One of the questions I get asked often is: “What’s the most effective way to collect on a past-due invoice?”
My answer is always the same.
Pick up the phone.
It sounds simple, maybe even old-fashioned, but after spending years in accounts receivable, especially in high-pressure situations like liquidations and wind-downs, I’ve learned this: results come from conversation, not automation.
Email is convenient. It feels safer. But when it becomes the only tool, collections tend to stall.
Why Email-Only Collections Fall Short
Email absolutely has its place, but relying on it alone often slows progress:
- Emails are easy to ignore or postpone
- Messages get buried in crowded inboxes
- They may not reach the correct accounts payable contact
- Your contact may no longer work there
- Simple questions turn into weeks of back-and-forth
What could be resolved in a five-minute conversation often drags on far longer than it needs to.
Pro Tip: Email works best after you’ve confirmed A.) You’re speaking with the right AP contact, B.) the contact information is accurate, and C.) the person on the other end is responsive.
The moment emails go unanswered, it’s time to get back on the phone.
A/R Insights: Why This Matters in Liquidation Especially
This becomes even more important during liquidation or distressed situations.
When a company shuts down, customers often wait to see what happens before paying. Without direct outreach, payments aren’t offered, and in some cases, they’re actively redirected.
As we shared in our recent blog on accounts receivable during business liquidation, proactive communication is what protects cash flow when uncertainty is high. Silence works against you.
A/R Insights: In formal liquidation scenarios, accounts receivable recoveries average about 63% of face value, meaning nearly 37% of A/R may go uncollected without proactive outreach. — The PE Investor
Closing Thought
Collections don’t fail because people don’t care.
They fail when communication and processes becomes passive.
If you want clarity, accountability, and forward momentum — especially when the stakes are high — pick up the phone. You’ll be glad you did.