When to Hand Over Unpaid Invoices to a Collection Agency
                     When to Hand Over Unpaid 
Invoices to a Collection 
TAhisg gueiden procviydes a comprehensive look at effective debt 
recovery strategies. Learn the best timing and approaches for 
escalating unpaid invoices, improving your recovery results while 
minimizing financial losses.
Identifying the Problem Invoices
30+ 60+ 20%
Days Past Due Days Past Due Invoices Overdue
Flag invoices reaching this critical Often triggers collection agency A common indicator for collection 
threshold. consideration. escalation.
Accurately track invoice due dates and payment statuses. Calculate the precise aging of your 
receivables. For instance, if 20% of invoices are past 60 days, it's a collection trigger.
Initial Steps for Invoice Recovery
Send Reminders
Utilize both email and postal services.
Make Direct Calls
Initiate personal contact with the debtor.
Offer Payment Plans
Negotiate flexible terms to encourage payment.
Document Everything
Record all communications and agreements thoroughly.
Begin with reminder notices via email and postal mail. Follow up with direct 
phone calls. Consider offering flexible payment plans or negotiating terms. 
Always document all communication and agreements diligently.
Recognizing Red Flags
Avoidance Tactics Business Issues
Debtor consistently avoids communication. Signs of business closure or bankruptcy filing.
Broken Promises Quality Disputes
Repeated failures to meet payment commitments. Debtor raises unfounded disputes over service.
Be alert for key red flags. These include debtors avoiding communication and breaking payment promises. Watch 
for signs of business closure or bankruptcy filings. Also, be wary of sudden disputes over service quality.
Key Indicators: Time to Escalate
90-120 Days Overdue
Invoices are significantly past due.
Internal Efforts Fail
Your own collection attempts yield no results.
Justify Agency Fees
Debt amount makes collection cost-effective.
Cost-Benefit Analysis
Evaluate potential recovery versus agency cost.
Escalate when invoices reach 90-120 days past due. If internal 
efforts are unsuccessful, it's time to act. Ensure the debt 
amount justifies agency fees. Perform a cost-benefit analysis of 
potential recovery.
Choosing the Right Collection Agency
Verify Credentials
Check licensing and accreditation.
Review Reputation
Examine client reviews and agency standing.
Ensure Compliance
Confirm adherence to FDCPA regulations.
Understand Fees
Clarify fee structure and success rates. Consider a 
debt collection agency for small business.
Carefully select a collection agency. Verify their licensing and 
accreditation. Check their reputation and reviews. Ensure they comply 
with FDCPA regulations. Understand their fee structure and success 
rates.
Preparing for Handover
Gather Documents
Collect all invoices, contracts, and communications.
Provide Debtor Details
Supply comprehensive information about the debtor.
Set Clear Expectations
Define recovery goals and agency responsibilities.
Prepare diligently for the handover process. Gather all relevant 
documents, including invoices and contracts. Provide detailed 
debtor information to the agency. Establish clear expectations and 
sign a service agreement.
Contact Us
Williams Rush & Associates
4144 N Central Expy #945, Dallas, TX 75204
Phone: (855) 869-9847
Email: [email protected]
Need a Dallas collection agency?