Closing gaps in recordkeeping and consistency in credit and collection procedures help eliminate some of the biggest obstacles to collection, according to a new survey by the International Association of Commercial Collectors (IACC). Nearly 37% of respondents chose missing records as the greatest barrier to successful debt collection. Missing information unnecessarily raises questions about whether the balance placed for collection is wrong and allows debtors to prolong the collection cycle, one survey taker said. Slightly more than half of the respondents (51%) said creating and adhering to a credit and collections procedure were the most important steps clients could take to clean up receivables. Most companies' invoices allow a 30-day payment term, IACC said. "Typically, companies make no collection contact until between 31 and 40 days, and do not issue a final demand until between 90 and 120 days have passed. Policies often say at that point, the company will turn an account over to a third-party collector, but they often don't." One collections manager suggests sending accounts to collection at 60 days, if they're not paid.

---