Would a business deliberately throw money away or leave it on the table?
Of course not, however, many businesses do just that every day. When a business charges off an account they take it as a loss and pretty much forget about it. They took the hit on the bottom line and that’s that. But is it?
A business can either view a charge off as a permanent situation or another opportunity to collect monies owed. Keep one thing in mind. Just because a customer couldn’t pay you before doesn’t mean that they do not have the ability to pay now. However, if you don’t ask, you don’t get.
What does your recovery effort look like? Do you have a recovery program? Have you even thought about it?
Most organizations will tell you the same thing; “We don’t have sufficient resources to focus on collecting charged off accounts”. Do you have a sufficient bottom line that doesn’t need an infusion of income?
Think recovery! Recovery means to find something that was lost. A charge off is considered lost revenue. What would the value be to your organization if it recovered 25-30% of charged off revenue? What would that add to your organization’s bottom line? There is a huge opportunity to retrieve lost funds, why would you leave money on the table when it could be in your pocket?
Let’s be realistic. A customer will not come to you to remit payment on a charged off account unless it benefits them in some way such as when they are trying to purchase a home and they need to clean up their credit history. Why not be proactive and go to them?
You have not because you ask not! Start asking and watch what happens.