As a business, it's in your best interest to be paid on time. With a good accounts receivable turnover ratio you can improve the efficiency of your enterprise and maximize profitability. But due to the unpredictable climate, you may occasionally need help in collecting revenue. 

Commercial collection is different from consumer collection in terms of who your debtor is. Consumer collection is the process of collecting money from individuals, while commercial collection is the process of collecting revenue from other businesses. 

If a business owes your business money, then it's important to contact the right professionals. Trust the commercial collection experts that adopt ethical practices, are well-versed in local laws, and understand the demands of commercial collection. This will ensure that you recover your revenue effectively and without bending the rules. It will also help you maintain valuable relationships in your industry.  

To improve your chances of a successful recovery, it's important to act fast. If the business that owes you money is in financial strife, then you'll be competing with other companies to be paid. If you act slower than their other creditors, then your debtor may not have enough assets left to clear your dues. Here are a few signs that you'll need the services of a commercial collection agency:

#1 Your Debtor's Business Is Facing Challenges

It's important to keep an ear to the ground. If your debtor's stock is sinking or if they're struggling to pay their bills, employees, and suppliers, then it may be time to seek advice from a team of professionals. 

#2 The Unpaid Invoices Are Piling Up

Sometimes invoices don't get paid on time because of temporary financial hurdles. Perhaps the business that owes you money is seasonal and is waiting to generate more revenue. If they have a good reputation, then it's advisable to give them more time. 

You can send another invoice by registered post or email or deliver a polite reminder on the phone. You can also incentivize timely payments by charging late fees and offering bonuses for early payments. If an invoice continues to remain unpaid well after the due date, then it's time to act. 

#3 You're Being Ignored

A trustworthy business with temporary cash flow issues will still intend to clear their debts to preserve their relationship with their suppliers. They will either ask for an extension or offer to pay their dues in installments. If your debtor is ignoring your letters, emails, and phone calls, then you should consider taking the next step in revenue recovery. 

#4 You Don't Have a Collections Department 

Many businesses don't have an in-house collections department because they don't have the resources to fund one. Even if you do, it's a good idea to try a commercial collection agency. They'll probably be more efficient at collecting outstanding payments because that's what they do for a living. And unlike your in-house team, they'll have the ability to report your debtor to a credit bureau. This is an effective weapon in an agency's armory because it can impact a business's ability to secure a loan. 

These are a few signs that you need to partner with a commercial collection agency. Don't waste time if you suspect your customer doesn't intend to pay. If you wait too long, the debt will turn into bad debt. Remember, your company should be paid for its hard work.