Net Back Overview
“The problem with most bad accounts is that they are passed to a Collection Agency only after five or six months of collection activity by the client company.
Statistically, after 30 days 5% of bills are unrecoverable, after 60 days it’s 15%, after 90 days it’s 25%, and after 12 months 75% of those bills are completely lost.
“What we do is ask clients to pass accounts to us as soon as their early collection activities fail to produce results. That way we get accounts early, in the 5-25% loss range, and we have a really good chance of recovery
The other advantage to this early pass-over is public relations; we’re the ones who pursue ‘the tardy’, not the client. That way the client keeps the customer, and we pursue recovery as directed by the client, diplomatically or intensively.”