Unfortunately Scott, business now requires a level of skepticism. People don't wake up one morning and say, "I'm not going to pay my bills any longer." There is always a trigger whether a reduction or elimination of earnings, an over-abundance of additional expenses (medical typically) or the break-up of a relationship where the tit-for-tat takes place, "...that's not my bill or you wanted the account..." As I convey to every business owner I meet with that is considering an outside vendor, such as a collection agency, only YOU as the business owner can make the determination as to when the cost of doing business is too costly. That crossroads requires you take action whether it means increasing prices/ charges to offset the losses you're suffering, evaluate how you're doing business that creates the receivable to begin with, seek recourse through an outside vendor in an effort to recover the debt(s) or ultimately fold up shop if you are operating in the red.

As I tell every client, whether you pay an attorney or use a collection agency, there is no guarantee of recovery. I actually advise clients, consider it like a "Second Chance Drawing". Individuals who owe businesses must have a measure of character to do what is right. The problem lies with the individual's pride in not communicating with the business that they have a cash-flow issue and thus cannot fully pay the bill. I have not met with any business owner who was not willing to work with an individual if the debtor had simply communicated and arranged a payment plan. Unfortunately, people's pride comes into play and they feel they will be judged or shamed because of their hardship and therefore, avoid the issue in an attempt to buy time as though Ed McMahon will show up on the door step with a Publisher's Clearing House to resolve their financial woes.

Offer a payment plan option that you can live with if you are successful in contacting them in your own collection efforts. However, after 90-days seek an outside vendor to work behind the scenes so you can focus on growing your business and providing great customer service. I can offer additional recommendations that can decrease the likelihood of receivables but no eliminate. This forum does not afford the space to articulate all those suggestions.