Debt Recovery For IT Companies

The IT industry is often at the forefront of business innovation – but it’s also the essential, underlying baseline that keeps almost every business going. It’s a busy, fast-paced industry, so it’s no surprise that many companies decide to outsource their IT needs to specialist companies instead of handle it themselves. These companies can charge anything from small one-off amounts to larger ongoing invoices – after all their infrastructure and skill is the thing keeping their clients businesses running. But what happens when those invoices go unpaid? IT companies need to protect their cashflow too, and these are just a few of the ways you can.

The World of IT Debt

IT companies are, without a doubt, some of the biggest unsung heroes of the business world. They keep a lot of our businesses safe, with services like remote monitoring, disaster recovery, cyber security and even anti-malware protection. And due to the nature of their services, they often work on 30-day payment terms for work already completed. If everyone pays on time, this works fine. But when things start going awry, cashflow can very quickly become a problem. But as we’ve mentioned before, cashflow is essential for a healthy business, and that’s no different for IT companies. The main issue is, IT companies are often very, very busy. Last-minute client issues, support tickets, hardware installs and prospecting doesn’t leave a lot of time for chasing invoices. So often, IT companies will leave overdue invoices overdue, and end up not being paid for big chunks of work. This cycle carries on until they realise they need help, and that’s where debt collectors come in.

What to Look For in a Debt Collection Partner

A debt collection company is often the best way for IT companies to recover money owed to them in a timely manner. But the difficulty is often in finding the right collection agency for you. Here are a few things you should be on the lookout for when hiring a debt collection company:

• A reputable company won’t ask you for payment before they’ve done the work. Good debt collection firms of any size will ask to be paid on results, rather than in advance.
• You should have a dedicated account manager for your business, so you will be talking to the same person every time, and won’t have to repeat yourself all the time.
• If a company is offering a ‘one size fits all’ approach to debt collection, they are worth steering clear of. No two cases are the same, and so the approach taken by debt collectors shouldn’t be the same either.
• Do they seem approachable and personable? This can be subjective, but being approachable can go a long way to collecting your debts with minimal hassle.
• Do they understand how important your reputation is, and how to protect it? Your reputation should be at the centre of everything you do, and if they are representing you, anything they do too.
• Will they protect your client relationships during the recovery process? An experienced agency will work ethically, understanding that those relationships you’ve built with your clients need to be protected where possible.
• Ask if the company is happy to provide you with comprehensive reports throughout the collection process. You need to know what’s going on and the status of your overdue invoices at all times.

If you’re an IT company who has been putting up with late payments, or spend a lot of your time chasing your tail trying to claim invoices that are overdue, it’s time to act. At Debtcol, we are equipped to support IT firms of all shapes and sizes with their debt recovery needs. We understand how important your reputation and client relationships are to you, which is why we provide a truly tailored debt collection service. If you would like to know more, just get in touch with the team today to book your free consultation.