Savvy Business Owners Recognize the Importance of Being Proactive
In a recent article published by the CCAA titled “Collection Trends”, Emil Hartleb, CCAA Executive Director, was quoted as saying that the longer a creditor holds on to a delinquent account the probabilities of collection of that account are greatly reduced. A chart provided in the article shows that this percentage drops from 94.9% probability of collection when action is taken to collect at the point when the receivable becomes due to a meager 9.3% probability of collection if that same receivable is housed for two years with no collection action.
One of the most basic business principles states that in order to remain viable, a business must constantly expand their customer base. Companies will branch out into new markets, increase market share with existing customers or find new applications for their products and services - all in the quest to increase sales revenue. Nothing reinforces this more than the reality that no matter how well serviced and maintained, the largest customer will eventually leave and need to be replaced. So, after expensive advertising and marketing campaigns, networking and generally doing everything possible to get that new customer to call or walk through the door, the need to confirm that this is indeed a customer and not a debtor becomes all that more important.
So you have made the decision to use a collection agency. You have picked one from the long list of daily messages and calls you receive from the many sales personnel that call you and you’re about ready to begin placing accounts. And now you are asking yourself what things you should consider when deciding who to place.
Are you a whiz at using the Online Client Portal (OCP)? If not, or even if you do happen to be, the OCP Tutorial offers a complete guide to using the OCP and is handy to keep as a reference point even after you’re familiar with the online tool.