Do you feel like you are being financially abused by customers and clients? Collection of accounts receivable can be a frustration on many levels.
Many small businesses don’t have a dedicated staff for collecting on outstanding debt, so chasing down bad debt takes time away from other priorities. They often rely on methods that are rarely successful, and wind up writing off significant chunks of revenue. With today’s economic situation you need every client to pay their debt – you cannot afford write-offs.
Why aren’t you collecting your accounts receivable?
When running a business, it’s easy to get caught up in day to day financial tasks: paying employees, handling taxes, paying the mortgage or the rent, and more. When you focus on these important factors you may place debt settlement practices at the bottom of your list – there is no question that it can be an unpleasant task.
But in extreme cases, avoiding this issue will keep you from having the funds you need to operate your business. The bottom line? You must receive all money owed to your business to keep it running successfully. When you increase collection of a/r you will inject your business with much needed cash.
You can protect yourself from bad debt and lessen the expense of collecting on accounts receivable by hiring a third party to contact past due clients and collect on the money.
Prevent Bad Debt Before It Starts
There are certain practices you can implement to control bad debt and avoid having to spend time and money on AR recovery. Debt collection agencies urge small businesses to carefully evaluate each customer before extending credit. One of the most successful ways to cut down on bad debt is to prevent it before it even occurs.
Don’t be afraid to offer different levels of credit to your customers depending on the apparent risk, either. You don’t have to be a credit card company to allow more dependable payers to carry bigger balances.
If collecting your debt is important to your small business, you’ll benefit from hiring a dedicated agency. Your staff should be performing the jobs they were hired to perform – not jobs they are not trained to do such as AR retrieval. Working with dedicated agencies is your best bet for receiving the money your clients owe and keeping your business solvent.
Collection of Accounts Receivable Prices
Pricing details: My company was looking for help with the collecting on accounts receivable. We went with a company that would charge 20% of the amount collected.
– Manufacturing Industry, Peachtree City, GA
Pricing details: We chose a company to work on the collection of our accounts receivable. They are currently working on our needs and the fee we pay them is based on what they collect for us.
– Business Services, Milford, CT
Pricing details: Talked to many bad debt recovery agencies and was able to agree with a company that they would take on 30% of the fund collected.
– Photography Business, Ann Arbor, MI
Pricing details: Went with an A/R collections company that charged us $190 for the year and allows me 4 cases under $10,000 and I keep all the proceeds.
– Retail Industry, Bellmawr, NJ
Pricing details: The agency we selected works strictly on a contingency basis. They will only get paid a percentage of what they are able to collect. Their pricing and professionalism was outstanding.
– Restaurant, Fort Lauderdale, FL
Pricing details: We were searching for a company that would help us with retrieving money legally owed to us. We ended up finding a company that didn’t require us to pay an upfront fee and they would take 15% of the funds that were collected.
– Consulting Firm, Charlotte, NC
Pricing details: We received information from various agencies and we decided to go with a company that took 20% of the amount collected and 35% if it went to court.
– Business Services, Orange Park, FL
What other people are looking for
I own a dental practice and I am looking for a company that will be able help with the collecting on outstanding debt. I have all of the the contact information for these accounts.
– Health Care Office, Geneva, IL
We are in need of a company that has experience in collecting on accounts receivable. We need to have $27,000 collected for us from a company that is located in Costa Mesa, CA.
– Manufacturing Industry, Dublin, CA
Our company is looking for information from a couple of different debt agencies. We have a client who is refusing to pay for the alloy steel plate that we cut to his specifications.
– Manufacturing Industry, Kenilworth, NJ
Looking to speak to a few bad debt collection agencies. Currently using a company but would like find someone new to work with.
– Business Services Company, Albuquerque, NM
We have a contract with a company where we have been providing delivery services for them. They currently have two outstanding invoices and have ignored all forms of contact. We are looking for a company who is able to help us collect.
– Transportation/Logistics Industry, Saint Augustine, FL
We are looking to collect on 5 outstanding invoices from 3 stores all owned by the same owner. We need the services of a bad debt recovery company.
– Wholesale Company, Los Angeles, CA
We are looking for a company to help us with our ar collections. They are due from individual dealers of farm related equipment.
– Agriculture Company, Seguin, TX