Knowing when it’s time to send accounts to a third-party agency for collections can be more art than science; more feel than anything else. The tendency can be to wait and wait, because you’re worried that an individual is going to stop using your products or services because you prompted a collection agency to start calling and sending letters or because it led to the debt being reported to the credit reporting agencies. But that is more of an old wive’s tale than anything else. A myth that companies tell themselves to keep from collecting. Whether it’s you making inquiries about getting a debt paid or whether it’s an agency working on your behalf, consumers will feel the same.
Companies that look at unpaid accounts that way are not looking at the situation from the right perspective. It’s not a potential lost customer; it’s someone’s salary that is not getting paid, or, it’s a debt of your own that is not getting paid. You need revenue to make sure your company can continue to operate. You’re not operating a charity, after all.
You’re not doing anyone any favors by holding off on attempting to collect on unpaid debts. You’re either dedicating resources you don’t necessarily have or losing out on revenue that is needed to help you operate and grow your business. The longer you wait, the chances increase that you won’t be able to find the person. Debts are something that nobody wants. But sitting on them doesn’t make sense for anyone.