Recently my family and I visited Niagara Falls for a quick weekend vacation. Being a Buffalo native growing up so close to the falls, I always took for granted what an amazing feat of nature they really are.
I always knew that people have harnessed Niagara Falls to provide electricity, but never knew that those efforts are also helping to preserve the falls. Left alone, the falls would erode at a rate of 10 feet per year. Because people have been diverting much of the Niagara River that would eventually reach the summit, the erosion rate is now only about 1 foot per year. In fact, they estimate that for much of the year, only 50% of the Niagara River actually reaches the summit of Niagara Falls. The rest is diverted for electrical power generation.
This got me thinking about the nature of our business. If creditors knew the advantage of being proactive (like those that harness the power of Niagara Falls), and outsourced their past-due receivables shortly after delinquency, they would not waste any revenue that would otherwise be lost by having those debts simply sit there on their balance sheet.
By identifying and diverting those slow-pay and delinquent accounts to an agency sooner rather than later, they would be left with a much more manageable and current Accounts Receivable balance sheet, and would thus be able to focus their attention on the more recent, and more collectible accounts.
Therefore, they would eventually limit the number of accounts that they would have to outsource to an agency, much the same way that the Niagara power plants limit the natural erosion of the falls.
To stare at the falls you cannot help but be awed by the power of nature, and yet, people have been able to maintain some measure of control. I hope any creditors with a lot of past due accounts avoid being intimidated or overwhelmed by the numbers, and take the initiative to get control back by utilizing an agency like American Profit Recovery.
Not only will we help collect the past due revenue, but we will do it diplomatically and maintain that relationship they have established with the consumer. Just like the Niagara powers plants conserve the beauty of the falls for generations to come.