| Oftentimes, business spend almost 100% of their | | | | 25 cents of every dollar owed. The most efficient |
| time focusing on how to get new business in the | | | | way to start the collection process is to send a |
| door but have no specific process for collecting on | | | | 10 day demand letter. Aguirre, Aikman, and |
| past due accounts. Business owners might be | | | | Brown collection agency offers a free 10 day |
| surprised at how much revenue is waiting to be | | | | demand letter which is sent on official collection |
| collected in the form of past due accounts. With | | | | agency letterhead after you fill out a simple online |
| these 5 steps, you'll be on your way to | | | | form. Through AABUSA, printing and mailing are all |
| recovering a great deal of found money: | | | | free of charge. Oftentimes, a 10 day demand |
| Take Inventory | | | | letter from a collection agency is enough to get a |
| The first step is to find out just how much | | | | customer to pay. |
| revenue you're missing from past due accounts. | | | | Contact a Collection Agency |
| Flag any accounts that are more than 30 days | | | | Just like you are a specialist in your field, a |
| over due along with the date that the last | | | | collection agency knows what works when it |
| payment was made. Enter the customer's name | | | | comes to collecting overdue payments. There are |
| in column A and the date of the last payment in | | | | very specific rules and regulations around the |
| column B. Label column C "days overdue and | | | | permissible methods of contacting a debtor to |
| insert the Excel formula =TODAY()-B2, which will | | | | collect on a past due balance. A collection agency |
| return the exact number of days it has been | | | | stays up to date on consumer rights laws to |
| since each customer made a payment. This free | | | | keep them and you out of trouble while still |
| and simple organizational tool will help you prioritize | | | | achieving the desired results. No debtor likes the |
| your collection efforts. | | | | idea of owing money to a collection agency and |
| Call the Customer | | | | debtors are more likely to pay once contacted by |
| You don't have to be a collection agency to give | | | | a collection agency. |
| your customers a ring. Try calling your customers | | | | Set up an Alert System |
| to find out why they haven't paid their bill. Many | | | | Since the longer payments are overdue the less |
| times when the customer realizes that their lack | | | | you are likely to collect, it's critical to set up some |
| of payment is affecting a person, not just a | | | | type of alert system to let you and your |
| faceless business, they are likely to make their | | | | associates know when an account is overdue. |
| payment. Unfortunately, making calls doesn't | | | | Whether this is by constantly updating your Excel |
| always turn out positive and you'll need to take | | | | sheet or by using more sophisticated software, |
| further measures like hiring a collection agency. | | | | having some sort of alert system is a critical |
| Send Ten Day Demand Letters | | | | piece of running a profitable business. Once a |
| In the collection business, it's critical to move | | | | payment becomes a certain number of days |
| quickly. According to collection agency statistics, | | | | overdue, get in the habit of making a phone call |
| once an account becomes 3 months past due, | | | | or sending a demand letter and you'll be surprised |
| you will most likely collect only 73 cents of every | | | | at how much less revenue you'll lose as a result |
| dollar. After one year, you're likely to collect only | | | | of deadbeat clients. |