What should you do about old accounts that are still unpaid? If you cannot afford to spend any of your business’ resources to collect on these old accounts, you should think about selling them to debt collectors.
If you don’t have the time and resources to get your creditors to pay off their debts to you and can afford to take the loss, you can sell ageing accounts to debt collectors for pennies on the dollar. Debt collectors usually purchase ageing accounts in bulk at a very small price.
Debt collectors become the debtors for these accounts and work on collecting the debts from your former clients. Do not expect to get rich by selling old accounts to debt collectors but this is a good way to earn a small amount of the money owed to you without having to put any time or efforts into collecting it.
Do some research about different debt collectors and let them know you have some accounts for sale. Be prepared to negotiate the prices. Debt collectors know it is in their best interest to spend as little as possible on ageing accounts so you should be ready to defend the value of the accounts you are selling.
You should be able to get more for your ageing accounts by letting debt collectors know you are accepting offers from different companies. Debt collectors will try outbidding each other to get your accounts. If you only have a few accounts you want to sell, it is best to wait until you have more ageing accounts you can get rid of. Selling your accounts in bulk will attract larger debt collecting companies that can afford to spend more on the accounts they buy.
Selling your old accounts is the best way to get a small portion of the money. Do some research on different debt collectors and make sure you sell your accounts to a reliable company.