Sad but true

Have you ever wondered why companies and medical practices turn their past due accounts over to a collection agency? To hear a lot of reactions from the debtors, you would think it is for revenge or to be just plain mean. It's not of course, it's because the creditors are OWED the money and they want to be paid. In some cases whether or not the creditor gets paid can mean the difference between staying in business or NOT!
I had a publishing client call recently and he told me that he is shutting down and trying to sell one of his magazines because NOT ENOUGH ADVERTISERS ARE PAYING THEIR DEBT to justify keeping the money losing publication alive.
We also her debtors complain that "the doctors" make enough money so if they don't pay their bill, it's no big deal to the doctor. What these patients don't consider is that most medical practices have considerable overhead and most doctors begins practice with literally hundreds of thousands of dollars of student loans that need to be repaid.
In this economy, it will pay you to turn your accounts receivable over to your collection agency sooner than you might currently be placing those accounts. A/R are not like a fine wine, they do not get better with age.