Time is the greatest deteriorating factor on the collectability of
an account
You will never have enough resources to collect all of your
delinquencies
Implement an early referral or cure program to maximize your internal and
external recoveries
Early referral programs, in addition to collecting, help you identify and
single out no-pays from slow-pays and treat each accordingly
Accounts 60 days or less of age are more than 80 percent collectable
Accounts more than 90 days of age are typically less than 50 percent
collectable (internally)
Working accounts less than 60 days delinquent will typically maximize your
internal yield and recovery. Use a third party for those more than 60 to 90 days
delinquent and focus internal efforts on the easier, slow-pay accounts
Develop and use a "60-Day Pursuit Program"
Concentrate all internal efforts into the time frame where they
are most profitable
Start on your delinquents early — contact them often in the
60-day period
Become progressively stronger as the 60 days go by
Elements to use in the "60-Day Pursuit Program":
Copies of statements and invoices
Previous letters
Information obtained from a sales visit
Information obtained from phone calls
Suspension of credit
After 60 to 90 days, your options are:
Continue to pursue internally with reduced results
