Placing Accounts that are Over 120 Days Old with No Communication
Were you unable to collect on your business debt before 2025 ended?
Did you know that there’s still a chance you can get that money back?
As you prepare your financials for a fresh start, one of the most critical — and often overlooked — actions a business can take is placing long-overdue accounts with a trusted commercial debt collection agency. When receivables age past 120 days with no communication from the debtor, those uncollected balances become increasingly unlikely to pay without professional intervention.
If you’re familiar with our article on how to turn 120+ day old accounts into quick cash (a great strategy for improving cash flow early in the year), consider this the companion piece: instead of focusing on turnaround tactics, here we focus on why and when beginning-of-the-year placements are smart, strategic business decisions.
Why You Should Pay Attention to 120+ Day Old Accounts with No communication
When an invoice or account receivable slides past 120 days without any meaningful contact — whether a partial payment, a promise to pay, or a discussion about terms — the odds of successfully collecting it on your own drop sharply. Industry data shows that the older a debt becomes, the lower the chance of recovery through routine internal efforts, and many organizations find internal collections cost-ineffective beyond this point.
At the beginning of a new year, holding onto these stale accounts can:
- Skew your books and make it harder to get an accurate picture of your company’s financial health.
- Tie up working capital that could be freed to reinvest in operations, payroll, inventory, or growth initiatives.
- Increase administrative burden, distracting your team from strategic tasks and timely receivable follow-up.
Placing these accounts professionally is a proactive way to clean your books and prepare for a strong new year.
What “No Communication” Really Means
For this context, “no communication” means:
- No payment activity
- No response to repeated invoice reminders
- No acknowledgment of outstanding balances
- No engagement on revised terms or settlement discussions
These silent accounts are often the hardest to collect — but they become much more manageable when handed over to collectors with the systems, experience, and authority to restart conversations and pursue recovery.
The Strategic Benefits of Beginning-of-the-Year Placement
Here’s why businesses should act before we get deep into 2026:
1. Improve Your Financial Reporting
Clearing out old, stagnant accounts helps give you a realistic view of net accounts receivable and your true working capital.
2. Free Up Internal Resources
Your team shouldn’t be stuck chasing dead accounts when a collection agency can handle them more efficiently.
3. Maximize Recovery Before It Gets “Too Old”
Even if a debtor hasn’t responded in months, a professional collector has tools — from skip tracing to targeted outreach — that can uncover paths to payment.
4. Reduce Bad Debt Expense
You can write off truly uncollectible accounts on your books knowing you gave them every reasonable opportunity to pay before placing them with experts.
When to Place — The 120-Day Rule of Thumb
Most receivables professionals agree: if an account is 120+ days past due and there’s been no meaningful debtor communication, it has entered the “aging bucket” where internal efforts lose effectiveness. Many organizations choose to outsource or place these accounts with a commercial debt collection agency to prevent further erosion of potential recovery.
This doesn’t just improve cash collection potential; it shows your clients and stakeholders that your business takes receivables seriously.
How RSD can help
We specialize in commercial debt collection and helping businesses handle accounts that have gone silent. With decades of experience in B2B collections, we know how to:
- Identify and contact decision-makers
- Validate debts with solid documentation
- Use skip tracing to locate non-responsive debtors
- Engage professionally while protecting your business relationships
Ready to Place Your Aged Accounts?
Don’t let the beginning of 2026 slip by without taking action on your old accounts with no communication. RSD makes it simple:
- Review your aging report to identify accounts with no responses.
- Gather invoices, contracts, and correspondence.
- Place the accounts securely through our client portal or by email.
- We take it from there — expertly and ethically.
Pick a Tried-and-True Debt Collection Agency
You don’t need to take a chance when you work with an accredited debt collection agency like RSD. We’ll get you the money you’re owed with as little effort and anxiety possible on your part.
To get started, call 248-370-8160 or submit an online contact form.