Direct Recovery Associates is a California corporation specializing in account receivable collection services throughout the U.S. and internationally. Supporting our client’s account receivable collection efforts is our primary focus and goal.

Every business / creditor has an account receivable collection process in place. The difference between one business / creditor’s effectiveness in collecting accounts receivable and another usually depends on a few small, but significant, details.

The first such detail is the successful creditor makes collecting accounts receivable a high priority. Accounts receivable collection is usually at the bottom of everyone’s list. However, the creditor that realizes their account receivable collection is the life-blood of their business and treats it as such is generally very effective at reducing delinquent losses.

The second detail that differentiates a successful account receivable collection effort is a creditor that has a systematic collection process. They are the creditors that process accounts uniformly, both with their accounting, collection processes, deadlines, and third-party collection procedures. These creditors have a defined plan.

Another detail is an appendage of the second, which is that the successful creditor has a realistic approach to collections and involves an account receivable collection agency at the first sign of trouble. When a debtor has been warned a few times and then sees the creditor actually take action when it first said it would, the creditor establishes credibility and the debtor will believe what they say. This is many times the difference in persuading a debtor to pay.

When a creditor routinely softens on their demands for payment and their threats to take action, they not only lose credibility, but they also frustrate their credit professionals in their company. A controller or credit manager who has to continually re-draw the line in the sand because their boss won’t take action, such as involving an account receivable collection agency, becomes very frustrated as they "spin their wheels."

Essentially, if a creditor gives equal thought and effort to collection as they do to sales, they will be successful at collecting accounts receivable.