As an account ages, the chances of collecting on it decrease dramatically. It is expensive to carry debt that you may not be able to collect using methods at your disposal. It is often a better use of your companies time and your time as well as your employees time and resources to concentrate on other aspects of your business.
This is why you will see that many agencies charge more for older accounts that are placed with them. The are much harder to collect.
A professional collection agency can assist you in collecting on accounts that remain past due. Collectors have a vast knowledge of collection techniques, technology and compliance issues. Using a professional collection agency can save you time and money and yield you better results than you can yourself at times.
When accounts reach 90-120 days you may want to consider this option. Just remember, the sooner you place accounts you have not been able to collect the better your chances are of recovery of that money.
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