Submit Your Claim EARLY in the Game
An aged account becomes less viable with each and every passing day. The number 1 mistake creditors make regarding past dues is to wait to act until it’s too late. The chance of recovering a debt after 90-days past due is significantly lower.
Consider the many things that may be going on behind the scenes with an aged account. The business may be failing. The owner may be selling or filing bankruptcy or going out of business. If any of those are the reasons for the delinquency, the options available to you for recovery become quite limited.
You must act while there are funds available!
Of course, it’s possible that the reasons for delinquency may be far less serious. This is the reason we counsel our customers to follow a strict timeline for collections. If a friendly reminder notice will do the trick to exact payment, that’s the best of all possible outcomes. But when a late pay has stepped over the 90-day line after repeated efforts to collect, you’re approaching the time to change your strategy.
When your customer stops paying on time, you’re wise to suspend further shipments while simultaneously initiating your collection efforts. When a late pay account is in the 90-120 days past due range, it’s time to place the account with a commercial debt collection agency. If your customer breaks his promise to pay at this point, it’s time to submit your claim to your agency.
Submit your claim early in the game for the best chance of recovery!