Is your business or healthcare practice struggling with a growing pile of unpaid accounts receivable carried over each year?
Do you feel that you’ve exhausted all options collecting old debt and it’s time to cut your losses?
Don’t settle for nothing. Rather, pass the buck to a collection agency to get those bucks back for you!
Deciding to turn delinquent accounts over to a collection agency can be difficult because you want to keep a good relationship with customers or patients. But you have bills to pay and a business to run, and can’t do it for free!
There are common concerns among business owners when it comes to collecting past-due accounts:
- When is a debt large enough to try and collect? Or too small?
- You don’t want to “hound” good customers or long-time patients having unexpected financial difficulty.
- You don’t have a “past-due accounts will be considered delinquent and subject to collections” policy.
- You’re concerned that collectors would use harsh tactics and create ill will.
While past-due accounts receivable are a reality of business – they shouldn’t be considered the cost of doing business. Consider doing the following:
- Implement your policy on turning accounts over for collection; if you don’t have a policy, set one and follow it.
- Consider an agency that collects on debt of all sizes, no matter how small.
- Choose an agency that works on contingency and isn’t paid until you are.
- Find an agency committed to debt recovery for the client, and that also treats those in collections with understanding and respect.
Do your homework before making the final decision to turn accounts over to a collection agency. Ask other business owners who they use. Check out the agency’s website and learn more about their services and process. Are they a member of the national debt collection trade associations? See what the Better Business Bureau has to say; what is their rating, are they accredited, are there numerous complaints about the agency? If you are in a specific industry; e.g., healthcare, make sure that the agency is experienced in that industry.
Remember, the ultimate decision of whether to continue to handle uncollected debt internally or turn it over to a professional debt recovery agency is yours. However, also bear in mind that turning over what can be an unpleasant task for you or your office staff brings not only peace of mind, but a return to your financial bottom line – and frees you up to focus on other aspects of your business.