When you run a business you take every precaution you can to assure clients are reliable. After all, you can’t really afford to provide a service without pay– especially in this economy! You run credit checks, review references, evaluate their payment history on larger purchases in the past. Once you’re confident they’re reliable you provide them with a product or service. This can be anything from utilities to an apartment lease.
Sometimes, someone sneaks through though. Maybe at first, paying their bill just slipped their mind and it comes in a couple of days late. Large businesses might not even notice. Smaller entities may feel a bit of strain if their own bills come due during this time. Next thing you know they’ve gotten way too lax and are months behind on payments. You’ve tried calling, sending invoices, and barring them from the premises; but they’re still not paying up. What can you do? Well, if your customers are exhibiting any of the following signs it may be time to contact the recovery agents at SWR to recover the debt for you.
1. They’re Late. Really Late.
A general rule of thumb is that if a balance is more than 90 days past due you need to escalate collection efforts. At this point, it’s important to hire a collection agency, because after this period of time it’s significantly more difficult to collect the bill. The statute of limitations on debt collection in Texas is also quite short. Just 4 years. This means if you delay recovery efforts, chances are you’ll just end up writing off the balance. We guarantee losing out on money for this reason will leave a bitter taste in your mouth, especially after wasting your time and additional money trying to collect on it.
2. The Debtor Disappeared
Sometimes, it may seem as though the debtor dropped off the face of the planet. Maybe they’re working for cash to avoid bank account garnishment, they changed their phone number, or moved away without telling a soul. Regardless, we have methods of tracking down non-paying clients and encouraging them to pay up. It doesn’t matter if they didn’t share their new address or contact information with you, because we have the equipment and technology to find them.
3. Checks are Bouncing
People know what’s in their bank account. They’re especially aware when there’s nothing in their account. When checks repeatedly bounce, it shows they have no intention of paying and are just trying to get you off their backs temporarily. Don’t let this continue.
4. It’s Taking time From Your Business
When you’re running a business you’ll have a lot of work to do on the operations side of things. When you spend a lot of time tracking down unpaying customers the needs of the paying ones may fall to the side. It can also hinder your expansion efforts. You should really be spending your time on what you’re passionate about, not the nitty-gritty.
5. You’re Late on Your Bills
If you don’t have sufficient cash flow to pay for bills, payroll, and equipment that’s a big problem. The simple fact is that clients need to pay for you to manage expenses and continue offering services.
Southwest Recovery Services Can Help
With SWR you can have your cake and eat it too. Keep your time. Get your money. We are trackers, negotiators, and closers. SWR agents will find clients and set up a payment plan to make sure your accounts come due. We’re so confident in our debt recovery abilities that we’ll never request upfront fees to refer an account to collections. We just keep a percentage of the amount we collect for you. When you’re ready to outsource collections efforts and focus on your business contact us.