If your small business doesn't have the manpower to pursue past-due payments, you’ll have to turn to a collection agency for help if a client falls behind. How do you know when it’s time to call in a third party, though? While there's no single answer that applies to all scenarios, asking yourself these two fundamental questions will help you decide if hiring a collection agency is necessary. 

What Is the Client’s Payment History?

If the client has a habit of making late payments, an unpaid invoice isn't necessarily a cause for concern. Unless the payment is considerably later than those the client submitted in the past, chances are it’s on its way.

If you want to stop the pattern of late payments, though, it may be wise to hire a collection agency regardless. Enlisting help from a third party that will be able to resolve the debt while maintaining goodwill between you and the client will actually strengthen your business relationship. It will also establish new expectations moving forward, thereby ensuring you get paid on time, every time. 

How Has the Client Responded to Requests for Payment?

If the client has answered your inquiries and explained why the payment is late, you may not have to enlist reinforcements. On the other hand, you should seek help from a professional collection agency if they’re dodging your calls.

Generally speaking, the sooner you attempt to collect the debt, the more likely you are to recover it—and if the client’s ignoring you entirely, you shouldn't waste any time.

Some businesses opt to give customers 30, 45, or 60 days to catch up on past-due invoices in the hopes that they can avoid hiring a collection agency altogether. Keep in mind, though, that once 90 days have passed, recovering the funds is highly unlikely. 

If your business needs help from a reputable collection agency, turn to Joseph, Mann & Creed. Based in Twinsburg, OH, they’ve been serving professionals and small businesses around the country since 2001. As a tenacious accounts receivable management company, they boast a high recovery percentage for their clients. Backed by more than 60 years of experience in the field, their agents know what it takes to resolve debt. Connect with them on LinkedIn to learn more about the services they provide. To request a quote for your company’s needs, call (216) 831-5626 or reach out on their website.