If there is one thing I’ve learned during my decades at Canada’s top national collection agency, it’s that the majority of business people misunderstand the entire debt collection process.
For example, if you a customer owes you $2,000, and the debt is 12 months past due, what is that account worth if you continue trying to collect it yourself?
No, not the $2,000. Not $1,000. $500? Getting warmer…
The answer is about $456.
Ouch. That’s because the statistical likelihood of getting paid without a collection agency is only 22.8 percent one year after the due date, based on real-world data.
Sad but true.
What’s worse, if the debt is two years old and your business operates in Alberta, BC, Ontario and 3 other provinces, it’s virtually worthless. That’s because the statute of limitations on debt collection, which varies by province, will have expired. After that time, you cannot sue for a court judgment, and thereby have no legal recourse. (There are two exceptions: if you have received a partial payment or written acknowledgement of the debt, the statute is reset as of the date of the most recent such event.)
That’s why we’ve created a fun and one-of-a-kind online tool to help you instantly see what the money owed to you is worth, as well as the time remaining to collect in your province or territory – so you can take appropriate action to get the maximum money back.
Because if there is another thing I’ve learned, it’s that bad debt is almost always the result of waiting too long before taking action! Remember, you can improve your odds by turning over the debt quickly to a high-performing collection agency.
Use the button below to access this free tool. Play around, share it with your colleagues, and be informed in your collection efforts. Let me know your thoughts, or any specific questions about collecting debt. It’s what we do all day long!