When and Where to Get Collection Help

Typically companies wait too long before taking action on past-due customers that exhibit classic sings of becoming debtors. Mostly, hesitation ends up costing the company money and decreases the chances for successful debt collections. While companies wait for payment, other more sophisticated creditors are making demands and taking actions that will result in their debt being paid first.

Keep in mind that collecting money is a competition. Your company is competing for the same accounts payable dollars as all of the other creditors that extended credit to your customer. Whoever has the best game plan will collect faster thus increasing cash-flow and strengthening position in their industry.

According to the US Department of the Treasury, an invoice that is 60 days past the due date is around 80% collectible. After six months, it is only about 50% collectible. This quick decline in collectibility should be considered when submitting invoices to a collection agency.

If your collection department is spending the majority of its time on older invoices, valuable time is wasted contacting invoices that aren't as likely to pay and not concentrating on contacting newer more collectible invoices. This can result in a vicious cycle of delinquency draining cash-flow and hurting your bottom-line.

To take immediate action against customers that have turned to debtors, contact us.

I would like to take this opportunity to thank you for all your support. You have worked a number of difficult problem loan situations and have always done a great job with your attention to detail and active follow-up. CIT has always been proactive in its collection efforts and recognizes the benefits of having a firm like Aguirre, Aikman + Brown assist with the collection effort.

Vard K. Griffith
Vice President, CIT
Business Credit

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