You have a growing small business, are “doing everything right”. You use customer contracts and have a good plan to recover bad debt in-house. When do you need to hire a collection agency?
Here are 8 signs you need to get some outside help
- You have a growing number of receivables over 90 days past due.
- You are spending too much time chasing non-paying customers and you do not have enough time for sales and customer service.
- You are having trouble paying your creditors because you are owed so much money.
- You do not have the cash flow to hire new employees or buy new equipment.
- Customers you have been billing move and you have no way to find a new address or contact information for them.
- You and your staff do not wish to be involved with customer disputes over payment.
- You have been going to small claims court and getting judgments, but are still not getting paid.
- Your accountant tells you that you cannot get a tax benefit from writing off your bad debt.