Importance of Collection Departments

Granted, sales are vital to any business, but if you make a sale and don’t get paid for it, did you really sell anything?

An important fact that often gets overlooked is that a sale is only a sale once it is paid for.

In today’s economy, the majority of business is done on credit, and thus, unpaid commercial debt is inevitable.

Without payment for goods and/or services a business cannot survive. For this reason, the collection department in any business is one of its most valuable assets.

When reviewing your aged debts it is important to calculate the percentage of debts in each aging column. You should be carrying no more than 3% of your whole ledger balance over 90 days. If this is the case then immediate action is required as your debts are not being collected quickly enough and you are looking at potential bad debt.

Keep in mind, the quicker you can recover your receivables, the faster you can cultivate it in the pursuit of additional profits.

Don’t be afraid to outsource potential bad debts, with a good debt collection agency you don’t lose control, you only bolster your existing credit control department.


Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.

 

Posted in Resources Tagged with: , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *

*

15 − 11 =