Home | Forum | Tell a Friend | Text Size | Search | Member Area
 Join Us
Gain immediate access to all our articles, features, how-to's, discussion group, archives plus. Click here for details.

 About this Site
About this Site
Collection Gurus
Sample Articles
Subscribe Today
Feature Articles
Collection Management
Collection Stats
Collection Tips
Construction Credit
Consumer Credit Mgmt
Credit Cards
Credit Mgr's Letter
Credit Procedures
Download Library
Legal Issues
Member Profiles
Most Popular
Outside the Box
Press Releases
Site Map
Telephone Collection
Tip of the Week
Subscribe to our RSS Feed
Affiliate Program
Article Index
Contact Us
Tell a Friend
Text Size
Your Account
Books & Special Reports
Product Department
Our Guarantee
Privacy Policy
Terms of Use

home | Negotiations | Knowing When to Say When: 25 Signs Y . . .

Knowing When to Say When: 25 Signs You Should Place an Account For Collection

Printer-Friendly Format

There is no simple answer to when an account should be placed for collection, but the more of the following statements that are true, the more appropriate it is to forward the account quickly to a third party:

  • One or more of the customer's payment checks to you bounce.
  • The bounced check(s) do not clear when they are redeposited.
  • The account is 90 days or more past due with you.
  • You learn tax liens have been placed on the business.
  • You learn the debtor is bouncing checks to other creditors.
  • The debtor is unconcerned when you threaten to place the account for collection.
  • Mail is being returned by the post office.
  • The customer's telephone is disconnected.
  • The debtor is now using an answering service.
  • The debtor is always out and does not return your calls.
  • Your debtor refuses to make a reasonable commitment for payment.
  • Every conversation turns into an argument.
  • The debtor curses at you or hangs up in the middle of a discussion.
  • The debtor promises a certain amount will be paid, but instead the debtor pays significantly less.
  • The debtor breaks a second commitment for payment.
  • You reach an agreement, but the debtor refuses to put anything in writing.
  • Long after a payout arrangement is made, the debtor decides to try to renegotiate the deal.
  • The debtor hires a consultant or work-out specialist.
  • You threaten to sue over an unpaid bill and the debtor tells you to "get in line."
  • The debtor company is for sale.
  • Other creditors are holding orders, or have placed the debtor for collection.
  • Employee turnover within the debtor organization is high.
  • Your company is asked to release its perfected security interest, or the business owner's personal guaranty.
  • You learn the debtor is looking for a new bank.
  • The debtor company offers to pay you from the proceeds of a loan it has applied for.

No matter how polished and professional your collection techniques may be, certain debtors will be unable or unwilling to pay your company. There is no set formula for when to refer an account like this to a third party, but the key is to turn an account over when you feel you are no longer effective in collecting the debt. Unfortunately, often the debtor doesn't believe you're serious until the account is in the hands of a third party.

Editor's Note: This article originally appeared in the Credit & Collection Manager's Letter.

Printer-Friendly Format
·  The Debtor Won't Pay Voluntarily -- So Now What Happens? A Look at the Suit Decision and Process
·  "Know Thy Customer"
·  Managing an Uncooperative Account - Ten Common Mistakes You'll Want to Avoid
·  Collection Management--Leaving Nothing to Chance
·  Collection Agency Fees
·  9 Point Checklist For Your Final Demand Letters
·  10 Ways to Have a Positive Impact in a Bankruptcy Case - Part 1
·  Top 10 signs of Impending Bankruptcy
·  Checklist: 16 Services You Should Demand of An Outside Agency

 Tip of the Week
Sign up here
for our Free
Tip of the Week! 
Privacy Notice: We will never share your email with anyone.
 Discussion Forum
Recent Forum Posts
• good interview Qs for hiring collectors?
• Metrics for in-house Collectors?
• Caller ID in collections?
• Missing one of the "Seven Key Traits of Top Collectors" - Is that an Achilles' Heal for Collectors?
• Receivable Meeting format?
• When to place accounts for collection?
• Collection Settlements
Here's what our members are saying ...
"What a great resource! This is the perfect place to refer our customers who have collection problems so they can improve their collections. I figure if we can help them collect faster, they can pay us faster and order more product."

William C. Edgar, CCE
Director of Credit
Zippo Manufacturing

"I can't believe I didn't find out about your site sooner."

"It was exactly what I was looking for."
Jim P.
Hot Springs, AR

"The first item I found in your download library made my subscription worthwhile. I'm definitely renewing!"
John A.
Kerrville, TX

"Your site saved the day for me. The video tutorial helped me quickly and solve a problem I've been struggling with for a year.
Robert K.
London, UK

"I can't say enough about how valuable your site has been to our business. The articles and especially the free downloads really are great."
Victor O.
Seattle, WA