Trying to recover a debt as a first party recovery before sending an account to collection is essential for several reasons. 

1. Allows a business to maintain control over the collection process. This can be particularly important for companies that prioritize maintaining good relationships with their customers, as they can provide personalized support and guidance to help customers resolve their financial issues. By handling the collection process as a first party, whether by themselves or through the use of specialized software, businesses can ensure that their customers are treated with respect and understanding, rather than relying on a third party collection agency that may not have the same level of care and consideration

    

2. Often more successful at collecting debts than third party collection. This is because first party recovery is typically used earlier in the process, when the debt is not yet seriously delinquent. By working with customers to resolve their outstanding debts before they become severely overdue, businesses can improve their chances of collecting the money owed to them. This can be particularly important for businesses that rely on timely payments to keep their operations running smoothly. When a business is able to collect on its accounts, it can help to protect the company’s cash flow and ensure that it is able to meet its financial obligations in a timely manner.
   

    

3. More cost-effective than third party collection. This is because it does not involve hiring a collections agency, which can be expensive. Instead, the business can collect the debt without paying commission, which can save money and improve the business’s cash flow. This can be especially important for small businesses or startups that may not have a large budget for debt collection. By handling the collection process using dedicated software or in-house, businesses can save money and improve their bottom line.

    

Overall, recovering a debt as a first party before sending an account to collection is essential for maintaining control over the collection process, improving the chances of collecting the debt, and reducing costs. By making first party recovery a priority, businesses can improve their cash flow, protect their relationships with customers, and ensure that they are able to recover the money they are owed in a timely and effective manner. By taking a proactive approach to debt collection, businesses can protect their financial stability and set themselves up for long-term success.