment history, communications,current status,ability to make contact,effort being made by customer, risk assessment
2. Review staff efforts, review all potential tracks to be followed, be demanding and do not back down, set date to be paid or change course
3. Move the debt to a professional debt collection agency, you are being victimized by a professional non payer and you need help

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1. The hardest thing about hiring a commercial collection agency is the timing. For the most part the rule of thumb is 90 days.
2. When the customer has many past due accounts rather than one large one.
3. If and when the customers phone is discontinued, waste no time contact your agency partner.
4. Do not let other delaying tactics such as continually asking for documentation, playing dumb, change of contact person to reset the denials of debt.

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1. Join trade reports, newsletters, and web sites for industry updates
2. Implement a strong Credit Application
3. Create a risk screening process prior to credit initiation, with credit limits
4. Track order and payment history
5. Institute timely notice of past due accounts
6. Know the steps to be initiated when account is past due
7. Set trigger points for past due letter and phone notification
8. Know when to use outside collection agency, time is money
9. Hold future orders and use prepayment until payment is finalized

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