The horizon is an interesting concept. It never appears to get closer or further away — in a way acting like a fixed point in space — but we all know that the further we get away from an object, the smaller it gets in our field of vision. At a certain point, it disappears entirely and we are unable to see it. All that is left is our memory of it.
Unpaid receivables and objects in our rearview mirror are a lot of like. The further away you get, the less visible they become. There are countless reports that prove the longer that collection efforts are delayed, the lower the chances that the account will be repaid. Consumers forget or other priorities begin taking precedence and the unpaid debt languishes, uncollectible.
Making the decision to send an account to collections can be emotional. It’s natural to want to give someone more time to try and pay a debt before assigning the account to your collection agency. You worry that it will upset the customer and they won’t come back to use your services, or that you will be painted as being too aggressive or be labeled as uncaring. But emotion really has no place in the decision to send an account to collections. It’s a business decision. Without revenue, your business won’t last. The longer you wait to place an account, you hurt your chances of ever recovering that money.
NOT A LONG-TERM SOLUTION
Forgoing the decision to try and collect on unpaid accounts can seem like an altruistic decision. It may feel like you’re doing someone a solid by not trying to collect from them, but in the end, it’s a decision that hurts your business. Whatever services you performed, you deserve to be paid for them. Unpaid debts are not like wine — they don’t get better with age.
Placing an account with a collection agency does not have to feel like it’s an excessive or aggressive step. It’s an opportunity to have someone who specializes in this kind of skillset work on your behalf. Collection agencies know how to get in touch with consumers and know how to develop payment plans that work for everyone involved. That is the best end-result — where the debt is repaid and everyone is happy. That is not a fairy tale. It happens every day.
Don’t treat your unpaid debts like items in your rearview mirror. Keep them close, don’t let them fade away, and be better off as a result.
Want to learn more about how we can help you collect on unpaid receivables? Reach out to us today!