A delinquent debt is an obligation past its due date. In B2B commerce, delinquency begins the moment a payment term expires. How you respond in the first 90 days determines whether the debt is recovered or written off.
Internal follow-up. Payment reminders from your credit team. Direct contact with the debtor's AP department. At this stage, most non-payment is administrative (lost invoice, changed AP contact) rather than intentional. Resolution rate: 70-80%.
Place with a professional agency. The transition from internal follow-up to external collection signals escalation. Recovery rate at this stage: 50-70%. Every week of additional delay reduces this by approximately 1%.
Amicable collection with legal escalation preparation. If the debtor hasn't responded to demand letters and phone calls, the agency recommends fast-track court procedures. Recovery rate: 40-55%.
Legal collection or write-off assessment. The agency evaluates cost-benefit of litigation based on debtor solvency, claim documentation strength, and expected recovery versus legal costs. Recovery rate: below 40%.
Delinquent debt doesn't improve with age. Every week of inaction reduces recovery. The optimal response: internal follow-up at 30 days, professional agency at 60-90 days, legal escalation decision at 90 days.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
