| Past due accounts receivables are a constant | | | | collection letter it is a good bet that further debt |
| problem with many businesses especially during any | | | | collection letters and contacts will be unsuccessful. You |
| economic down turn. Sometimes the time and effort | | | | may consider using the telephone to contact the |
| to get paid will exceed that needed to make your | | | | customer however you must be well prepared with a |
| business grow and function efficiently. This makes an | | | | script that keeps you focused on the collection |
| efficient system of contacting your past due accounts | | | | process. In most cases unless you have had the |
| very important. There are basically four stages of debt | | | | proper training telephone collections are best left to the |
| recovery that are employed by businesses. | | | | experts. |
| Initially a business that has past due account | | | | The next step in the collection process is to employ a |
| receivables will use its own resources to contact the | | | | collection agency to recover your past due accounts. |
| customer. In most cases this is done with debt | | | | Collection agencies are expensive to use many times |
| collection letters. Normally the first collection letter is | | | | requiring large upfront fees. Online debt collection |
| sent out within 15 days after an account is past due. | | | | agencies are much less expensive many times costing |
| This is normally a gentle reminder that the account is | | | | less than 10 dollars per collection effort. In addition |
| past due and a request that they contact your | | | | online debt collection allows the business owner to |
| business if there are any questions or they need | | | | recover more of the debt and control the collection |
| assistance. | | | | process from the businesses computers. Essentially an |
| Second debt collection letters are normally sent after | | | | online debt collection agency uses professional debt |
| another 30 days have passed and the customer has | | | | collect letters to begin the collection process. Getting a |
| not made contact with you. The letter should again | | | | collection letter from a professional collection agency |
| state the amount that is past due and how long it is | | | | has a chilling effect on most past due account holders. |
| past due. Enclosed with the letter should be copies of | | | | If the efforts of an online debt collection agency are |
| the original invoice. Again you should urge the customer | | | | not effective then your only recourse is to sue the |
| to make immediate contact with you. Offer incentives | | | | debtor. In many cases you can file in small claims court |
| to make the payment and let them know that you are | | | | and manage the case yourself. However if the debt is |
| willing to work with them. Note that failure to take | | | | substantial you will need the skills of an attorney to |
| action could mean filing a report with the business | | | | effectively sue the debtor. Obviously this is a very |
| credit bureau or turning the account over to a | | | | expensive option and thus the amount of the debt |
| collection agency or a lawyer. Always include a self | | | | must be substantial to make the process worthwhile. |
| addressed envelope with a stamp to encourage a | | | | Whether you use an online debt collection agency, the |
| response. | | | | courts or do the collections in house the process of |
| If the past due account does respond to the second | | | | collections is expensive and time consuming. |