What is the Best Approach to collect my debts?
As a general rule, Forster Mercantile recommends that collection action should commence when the overdue account is double your trading terms in age. Therefore if your trading terms are 30 days you should commence collection action at 60 days.
Collection action may be as simple as having us send a Demand Letter, but the introduction of Forster Mercantile as a third party is often enough to have the account paid.
The longer you leave an account to be collected, the less chance there is of recovery. Statistics show that every month after the first two months of the account being overdue reduces the average recovery by 5-10%.
If you are asking when is the best time to place an account, you probably need to place it now.
