Listen to 300+ podcasts by best-selling authors, published Wednesday, 4pm EST!

Debt Collecting Advice for Small Business Owners

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Choosing Collection Agencies for Small Businesses and other Collection Agency topics.

How should small businesses utilize debt collection agencies?

Debt Collecting Advice for Small Business Owners

If you have not set up a collection system we suggest you use the following guidelines for your business:

*Debts up to $100.00 - Attempt collection 5 to 6 times using in-house collection letters. Then either turn the account over to a collection agency or write it off.
*Debts from $100.00 - $1,000.00 - Attempt collection 3 times using in-house debt collection letters, then turn them over to a collection agency.
*Over $1,000.00 - Invoice 3 times, then turn it over to a collection agency. In most cases a debt collection agency should be used to attempt collection of the debt. Next the collection agency can skip trace the debtor or do an asset search to find out if debtor(s) has(have) any assets sufficient to make suing worthwhile. After all avenues have been explored it may be time to consult with an attorney about suing. Remember, it does no good to go to court and win a judgment if the debtor(s) have no the assets to pay the debt.
*Lastly, if all else fails report the deliquent account to the credit bureau.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Collection Agency Tip Site? Request a Tip Now!


Guru Spotlight
Barbara Gibson