Collecting payments on time is imperative for the overall financial health of your company. Delays not only put a halt to your cash flows, but also keep you from making further payments, hindering potential investments you might need to make into your business.
Businesses often make the mistake of waiting for too long before they outsource their stubborn accounts receivables to a professional debt recovery company.
For every 30 days you delay, chances of debt recovery reduce by at least ten percent, so it is actually beneficial to outsource to a debt collector sooner rather than later.
If you’re still hesitant, here are a few alarming signs that should be waving bright red flags to push you to outsource your receivables to a debt collector right away.
Customer’s Ignorance
When you send your customer a strong message indicating it’s actually time for them to pay, and they avoid it, that’s definitely a red flag. Outsource the account to your debt collector right away and allow them to act on your behalf as a third party.
When your customer hears from a debt recovery company, they are actually more likely to get their act together because their credit score is at risk. Use that to your advantage.
Refusal to Sign a Personal Guarantee
If the customer doesn’t sign a guarantee backed up by their own company, this might be a big indicator of their lack of creditworthiness. If you’ve already gotten into business with them and they owe you money, your best bet would be to outsource the account to a debt recovery company to retrieve your payments.
If the customer doesn’t sign a guarantee backed up by their own company, this might be a big indicator of their lack of creditworthiness. If you’ve already gotten into business with them and they owe you money, your best bet would be to outsource the account to a debt recovery company to retrieve your payments.
Dispute over Original Agreement
If your customer suddenly refuses to follow the original payment terms you had agreed upon, that should definitely ring some warning bells in your head.
Outsourcing to a debt collector at this point would help send a strong, firm message to your customers that breaking payment terms is not acceptable at all. Let your debt collector handle these disputes and recover your payments from the customer.
Hire Partners In Credit for Your Company’s Debt Recovery
Well, then, why wait? Outsource all your uncooperative account receivables to Partners in Credits. With over two decades of experience as a leading company in the debt recovery industry, we know all the tricks and techniques to recover outstanding debt.
Alongside developing customized solutions to help credit grantors, our services also include first party, primary to debt warehouse collection of accounts, trace services, legal services, and any other assistance you might require to help you recover your debts. For more information, email us at [email protected] or call 1-888-730-6333.
