The real key to maximizing collection recoveries it to know when to give up and place that former account, now a debtor with a collection agency. There is also that overhead expense of handling the efforts to collect when you time is better spent working current past due's on a dollar descending basis. Turn it over well before there are so many debts owed to so many clients that recovery becomes doubtful at best. Recognize that time is the major deteriorating factor to the recovery of past due debt.
Give up the claim to a collection agency in time to recover the primary debt, turn it over when there is life to the debtor, not when you are one of many client pursing the same debtor, its like a run on the banks. First come first paid.
This time valued chart supports the fact that you should keep that receivable moving towards a collection agency to maximize its value as a paid account to your company.
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