Skip the Pain of Collecting unpaid Invoices with some tips from the experts.
Typically you have a client/customer/patient who hasn’t paid their invoice.
#1 you send them a reminder
#3 you send them a demand letter
#4 you should turn it over to a collection agency
If you don’t turn it over to a collection agency the longer the debt goes the less likely you are going to be collect on the debt.
Does a demand letter work?
Sometimes it will but many times they ignore that just like they did the reminder or Balance Due letter.
The reality: Do you know the laws of collecting in your state? Are you taking a chance of crossing the line with collections by doing it yourself? Let’s face it your employees were not trained to take care of collections. Their brilliance is in the product or services your business offers. Why waste their talents while taking a chance on being out of compliance with the law? You could end up paying much more to collect an unpaid invoice than it is worth trying to do it yourself.
You can always hire a lawyer to send your letters yet that is the extent of what they do, they will not be following up with your customers/clients/patients.
When Hiring a Collection Agency there are several questions you need to ask:
- What is their success rate
- Do you have a specific contact person at the agency
- What fees do they charge to collect on your behalf
- What rating do they have with the BBB
Fee structures can be very different. Typically you want to look for one that has no upfront fees and they only get paid when they recover the unpaid debt for you. This will assure you the fact they are doing their job because they don’t’ get paid unless you do.
MCA is a third party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect! Why not try and re-coop some of your past due accounts with no out of pocket expense?