Almost One-Third of You Hire a Collection Agency for Overdue Accounts

QUESTION:

Do you hire a collection agency for overdue accounts?

YES: 32%

• Who knew that trying to get paid is an integral part of the printing business? Sometimes it takes going that far to let people know that you are serious. — Ryan Clark, Direct Edge, Anaheim, CA
• We’ve only hired a collection agency a few times over the past 20 years. Each time it’s when a non-paying customer has really ticked us off. It’s unfortunate, takes a bunch of time and expense, but often provides results. — Jim White, Go Graphix, East Longmeadow, MA
• We have less than a handful a year and would rather warn the customer that a third party will get involved and it would be taken out of our hands. It allows us to do what we do best and the collection agency to do what they do best and gives the customer a chance to make good on their payment. — Linda Fong, FASTSIGNS Oakland and FASTSIGNS Hayward, Oakland, CA
• We handle our overdue accounts internally. To clarify, however, we do hire a collection agency to collect on overdue accounts to receive the funds. — Morgen Masciana, DCG One, Seattle, WA
• Luckily we’ve almost never had to do this in our almost 20 years in business, but if it came to it, we would utilize a firm we know that specializes in fair, but firm collections. — Derek Atchley, Atchley Graphics, Columbus, OH
• I’ve recently tried it on two accounts. One was successful, the other one not. — Peter Brunner, Full Sail Graphics & Marketing, Huntington Beach, CA

NO: 68%

• We don’t seem to have bad issues. We try to stay on top of receivables. Can create bad blood if it goes into collections, especially if a misunderstanding. If it was an out of state and a one-shot scenario, I would consider a collector. — Rick Mandel, Mandel Graphic Solutions, Glendale, WI
• Generally, no. We have our own team that handles 90% of collections on their own. Very rarely will we turn something over in only the worst cases. — Wade Neff, Strategic Factory, Owings Mills, MD
• We are mostly wholesale printer — in 35 years in business, only two accounts haven’t paid. — David Kaiser, Digitype Design, Tualatin, OR
• We have had to on the rare occasion but our accounting team is very persistent and flags accounts that tend to drag their feet with payment. Unfortunately we have been burned a few times and those clients are required to pay up front if they reach out for additional work. — Rob Matthews, M3, Greensboro, NC
• We have a great accounting staff and well vetted clients. Very little past due and timely collections helps manage cash flow. — Brian Hite, Image Options, Foothill Ranch, CA
• Typically not. We have in the past, but the vast majority of our clients pay on delivery of their jobs. Also, most of our jobs are relatively small and with trusted clients. — Jim Dittmer, JDA Creative Color, Gresham, OR
• We require payment prior to printing! — Jon Sherman, Flavor Paper, Brooklyn, NY
• Fresh Artists has an unusual model of income. We are licensed by parents to be able to make scaled up reproductions of their children’s artwork to give to corporations that make donations of money to Fresh Artists. Like your public radio station gives you coffee mugs or CD sets (remember them!?!?) when you send them a check to become a “member” supporting their station. We require the donations are made first, then they get the giant reproduction of the 2nd graders artwork! Genius and everybody’s happy! — Barbara Allen, Fresh Artists, Philadelphia, PA