Receivable Recovery Process

Most of us have found ourselves in debt at some time. The worry and stress can be insurmountable, and often leads to additional indebtedness. Collecting aged receivables requires empathy, tact and knowledge of available tools and resources for recovery.  

We believe most indifferences and the resulting collection issues can be resolved with open communication and a sincere attempt to fulfill one’s financial obligations. This said, each case is unique and requires an assessment for the best course of action.

Late-paying customers typically fit into three categories:

1. Those who want to pay, but cannot pay on time due to current financial strains.
2. Customers who can pay, but juggle payments to manage cash flow issues.
3. Customers who can pay, but instead try to take advantage of the creditor for their own financial gain.

For customers within the first two categories there are simple tactics and common-sense tips for collecting money owed to you. For customers who have little to no intention on paying, even though they have the ability to do so, there are few options available outside of the legal system for collecting your aged accounts.

So, the first place to start is determining which category your customer falls into:

• Consider timeliness of former payments from them, if applicable. When was the last time you did business with them? Have they historically paid on time? Perhaps a temporary setback?
• Are they a referral account from another customer?
• Do you have accurate contact information and are the invoices/statements being received?
• Have your services and products been clearly itemized on invoices or statements?

Many collection issues can be resolved with a letter campaign from a source the debtor believes credible and has leverage in their ability to collect the debt. Other collection efforts require filing a lawsuit, at which time the debtor may offer to settle and avoid the embarrassment and inconvenience of going before a judge. If litigation is required, the judgment and leading circumstances determine the best course of collection action moving forward.

A judgment is only as good as the effort expended in execution of legal remedies for recovery.