PrintMost businesses follow the 90-day rule when it comes delinquent customers: After an account is 90 days past due, they call in a collection agency.
Turning an account over to a collection agency shouldn't always be a last resort. In fact, some accounts require immediate attention. When you see the following warning signs, consider calling a collection agency right away.
- A customer continually ignores your collection letters and phone calls.
- A customer tells you they are unable to pay an invoice and will not work with you to develop a payment schedule.
- You can no longer contact a customer — they've moved and left no forwarding address, they've gone out of business, or their phones are disconnected.
- A customer has promised to pay on several occasions but has not sent a check.
- A customer continues to delay payment by using diversionary tactics. They may claim they never received your invoice or shipment, tell you they don't agree with your payment terms and conditions, or use other excuses to avoid paying altogether.
