As a business owner, it’s your responsibility to ensure that customers are following through on the payments that are expected of them. Whether you own a small business or a large corporation, the entire purpose of your business is to profit. When customers do not pay their bills — whether it’s a one-time expense or payment for a monthly service — it’s easy for them to pass this off as a one-time issue.
As expert debt collectors with years of experience, however, we can confidently say that first-time offenders often become routine problems. And, these problems are rarely solved by a strongly worded letter. Read on to learn about the most common signs that your business needs a debt collector.
1. You Have Accounts that are 90 Days Overdue
Business owners that serve lots of clients encounter several different types of business owners. Some customers routinely pay in advance, others attempt to drag out payments, and others still consistently pay long after the payment is due. If your payment-punctual customers are now 90 days past due for a payment, then this is a problem.
Customers that try to assure you that they will pay — and consistently fail to — are wasting your time and energy. Wasting your own time and energy to reason with these companies will not do any good. Rather than continue to prolong this relationship, it’s best to call a collections agency.
2. Your Calls Are Being Ignored
For business owners, customers who refuse to answer phone calls are the biggest source of frustration. At first, it may seem that the client is innocently preoccupied. Chances are, if the problem persists, these clients are dodging your calls for a reason.
If clients refuse to take your phone calls — even after calling during different days and times — then this is a definite indication there is a problem. Rather than wasting your valuable time and resources pursuing clients with phone calls, contact a qualified collections agency. With specialized resources and an extensive network, collections professionals can implement effective collection techniques.
3. Erratic Purchasing from Regular Customers
Vendors that regularly sell products in bulk experience this difficulty most often. It’s somewhat common for these companies to develop lasting relationships with buyers, where debts accumulate over a period of time. Then, at the end of this period, buyers pay the debt. Or they don’t. With this rapport, it makes sense to allow companies to occasionally purchase products in bulk, and pay later on. When this happens, though, it should be a red flag for vendors.
This could be a sign that the retailer is underperforming, and is attempting to reach this previous potential. This is especially true if other retailers in the same industry are not purchasing at this rate (which would indicate high demand).
4. Regular Accounts Have Stopped Purchasing
For vendors, a complete lack of spending should be equally concerning. While over-spending may indicate that a retailer is attempting to earn quick profits, a lack of spending could signal a lack of money. It could also mean that the retailer has no intention of ever paying, as they no longer need your resources. Even if the customer’s account is not overdue, you should pay close attention to a sudden lack of spending. A collections agency will be instrumental in helping you to obtain these payments you have earned.
5. Too Many Changes in Payment Method
Making payments with multiple accounts is common, and may even signify growth. But when a customer pays with a new account each payment period, there is cause for concern.
Not only does this demonstrate a lack of finances, but paying with varying bank accounts shows a lack of accountability. It’s possible that they intend to abandon that account altogether, or take another duplicitous route. Either way, it’s best to contact a collections agency early on. Qualified professionals can ensure that these problems — and others — do not lead to unsolvable issues.
6. There is a History of Problems
When customers raise numerous issues with your small business throughout your relationship, the likelihood of simple payment decreases. Incidental issues — such as incorrect invoices, discount discrepancies, and more — can leave a sour taste in a customer’s mouth.
While the occasional negative relationship is inevitable, customers involved in negative relationships are less likely to pay. Even if these arguments may be settled through compromise, it’s never wise to fully put aside your right to collect. Instead, contact a collections agency, so that you can receive a fair amount.
Contact a Collections Agency Today!
As a collections agency, we specialize in helping small businesses receive money they have earned. Whether your debt has accumulated over several months or several years, our collection agency can help you to recover missing funds. Regardless of the nature of the debt, our network of qualified agents and lawyers can acquire the missing funds. Contact us to learn more!