C2C Resources Releases Guide to Collecting Past Due Debts

Atlanta, GA (PRWEB) April 02, 2015

As a leading debt collection agency, C2C Resources has dealt with problem customers for clients across North America. Through their many years of experience, C2C has learned how to deal with many types of customers, excuses, and tactics used to avoid paying debts.

C2C Resources has compiled a step by step guide for those attempting to collect on past due debts, below.

1.    Timing: If an account is more than 60 days overdue, a company will have about an 85% chance of collecting. However, after 90 days that number drops to 70%, and after 6 months the chances for recovery drop to about 57%. These numbers simply show that the problem only gets worse if avoided. As soon as a customer is late on their invoice, attempts must be made immediately to collect.

2.    Communication: There are many reasons why a customer may not be paying you on time. An initial phone call to find out why they have not paid may reveal they simply forgot. Or perhaps they are short on cash at the moment and need to pay debts according to importance or amount. If that is the case, offer to set up a payment plan – this simple method will often remedy late payments, while also strengthening the customer relationship.

3.    Visit: In the past, creditors have sent letters to those who were past due on debts. Perhaps those letters were successful back then, but a more personal touch is most effective these days. If the customer is local, stop by their business unannounced to speak with their accounts payable director and offer to wait until they are free to speak.

4.    Settling: If communication and in-person visits don’t work, try to settle on a percentage of the total invoice. Getting 80% of an invoice that will cover expenses is better than no payment at all. If the debtor’s situation is worse than expected, get whatever they can give – anything is better than $ 0.

5.    Demand: If attempting to personally collect on a debt does not work, sending out a demand letter can motivate customers to pay. Send a letter stating that if the customer does not pay the invoice by specific date, lawyers and/or collection agencies will have to get involved. This may motivate the customer to finally pay due to fear of more costs incurred from other parties, etc.

6.    Outsource: If the customer still refuses to pay, call in the experts. Collection agencies can take the stress, time, and hassle of collecting debts away from hectic business owners who have more important things to do, like running a business. As a last resort, creditors can even take the matter to the courts. Taking these problems to court can get expensive, but if all else fails and the invoice is worth it, the courts can provide much needed legal clout and enforcement.

For more information on collecting past due debts, please visit the C2C Resources blog here

About C2C Resources

C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 25,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.C2Cs powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection. For more information, please visit http://www.c2cresources.com.

Vocus©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Leave a Reply