How Long Can a Collection Agency Attempt to Collect Business Debts?

If your business has sent bad debt accounts off to a collections agency, you likely have questions about recovering that debt.  Typically, commercial collections agencies only charge a fee if they're able to collect.  The agency should also be transparent about the collections process and the documentation along the way.  But you may also be wondering how long they'll work on your behalf before you take the case to court.

How Long Can a Collection Agency Attempt to Collect Business Debts?

 

What's the Best Time To Send an Invoice to Third Party Collections?

Chasing down an unpaid invoice can take away time and resources that could be better served elsewhere in your business. It's important to understand when and how to follow-up on invoices. Obviously you don't want to appear too needy but you don't want your clients getting away with paying late or not at all, either.  And when should you get help from a professional collections service?

When exactly is the best time to send an invoice to third party collections?

B2B Debt Collections in 1...2...3

If you've agreed to contract with another business, you are providing valuable products and services that benefit their company's success. Likewise, their payment to your business is cash flow that keeps your company running smoothly.  When your business fulfills its obligation but your client doesn't pay, it could sour the relationship and put your cash flow at risk. There are steps that your business can take to ensure payment prior to taking legal action. Or you can work with an professional agency that takes these steps with you. 

Get yourself a partner who does accounts receivable, bad debt collection and helps with litigation. B2B Debt Collections in 1...2...3.

Debt Collections for SaaS Clients

The internet allows for businesses to sell the use of software (and hardware) and revenue is collected either yearly or monthly as a subscription service. The as-a-service or subscription business model is sustainable as long as payments are received. Because client retention is very important to this business model, debt collections must be handled with business relationships in mind.

Here are four things to consider when sending SaaS clients to debt collections.

Does Your B2B Debt Collections Company Offer Brand Protection?

In the age of social media and rapid-fire news stories, it's important for businesses to consider their brand reputation.  If your accounting team outsources its bad debt or unpaid receivables to a collections agency, it's also important to protect your brand.  Quite simply, a negative experience with a collections company could sour business relationships and your branding. 

Does your debt collections company offer brand protection?

When Good Clients Go Bad: How to Select the Best B2B Collections Agency

Just like when any relationship turns sour, you're left dealing with the things you couldn't agree on. Unfortunately, when your good business clients refuse to pay or communicate, it may be time to bring in a mediator to ensure your assets are protected and your agreement holds up. Whether you've decided to escalate their continued late payments, write off their account as bad debt or pursue litigation, you don't have to do it alone. 

When good clients go bad, here's what to look for in the best B2B collections agency.

What is B2B Accounts Receivable and Collections?

No matter the type or size of your business, accounts receivable and collections is a valuable part of your operations and cash flow. B2B (business-to-business) accounts receivable and collections, however, is very different than B2C (business-to-consumer) for a number of reasons.  In this post, we will uncover the differences between these two types of businesses and how their receivables and collections processes are different. 

What is B2B accounts receivable and collections?

Can a Business Be Sent to Collections?

Owning a small or medium business can be especially frustrating when your clients are paying late or not at all. It's good to note that how you respond to these situations will affect the success of the debt collections and if you can retain the client as a customer. In this post, we will offer tips to ensuring your invoices are paid on time and we will share how and when you should send a business to collections. 

Yes, a business can be sent to collections. 

Read more to learn how.

7 Reasons Businesses Turn to Third Party Collections

If your business works with another business, you or your accounts receivable department likely has some idea of the efforts to collect on past due accounts. Reasons for late payments could be as simple as a misplaced invoice or as challenging as being affected by a global pandemic.  Whatever the reason, positive cash flow and working capital is important to keep the lights on and your employees paid. How long will your A/R team attempt to collect on accounts before they give up?  Does your accounts receivable team know when to ask for professional help?

Here are seven reasons small to enterprise businesses turn to third party collections.

How to Ask for Payment During COVID-19

When the Cheesecake Factory and other retailers have announced that they will not pay rent, it can give pause to small and growing businesses who need their invoices paid. During such an unprecedented time, most everyone is feeling the panic and stress about potential loss of cash flow. It doesn't seem like a good time to ask for payment from clients or customers who may be facing their own crises. 

Is there a good way to ask for payment during the COVID-19 pandemic?