Mistake #4: Not placing accounts with a collection agency soon enough. If your customer is ignoring your calls and letters, it may be time to use a collection agency. “And, you need to move on to what you’re in business to do, what you’re good at, which is not doing the bill collections,†she says. “Tell the customer we’re going to place your account with a third-party collection agency and then, do that. You can’t say you’re going to do something like that and then not do it.â€
Mistake #5: Not having documentation to support or proof of the debt when someone doesn’t pay. This could be a bill of sale, a purchase order or proof of shipment. A lot of companies will submit a purchase order, which will show the date, the purchase order number, what department ordered it. It might even include the actual person’s name who ordered it, what was ordered. You can also get proof of delivery from whomever you’re using as a shipper.