Businesses lose billions of dollars each year due to delinquent accounts. A third party collection agency can be effective in recovering lost revenue and profits. Collection industry studies show that engaging a debt collection agency promptly helps you liquidate more accounts before they age past the point of recovery. Generally, successful account recovery occurs when accounts are placed within a 30-90 day window. Proven collection strategies ensure your delinquent customer knows you are serious about collecting and improves motivation to satisfy the account.
DAVIS AND GOLDMARK can help reduce the frustration of debt collections by pursuing your delinquent customer while you manage your core business. We are objective in the collection process, which often results in faster and larger collections, and are successful at negotiating settlements and payment plans. We follow strict professional and ethical guidelines consistent with the Fair Debt Collections Practices Act (FDCPA). Collection strategies vary by portfolio and specific needs, but typically begin with collection demand letters and phone calls and may escalate to our legal department for review and attorney referral. Not all industries liquidate in the same manner. We offer a variety of services, at standard and specialty rates, to be the most effective for you.
The more delinquent your accounts become, the less collectible they are. At 90 days delinquent, depreciation accelerates, and by 6 months, only 30% percent will likely be collected. This rapid loss in value is called Accounts Receivable Depreciation, the silent destroyer of profit margin.
Forwarding delinquent accounts to DAVIS AND GOLDMARK within 90 days can be a key component of your overall accounts receivable management plan. Failure to timely place accounts in collections may stem from unfamiliarity with the collection industry, fear of damaging relationships, doubt that accounts can be successfully transferred and managed, or reluctance to pay agency commissions. But waiting longer simply means collecting less, or worse, rendering accounts uncollectible leading to writing off bad debt year after year.