Melton Norcross and Associates encourages our clients to turn over collection accounts as quickly as possible, and for good reason: Obviously, the older a claim becomes the less collectable it becomes. Accounts that are 90-days past due are more collectible than accounts that are 6-months past due.
So, in the process of collection, don’t sit on those receivables, but turn them over to Melton Norcross, sooner rather than later. Here are seven reasons why:
1. Slippery debtors. Businesses, bank accounts, people, jobs, etc. can change quickly — and without notice.
2. Lost evidence. As time passes, you may discover data, documents, witnesses, employees, transaction details, and other things fading or disappearing.
3. Statutes of limitations. Your claim may become non-collectable sooner than you thought.
4. Bankruptcy. It doesn’t take much for a debtor to discharge your claim via bankruptcy.
5. Unexpected events. A surprise can derail a claim, preventing you from collecting.
6. Shorter collection times. Know that your industry requires them.
7. Other creditors. Move too slowly and you may lose out to more aggressive creditors.
If you have a business client that is 90-days past due paying their invoice, now is the time to begin the collections process. If you would like us to manage the collections process for you, please call us at 1-866-323-7043 or click here to email us.
David M. Roche
Melton Norcross and Associates, LLC