Debt Collection Blogs
Collecting Past Due Aerospace Industry Accounts: When To Quit
- Aviation and Aerospace
A question often arises in our offices from our aviation and aerospace industry accounts, “When should I stop my efforts collecting past due accounts?”
Aerospace Industry AccountsUnlike fine wines or select cheeses, past due accounts do not get better with age. Most Aerospace Industry Accounts make the mistake of waiting twice as long as they should before handing over their accounts receivables to a commercial collections agency. For instance, did you know your chances of collecting past due accounts in-house drop 12% every 30 days?
When it comes to collecting past due aerospace industry accounts, it͛s important for business owners to remember, collecting on outstanding receivables is a financial process. Because we have an invested interest in our companies, we tend to treat collection as an ͞emotional͟ process instead of a financial one. Whether or not we make or lose money needs to be the determining factor when pursuing collecting past due aerospace industry accounts
For example, Collecting on an invoice that is less than 120 days old holds an 80% success rate while dropping to 40% collectible after that time frame. Because we still see the debt as outstanding, we mistakingly apply the same amount of time and effort trying to collect those older aerospace industry accounts as we do the new ones. Our motto: Don͛t spend a dollar chasing after a dime.
Early warning signs it may be time to stop your collecting past due aerospace industry accounts efforts
Customer avoids contact attempts
Refuses to sign personal guarantee
Customer breaks terms of original agreement Customer breaks their first promise
Customer only makes partial payments to buy more time.
Customer ignores demand letters
You have business to run. You have better things to do than spending your valuable time Collecting you past due accounts. Handing your outstanding debts and aerospace industry accounts receivables over to a commercial collection agency is often your best course of action
If you are a Aerospace Industry business owner trying to collect on past-due accounts, a reputable collection agency can often help. Turning accounts over to an agency for collection may seem like signaling defeat or throwing in the towel to some collectors. Rather than take the defeatist attitude of ͞I can͛t collect this on my own,͟ take the attitude that collection is a team effort with you and your outside agency working together.
If you are a business owner trying to collect on past-due accounts, you may find the process quite frustruating. Turning accounts over to a collections agency may seem like a desperate step. But debt collection is a team effort, with you and the collection agency working together to accomplish the same goal: recovering your money. Contact The Stevens-Lloyd Group today so we can start working together right away.