When to Write-Off Debt

Are you struggling with debtors?

You may be considering writing off their debt. A write-off occurs when a business removes the charge from a non-paying customer and adds it to their liabilities.

Here are a few situations when a write-off may be necessary:

Your Debtor has Gone out of Business – As a commercial business, you likely bill your clients as their company name. Once this company doesn’t exist anymore, it can be hard to track someone down to receive payment. The chances of collecting from an out-of-business company are low.

The Debt is Too Old – In a past article, we described why the age of the debt matters. After 6 months, the recovery rate of a debt decreases to 52.1%. After 2 years, it has a 9.3% chance of being collected. If the debt is even older, you may want to consider a write-off.

Learn more situations that may require a write-off on our website!

Debt Collector in Michigan

Don’t let your debtor win! Avoid write-offs with the help of a debt collector in Michigan!

Certified by the Commercial Law League of America and endorsed by the International Association of Commercial Collectors, Ross, Stuart & Dawson has the know-how to get you the money you deserve.

Our kind, professional-approach is empathetic yet firm and manufactured for success! Contact RSD today at 888-701-8181 or fill out our contact form to get started!