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Collectively Speaking: Timing is Everything

Collectively Speaking: Timing is Everything | Brown & Joseph, LLC

Regardless of the state of the economy, it is essential to be able to review and identify problems or slow-paying accounts as quickly as possible.

A customer’s ability to pay rapidly decreases the longer it stays in collections.

One of the most important statistics which contributes to the success of collecting past due accounts is the age of the account when submitted.

Collection procedures should be done in a timely manner with regular follow-ups (10, 30, 45 days, etc.). Reminders, statements, past due notices and telephone calls are essential internal methods to be used.

Direct these contacts to the person with the authority to initiate payment. Keep contacts short. Be firm, yet personable. If there are disputes they should surface quickly.

Handle them quickly and accurately and put any and all arrangements, payment schedules (including late fees, and/or interest charges) in writing.

Remember, even when the economy is good, after 90 days, you lose approximately 10% per month on unpaid commercial balances.

When accounts have to be placed for collections, the strength and impact of our law office will recover more money to your bottom line.

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