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Topics: Accounts Receivable Management

Are your customers behind on their payments? Do you have a number of accounts you’re ready to write off as bad debt?

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These are only a few of the factors involved in deciding to bring in debt collection experts. If you’re struggling to collect on your accounts, it’s probably time to get a helping hand. If you see any of these five signs in your business, you should start searching for a partner today.

1. You Have Overdue Accounts

The amount of time businesses wait to declare an account a “bad debt” varies. You probably won’t declare it as such after a few days, but as time wears on, the more likely it will become a bad debt.

Some wait between 90 and 120 days, while others will let accounts linger for up to a year before they write them off. The important thing to keep in mind is the longer you wait, the less likely you are to collect the debt.

Nonetheless, if you have accounts in arrears over 90 days, it’s probably time to call in the debt collection experts. These experts are experienced and knowledgeable about tracking down bad debts and customers who have skipped out on their bills. Put them to work and collect what you’re owed.

2. Non-Responsive Customers

Some people wait for up to a year before they write off unpaid accounts. In the meantime, however, you’ll probably try to collect the account from the customer. Most of the time, this involves sending notifications and reminders.

Some customers will respond initially but eventually stop replying to your messages and reminders. Others just don’t respond from the get-go, as they either can’t pay or have no intention of paying. If your customers have stopped responding to you, it’s time to call in the debt collection experts to track them down.

3. You Have Cash Flow Trouble

The reason good accounts receivable management is so important is that it helps your cash flow. Cash flows are the lifeblood of most businesses, but they’re particularly important for small businesses. Business owners take on debt in order to pay for production, labor, and so on. You pay for these services with the money you collect from your customers. When your customers don’t pay, you suddenly have a problem.

If you find yourself digging deeper and deeper into debt just to stay afloat, as your accounts remain overdue and outstanding, call in the debt collection experts. They can not only help you collect on the overdue accounts but also design a better process to minimize your cash flow woes.

4. Your Credit Policy Needs Work

One reason you may have a number of unpaid and overdue accounts could be your credit policy. If it’s insufficient or nonexistent, you’re going to extend credit to customers you’d probably be better off not offering an account to.

This is one of the areas you can work on before collections becomes a problem for your company. If it’s already a problem, it’s probably time to review the policy and revise.

Debt collection experts can help you here too. While their expertise may lie in collecting debts, many of them are also experienced with accounts receivable in general and have a good idea of what your credit policy should look like in order to stop problems before they start.

5. Difficult Customers

Some customers will complain about their bills. They may have agreed to purchase the service or product, but when it comes time to pay, they’ll argue they were overcharged or haggle with you about the price. Others may deny they ever bought anything at all and will tell you they’re not responsible for the bill!

In these cases, you need help from debt collection experts. These customers can be difficult to work with, but debt collection experts have plenty of experiencing handling them. Having the experts handle these accounts can even save your customer relationships.

How-to-Save-Customer-Relationships-by-Outsourcing-Accounts-Receivable-Management

Jason Henning

Jason Henning

Jason is the senior vice president of Bill Gosling Outsourcing’s offshore location in the Philippines. He began this role in 2012 and was an integral part of the company’s development. Jason has over 10 years of experience in international operations; he managed all aspects of operations, profitability, and business development for Convergys’ offshore accounts receivable management. He’s also an avid golf player and a Delta Million Miler traveler.

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