Here are some facts to consider when reviewing delinquent accounts:
- Some debtors will not pay without third party intervention
- The longer a debt goes unpaid, the higher the chance of a write-off
- Bad debt can lead to high interest borrowing
- If your customer files bankruptcy, you stand a chance of receiving no money
- It’s Your Money – you shouldn’t have to wait for it!
With a total commitment to receivable management, Tri-Mark continues to find
cost effective ways to service our clients. Our various programs and options will reduce the number of days you wait for payment.
Know the Danger Signals:
A Danger Signal is a warning sign that a customer may not be willing or able to pay. In order to avoid write-offs and other receivable problems, it is important that your staff be able to recognize these signals. Here are just a few:
- Checks returned for non-sufficient funds
- Customer is never available
- Offers of partial payments
- Postdated checks
- Unfounded disputes
- Broken Promises of payment
- Turnover of key personnel
- Sharp drops or changes in a customer’s normal buying pattern.
(A large increase in orders can also be a danger signal because it may indicate that the customer has lost credit privileges with other companies)
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