When you run a business, it’s important to establish an effective strategy for managing the accounts receivable. This will allow your company to accomplish many goals, such as reducing costs, increasing liquidity, funding growth, and staying ahead of the competition. As such, when past due invoices begin to mount, it can put the operations at a serious disadvantage. For this reason, it’s crucial to recognize when your business could use the help of a collection agency before your finances get too far behind. 

How to Know When It’s Time to Seek Help From a Collection Agency 

1. Your Accounts Are More Than 90 Days Past Due 

The longer a bill goes unpaid, the more difficult it becomes to collect on. Debts that are at least three months past due typically take even more time to recover, and the amount you are likely to get back starts to dwindle. Therefore, it’s best to have an agency begin collection procedures on older accounts that will require more work and diligence to track down. 

2. You Don’t Have the Staff to Devote to Collection Efforts 

If your organization is too small to have in-house staff specifically dedicated to collecting debts, professional debt collectors can take action when bills aren’t paid on time. Trying to collect on accounts yourself will require a great deal of extra time and effort you don’t have when managing all of the other responsibilities of operating a business. Hiring a collection agency will allow you to stay focused on serving other customers and boosting the company’s bottom line. 

3. You Have Trouble Paying Bills 

Even just one late payment can affect your cash flow and slow down the entire operating system. This can create problems when it comes to managing your company’s own debts. If you are having trouble paying creditors, ask a collection agency for assistance getting your finances back on track, so you can avoid a tarnished reputation.  

4. A Debtor Seems to Have Disappeared 

In cases where a debtor is suddenly nowhere to be found, it’s strongly recommended that you send the account to a collection service. They have extensive resources at their disposal to help uncover the location of customers who have gone into hiding to keep from having to pay what they owe. Then, they will know how to hold them accountable for their debts.

Closely monitoring the flow of your company’s funds is essential for keeping it afloat. If the accounts receivable aren’t being paid as planned, Joseph, Mann & Creed can help recover what you’re owed. From their home base in Cleveland, OH, the collection agency has been entrusted for nearly two decades to help businesses across the country secure late payments. You can rest assured they will remain respectful of your customers while employing proven tactics to resolve outstanding debts. Call (216) 831-5626 to request an estimate for service, or visit them online to learn more about the approach they take to keeping accounts balanced. Follow them on LinkedIn for up-to-date news and information.