Common mistakes
Practices often don't recognize the signs of early default. When a client doesn’t pay their bill within 60 days or haven’t set up or are following a payment plan, they are telling you that they are not going to pay.
Often, your staff is in charge of trying to collect on unpaid accounts and often are not trained in the most effective way to do so. This is a waste of not only valuable time but resources.
Using collection agencies can be expensive and don't care about your relationship with your clients. Often, agencies are paid on a commission basis and "cherry pick" over accounts and attempt to collect only the larger past due accounts. Ignoring the smaller uncollected accounts is still losing money.
What is needed is a proactive, systematic business model that will work all of your delinquent accounts equally. Providers must take an approach that will reduce losses as well as speed up cash flow from past due accounts. You need to work with your clients quickly and effectively.