07/25/2014

Value Partner Spotlight

When should I place my past-due customer for collection? 

There has always been a direct correlation between age of placement with a collection agency and percentage of recovery. Industry surveys show that even after only 90 days, the probability is that you will collect only about $.70 of each delinquent dollar placed. After six months, only about $.50 of each dollar placed and after one year, the best expectation is that only about $.23 of every past-due dollar will ever be recovered. So why wait?  Slow paying customers should be closely monitored and sent to collection sooner, rather than later. Early placement often leads to a full or partial recovery, while waiting may result in a total loss. 

Fortunately, NAHAD has a Value Partner with over 87 years experience in the personal handling of past-due accounts in the US and worldwide. CST Co has been the approved collection agency for NAHAD since 2008. CST is licensed and bonded in all US states where a commercial collection agency license is required. Their adjustors average over 20 years experience in commercial collections; these skilled professionals know what to do and say to coax payment out of even the most reluctant debtors.

NAHAD members receive a 20-25% discount off of CST's regular rates for preliminary collection service. CST offers many low or no cost programs designed to reduce your overall collection expense. One of these is their 10 day Free Demand service. By placing an account using this service, you can customize a Notice to send to your past-due customer that can include not only your own company logo, but the NAHAD logo as well!

Improve your recovery percentage and lower your cost of collection by calling CST Co today at 800-626-5873, or visit www.cstcoinc.com.