These signs indicates that you need a debt collector

So, you have launched your startup, congratulations. A startup doesn’t start to make a profit before they complete three years of running. That is why they cannot afford any bad debts or unpaid invoices. When one of your customers doesn’t pay a bill, it can certainly affect your business as it decreases your cash flow.

When it comes to unpaid bills, a startup doesn’t have enough resources or time to chase a debtor to collect the payment. Still, they can try, but when things become worse, it is best to hire a debt collection agency.

Let’s look at five signs that can help you determine whether you need a debt collector or not.

Unpaid bills that are at least 90 days old

If you have any account or outstanding bills that are older than 90 days and the debtor is showing no interest in paying the debt, then it is the correct time to hire a debt recovery agency like Cedar Financial.

Also, a debt collection agency can help you look for an account or identify a customer which can pose a problem or is unlikely to pay the debt. 

If the check of the customer has bounced, they might not pay

If a customer has given you a check and it bounces, it is a sure sign that the customer is not reliable. Especially, if they feign ignorance or don’t return your calls, make sure you move quickly, otherwise, they would leave you hanging.

Another advantage of hiring a debt collector is that they can advise you on how to handle such clients, and even help you figure out people who can do this by researching their credit history.

If you have dealt with more than one delinquent

If in the course of running your business, you have come across more than one customer who has not paid the debt on time, and you had to write them off, it is best to hire a collector. A collector can help you get those outstanding amounts and, also if you faced two or three delinquents, you can face more. And at that time a collector that you know, and have trust in, can help you.

Your debtor is not local

If you are dealing with a debtor who doesn’t live in the same location as yours or has left for a foreign location, you cannot collect the debt from him/her. It is because you are allowed to collect debt internationally, and it will mean spending a lot of resources and money.

But a collector who has a national or international presence can easily recover debt from delinquents living in different cities or regions.

You are not able to track your debtor

Sometimes a debtor goes MIA, and even after contacting every friend or relative of theirs, if you are not able to find the delinquent, opts for a debt collector. They have numerous techniques like skip tracing, which helps them trace the debtor using lots of databases.

If your startup is seeing any such signs, it is best to hire a collection agency.