Bill Collector in a Box - Why Should Your Accounts be Cherry Picked?

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Why Should Your Accounts be Cherry Picked?
Most collection agencies will advise you to forward your accounts at 30-90 days. They will also tell you that your highest chances of success fall within the first 180 days of delinquency. They are not lying; however, keeping your money in-house is imperative to your company's bottom line.

In the first 30 days of placement at a collection agency, no more than sending a letter is done.

Why?
The fair debt collection practices act prohibits collection agencies from "foreshadowing" the 30 day window to dispute, or allow the customer to demand validation of the debt. What may surprise you is that 2-6% of debtors pay the bill in full anyhow.
Additionally another 7-50% (depending on the type of debt) will pay over the next 180 days. After that.well, most collection agencies just place the account on their "house" desk and wait for the debtor to call in trying to get the debt off their credit report. The first 90 days of this period is the "Cherry Picking" process. The money easily collected using letters and a couple of phone calls is money your company can retain using our product -see the visual example below for more detail:

10 bad debts x $100 = $1000 in debt
Creditor Using Bill Collector In A Box		Creditor Using Collection agency
$1000.00 x 12% US average	$120.00	$1000.00 x 12% US average	$120.00
Collected	$120.00	Collected	$120.00
Postage Expense	$3.70	Commission Expense	$60.00
Net to company	$116.30	Net to company	$60.00

The Difference is Clear
Collection agencies are a valuable tool in the collection of past due accounts and should be used when your efforts have been exhausted. Our debt collection product ensures that your company has utilized all of the tools available prior to forwarding your account. Our product also ensures your company retains the maximum cash flow from your debt prior to utilizing outside collection services. We are the only in house debt collection software program designed specifically to keep more of your past due debt revenue in-house.