| Oftentimes, business spend almost 100% of their | | | | every dollar owed. The most efficient way to |
| time focusing on how to get new business in the | | | | start the collection process is to send a 10 day |
| door but have no specific process for collecting on | | | | demand letter. Aguirre, Aikman, and Brown |
| past due accounts. Business owners might be | | | | collection agency offers a free 10 day demand |
| surprised at how much revenue is waiting to be | | | | letter which is sent on official collection agency |
| collected in the form of past due accounts. With | | | | letterhead after you fill out a simple online form. |
| these 5 steps, you'll be on your way to | | | | Through AABUSA, printing and mailing are all free |
| recovering a great deal of found money: | | | | of charge. Oftentimes, a 10 day demand letter |
| Take Inventory The first step is to find out just | | | | from a collection agency is enough to get a |
| how much revenue you're missing from past due | | | | customer to pay. |
| accounts. Flag any accounts that are more than | | | | Contact a Collection Agency Just like you are a |
| 30 days over due along with the date that the | | | | specialist in your field, a collection agency knows |
| last payment was made. Enter the customer's | | | | what works when it comes to collecting overdue |
| name in column A and the date of the last | | | | payments. There are very specific rules and |
| payment in column B. Label column C "days | | | | regulations around the permissible methods of |
| overdue and insert the Excel formula | | | | contacting a debtor to collect on a past due |
| =TODAY()-B2, which will return the exact number | | | | balance. A collection agency stays up to date on |
| of days it has been since each customer made a | | | | consumer rights laws to keep them and you out |
| payment. This free and simple organizational tool | | | | of trouble while still achieving the desired results. |
| will help you prioritize your collection efforts. | | | | No debtor likes the idea of owing money to a |
| Call the Customer You don't have to be a | | | | collection agency and debtors are more likely to |
| collection agency to give your customers a ring. | | | | pay once contacted by a collection agency. |
| Try calling your customers to find out why they | | | | Set up an Alert System Since the longer |
| haven't paid their bill. Many times when the | | | | payments are overdue the less you are likely to |
| customer realizes that their lack of payment is | | | | collect, it's critical to set up some type of alert |
| affecting a person, not just a faceless business, | | | | system to let you and your associates know |
| they are likely to make their payment. | | | | when an account is overdue. Whether this is by |
| Unfortunately, making calls doesn't always turn | | | | constantly updating your Excel sheet or by using |
| out positive and you'll need to take further | | | | more sophisticated software, having some sort of |
| measures like hiring a collection agency. | | | | alert system is a critical piece of running a |
| Send Ten Day Demand Letters In the collection | | | | profitable business. Once a payment becomes a |
| business, it's critical to move quickly. According to | | | | certain number of days overdue, get in the habit |
| collection agency statistics, once an account | | | | of making a phone call or sending a demand letter |
| becomes 3 months past due, you will most likely | | | | and you'll be surprised at how much less revenue |
| collect only 73 cents of every dollar. After one | | | | you'll lose as a result of deadbeat clients. |
| year, you're likely to collect only 25 cents of | | | | |