Learn How to Write Collection Letters or Become a Bank

Chasing money owed or receivables is an unpleasant task for many business owners. Yet, by having clients owe you is essentially turning your business into a bank. And we all know what's happened to the banking industry.

When you delay pay, it can seriously impact your ability to collect on aging accounts. About 75% of receivables after 3 months delinquent are paid; in 6 months the payment drops to almost 50%; and a year later only 30% of delinquencies are collected, according to the Commercial Law League of America. Stay on top of your collection letter mailings. Before you consider a collection agency, fine tune your collection letter process by viewing sample collection letters and other tips. If you go the route of hiring a collection agency, make sure they abide by the Fair Debt Collections & Practices Act (FDCPA).