Skip to content

When is it Time to Hire a Debt Collector?

If you run a business, you may end up asking yourself: when is it time to hire a debt collector? Whether you have many debtors or a few, the simple answer is sooner than later. In fact, statistics show that the longer you wait to call a debt collection agency, the less likely you will get your money back. More specifically, your chances of collecting a debt go down dramatically after just 90 days.

While there are many ways to go about sending invoices for payment reminders, there isn’t much you can do about delinquent debtors. As a tip, it’s best to start acting as soon as a payment becomes overdue. Contact the delinquent customer and request payment the day after an overdue payment. If they don’t respond after about 30 days of this reminder, it’s highly recommended you start looking for a debt collector.

Timing is Everything

If you’re thinking that 31 days is too soon to look for a debt collector, you may want to think otherwise. When it comes to collecting debt, timing is everything. In fact, timing is so critical that waiting even a week too long can determine whether or not you get your money back.

At first, you may give the delinquent customer 30 days to make a payment. However, it’s best not to wait longer than that allotted time frame. Once 30 days have passed without a payment, it’s time to take the debt seriously.

Things to Consider When Collecting Debt

Before acting to collect a debt, consider the following:

  • How much the debtor owes you
  • Your relationship to the debtor
  • How important to your business the debt is

These things matter when it comes to hiring a collection agency to recover your debt.

Related: 8 Powerful Credit Control Tips for Your Business

The Amount of the Debt

When considering a collection agency, the amount of debt owed matters. For instance, if a delinquent customer owes you $10,000, it would be in your best interest to hire a collection agency. The more money you’re owed, the more swiftly you must act to recover what you can. 

However, every business is different. For small businesses, even $500 is enough to act swiftly and with professional help. Ultimately, the decision is up to you and the best interest of your business.

Your Relationship to the Debtor

As a business, it’s extremely important to maintain a good reputation with your customers. This also applies to former or delinquent customers. An important thing to consider when hiring a collection agency is your relationship to the debtor, and their relationship with your business.

For instance, if your business has had a profitable and long-term relationship with the customer and their delinquency is new, you may want to find the reason for the overdue account. It could be due to medical or economic reasons, or something else out of their control. As a business, maintaining customer relationships is extremely important. If the debtor had a good reputation with your business up until this point, immediately hiring a collection agency may not need to be your first choice. However, after 90 days, a collection agency may be the right option.

However, if the debtor is someone you don’t want to do business with, you should hire a collection agency as soon as possible.

How Important to Your Business the Debt Is

If collecting the debt is of vital importance to your business, don’t wait. The sooner you hire a professional collection agency, the more likely you’ll get your money back. Once you’ve established the amount of debt owed and the relationship to the customer, debt collection is the next step.

Many businesses make the mistake of attempting to collect debt themselves, which drains resources. This is especially true for small to medium-sized businesses lacking proper collection staff. Instead of using your company’s resources to collect debt, hiring a professional debt collector will save time and money—literally.

Related: 6 Debt Collector Myths Debunked

Two Huge Indicators to Hire a Debt Collector Right Away

There are two huge indicators that tell you a debt collector is the only option: tricky or elusive accounts, and disappearing altogether. If any of these are the case, hiring a debt collection agency is the best and only choice if you want to get your money back.

Debt collectors are specifically trained to track down delinquent debtors who avoid paying. They know the right tools and methods to locate elusive customers and communicate with them in a way that encourages them to pay. Debt collectors apply the right pressure at the right time to get delinquent customers to pay up, and statistics show they’re far more effective than credit companies.

Southwest Recovery Services

Regardless of all things to consider, timing is by far the most important factor in collections. When you hire a collection agency sooner than later, you’re much more likely to get your money back.

Southwest Recovery Services is a collection agency that prioritizes ethics. We value your customer relationships and strive to collect your debt with kindness and professionalism. Our trained agents have decades of experience collecting debt for business, healthcare, utility, and real estate. We understand that each case is different, and we approach every one with careful consideration and powerful strategy.

For information on how to collect a debt today, contact us.

Have A Question?

Get In Touch

Southwest Recovery Services is a national collection agency with offices in Texas, Oklahoma, Missouri, Ohio, Florida and Georgia.

Payment Processing

  • Online Payment Terms and Conditions

    Welcome to the Southwest Recovery Services LLC payment processing site. Please read and agree to the following online payment terms and conditions, website Terms of Service, and Refund Policy prior to agreeing and completing your online payment.

    *** NOTICE ***

    This is an attempt to collect a debt and any information obtained will be used for that purpose. This communication is from a debt collector. If you have any questions or would like to talk to a live Collections Specialist, please call us at (866) 558-3328 during standard business hours: Monday thru Friday 8am-6pm CST. You can also mail your payment directly to Southwest Recovery Services LLC, 16200 Addison Road Suite 260, AddisonTX 75001.

    Credit Card Transaction

    By submitting payment information through this Service you agree to the terms and conditions of this Agreement and any documents incorporated by reference. You further agree that this User Agreement forms a legally binding contract between you and Southwest Recovery Services Inc. and that this Agreement constitutes "a writing signed by You" under any applicable law or regulation. Any rights not expressly granted herein are reserved by Southwest Recovery Services Inc.. By clicking on the "I Agree" button and by clicking on the “click here to pay by credit card” button, you are accepting these terms and the stated fees for using this service.

    IMPORTANT:  Please make sure that you have correctly inputted your account number and creditor’s name in the payment form. This information can be found on your bill. For assistance, please contact us at (866) 558-3328. 

    This site provides a secure payment portal for making online payments. Please ensure that you are paying the correct party and that you have a valid account number received from us.

    If you do not know your account number, please do not make a payment through this web site at this time. Instead, please Contact Us to obtain your account number before returning to make the payment. Without the account number we cannot credit your account with the payment you make on this site, which would result in a significant delay in processing of your payment.

    • This is a web site of a collection agency.
    • This is an attempt to collect a debt.
    • Any information obtained will be used for that purpose.

    Question? Contact Us:

Make A Payment