Commercial Collections Blog

Third Party Collection Agency

Many ask the question “why should I use a third party collection agency?”

Using a third party collection agency creates a buffer between you and your customer, preventing charged up emotions from damaging your business relationship. Your time can be spent on income-generating tasks because your collections are being handled by the collection agency. This allows you to focus on growing your business and servicing your clients while the collection agency deals with your debtors and maximizes your debt collection results. Debt collectors also have specific experience in dealing with non-paying customers. This allows them to be objective and level headed in dealing with your debtors in a professional manner because they are emotionally detached from the customer.

Contact your National Sales Representative today and get started on the path to recovering your cash flow momentum.

With warmest regards,
Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Statutes of Limitations When Collecting On a Past Due Account

The statute of limitations concerns the amount of time within which a legal remedy may be brought. In the case of the collection of a debt, many statutes of limitations are set by individual states and may vary considerably based on the type of contract. For example, the limitation on a judgment may be longer than one involving open or revolving accounts. It should be noted that the statute of limitations can often be revived with either a partial payment or a written promise to pay.
A debt collector isn’t bound by a statue of limitations when requesting payment on a debt. However, the debt collector may violate provisions of the federal Fair Debt Collection Practices Act when threatening to take legal action when the debt has gone beyond the statutory time limit.

The Credit Manager’s Q&A Corner
QUESTION: Explain the importance of liquidity ratios.

ANSWER: Liquidity ratios are probably the most commonly used of all business ratios. Creditors may often be particularly interested in these because they show the ability of a business to quickly generate the cash needed to pay outstanding debt. This information should also be highly interesting since the inability to meet short-term debts would be a problem that deserves immediate attention.

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