We had a similar issue (I'm also A/R) and we started to implement payment up front for these types of clients. So instead of our usual payment terms, upon booking we take a deposit for the full amount & Keep CC on file incase of additional expenses (parts used). We simply tell the customer upon booking that this is new and going forward they are being billed for the service upon scheduling. Jobber autopay with a CC on file is also very helpful for this. You still get some declined cards you have to chase, but if it gets to that we send them to collections for them to chase, they normally don't come back for service after being sent to collections.
Who do you use for collections and what is the process like?
We are in Ontario Canada, and use Dixon's commercial investigators. Not a cheap service, but worthwhile for customers who stop/don't respond to follow ups. We have an account with Dixon's and submit all the info on our client to them including the invoice once we've reached 60-90 days past due and have exhausted all inhouse resources for collecting payment, then they have a process they follow to assign a debt collector and then frequently call until the debt is paid or can take it to small claims if worthwhile.
