“Ask CashFlo” is a credit and collections advice column for small businesses. Questions may be submitted via email to flo@askcashflo.com. Follow CashFlo on Twitter @AskCashFlo. CashFlo reminds readers that she is not an attorney and nothing in this column should be construed as legal advice. As CashFlo always says, “When in doubt, consult your attorney”.

Dear CashFlo,

I have a small internet marketing business in Connecticut. I have a customer that used to pay me on time but for some reason stopped paying me over a year ago. I have sent collection letters and I have called them every day for the past  nine months, and still nothing. Is it time to hire a collection agency?

Hurting in Hartford

Dear Hurting

No, it is not time to hire a collection agency. It is WAY PAST TIME to hire a collection agency! Honey, listen to CashFlo. You know the definition of insanity – doing the same thing over and over and expecting the same results? Well, calling someone every day for nine months and thinking that it will get you paid is, (forgive CashFlo please) just nuts?

Escalate the process immediately. Find a good attorney or collection agency right away.

Every customer is different, but if you have sent invoices for two months, without response, then it is time to send the final notice at 90 days and get thee to a collection agency. If you wait too long to send it, your customer could be out of business, and unless you have a personal guarantee, you are out of luck.

You will be “Hurting” a lot less if you find a good collection partner. Make sure to work closely with them so that you get the very best results.

Good luck and yours truly,

Ask CashFlo

PS Looking to hire a collection agency but not sure where to start? Start here!