If you own a small business, you are probably already familiar with how difficult it can be to collect an outstanding debt or owed money. You want to receive your due payment, but your repeated attempts to collect from your customer haven’t been successful. If you’re thinking of hiring a collections agency for your outstanding debt, we have some tips and advice to make the process a breeze for both your business and your clients!
How Can I Send an Account to Collections?
Placing accounts is easy with Alacrity. Once your agreement is signed, we’ll need the following information: account name, address, telephone number(s) and balance due amount that is outlined on a copy of the most recent itemized bill/invoice that indicates all the date(s) of service/services rendered that you would like to place in collections. We’ll request any additional information we need, but it makes sense to include as much information up front as possible to keep the process streamlined.
If you have a high volume of overdue accounts, instead of mailing past due account information or securely uploading the documents to our dropbox, we can develop an interface to receive electronically transmitted accounts directly from your system to ours.
When is the Best Time to Send an Account?
For most U.S. states, the statute of limitations for collections is three years from the date of service. It is preferable that you send accounts that are within two years from the date of service. However, for best results, we recommend sending accounts when they are 90 – 120 days (or 120-180 days for medical accounts) from the date of service. That is the window when it is most likely that our efforts will result in a positive outcome. According to national statistics gathered by ACA International (formerly American Collectors Association), the chance of collecting on a bill that is 14 months overdue is only about 4%.
What About Collection Fees?
If the signed contract with your client states that a fee could be added if the debt becomes delinquent, then it may be added to the principal balance. In general, we do not recommend this practice. Should you choose to add a fee to the principal balance, remember to send your customer a new bill advising of the added fee and new balance before sending it to collections.
Hire Alacrity to Collect Your Overdue Accounts Receivable
Alacrity Collections is proud to be a leader in debt collections since 1982. Chasing overdue invoices is not an effective use of your time. Let our team help so you can work on running and growing your company. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect. We work tirelessly to protect your brand and improve your net returns. To learn more about our services and get in touch, please call us at 1-800-752-9663 or email us at firstname.lastname@example.org.