“Time is now” As used for debt collection, the term has gravitas and practical application. At the customer’s demand, we embrace their delay tactics for “a bit extra time” to settle a past due invoice.

We don’t want to be desperate, and we want to be helpful and kind. These are all good impulses but what kind of damage is there in waiting? Turns out, a lot of it. Good businesses recognize that a debt is an asset. While the expenses of your operations is constant, the value and chances of recovering an uncollected debt is diminishing over time.

Collectability of Delinquent Commercial Debts At Time Intervals After The Due Date | Credits to: Credit Management Company (CMC)

Time is stagnant but the debt is withering away. The longer it takes to collect, the harder it takes to collect. The more time it takes, the less likely you are to be able to collect the entire amount of the unpaid invoice.

If your gross margin is less than 30%, you have less than a month to make your compilation before it begins to cost you money. It’s a harsh loop that places pressure on you, so you’re now facing a deficit that impacts your operations.

Writing off poor debt is part of a corporate strategy. You’re already as competitive as you should be. Increasing price to compensate for losses, or cutting costs to open your margins may affect your product or services.



As soon as the account is due, please call the customer to check in and inform them of the due date. If payment is late, offer a final notice and a new firm payment deadline.

If the date passes by without payment, it’s time to contact a professional debt collection firm like The Baker Group of Companies.

Your payment strategy is not a poetry that evokes emotion. It is an agreement on payment terms and, if necessary, collections. Well-written terms say all you ever need to do. It’s a great deal of business, and it will save you thousands of dollars in lost time.

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