Do I have to sign a contract to engage the services of LDB &
There is not a contractual obligation to use our services, unless
specifically requested by the client.
We have our share of delinquent accounts and continue to have dialogue
without resolution of the past due balance. At what point should
they be placed for collection?
far as a time frame is concerned, if an account has aged beyond
90 days, we believe this meets the test of reasonableness with respect
to being placed for collection. Your customer has been given a generous
time frame to do one of three things: 1) pay in full, 2) call with
any questions, or 3) address a dispute.
What type of documentation should be supplied in order to commence
with the collection process?
simple terms, the more information supplied to the collector, the
more leverage there is to press for resolution to the delinquency.
The collector is like an auto mechanic, the more information supplied
about the problem, the chances increase for an easier fix. Helpful
documentation examples include; statement of account, past invoices,
signed contracts and credit applications. Also, notes that have
been taken as evidence of effort put forth to collect internally.
Some of our customer relationships are many years old; won't they
be insulted if I place them for collection?
necessarily. Terms that companies have for their vendors are usually
clear. Leniency is granted on occasion with certain clients, however
beyond 90 days, your customer is most likely taking you for granted.
Signs such as, stretched payments and difficulty communicating to
resolve the bill present themselves as time moves forward. Customers
talk to each other, if it is known that your company is firm with
regard to payment policies and terms, your level of respect will
be elevated within the business community.
What does an agency do that I cannot?
alliance with a reputable agency is one of the best management decisions
a credit professional can make. The responsibility of managing the
slow paying customer tends to divert time from your"bread and
butter" customers. The agency you decide to establish a relationship
with will focus solely on the time-consuming problem customers.
In addition, a properly documented case submitted for collection
allows the agency to have control of the aged account, on your behalf.
This eliminates "ruffling the feathers" of your customer
through repeated, firm requests for payment which may result in
the customer paying when "they get to it."