What aging threshold for collections should trigger a placement?
A common aging threshold for collections is 60 or 90 days past due, which IACC guidance describes as the average referral point; many companies place at 90 to 120 days. Place earlier when contact breaks down. Accounts can go one at a time as they hit your threshold or in a regular batch.
How do I set an aging threshold for collections?
Pick a cutoff, such as 60 or 90 days past due, write it into your credit policy, and review the aging report weekly or monthly. Add exceptions for broken promises or customers who go silent[source].
Should I send invoices to collections in bulk or one at a time?
Either works. Placing each account as it crosses your threshold avoids losing time, since odds fall as invoices age[source]. Batching monthly can be simpler if you place many accounts.
Exceptions that justify earlier placement
- Customer stops responding
- Broken payment plan
- Bounced payments
- News of closure, sale or bankruptcy
Related answers
When to send an invoice to collections · Collection agency success rate
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Frequently asked questions
Is 30 days too early to place an account?
Usually, unless warning signs appear. Most guidance points to 60 days or later for routine accounts.
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Sources: IACC, “Commercial Collection Guidelines for Credit Grantors” (2018); Business News Daily, “The Best Collection Agency Services” (page last updated Oct 17, 2024); Commercial Law League of America, “Probability of Recovering Commercial Debt with Age” (accessed Oct 18, 2026).
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