By using a third-party agent to collect unpaid debts, you can focus on the truly important things; like new customers and building your business into a successful company.
The number one benefit of using a debt collector for debt recovery is their experience and knowledge in their field. As a business manager or owner, you may not actually have any experience or prior knowledge, or even know where to start with handling a late payment. Debt collection agents do. They know exactly what to do and how to do it.
Advice Is Part Of The Package
When you hire a debt collection agent, the advice they give you is part of their service. There are times when it may become necessary to escalate a case to court, and a debt collector will be able to advise you on what is, and what isn’t, a good path to take. They will handle all of the admin and the phone calls, only coming to you for decisions.
Results Worth The Time And Money
Debt collectors typically base their fees on what they recover for you. Where possible, this will be statutory recovery costs or may even be provided for in your own terms and conditions. This means that any bonuses they may get hinge on them being successful with their cases. You are unlikely to hire a debt collector who doesn’t want to make a little extra cash; which makes many debt collectors extremely good at their jobs.
This should be an encouraging factor to any business owner. You can feel assured with the knowledge that your agent will be as motivated (if not more motivated) to help you find a solution.
Having a debt collector calling you or communicating with you in other ways is unnerving for anyone, especially if that agent starts threatening to take you to court. An individual who knows they owe someone money is more likely to try and reach a beneficial solution for all parties involved, than spend time and more money going through the court system. Especially if they know they will lose the case.
Debt collectors get fast results. People pay the money that they owe a lot faster when a professional debt collector is on their case about the unpaid invoices that they have.
Everything Is Documented
Lastly, collection agencies make note of absolutely everything during a debt collection job. Records are kept, and this documentation is fully viable in a court of law. Should you wish to take further action, you need only contact the debt collection agency that you used for their documentation.
In addition, you can also use the documentation when you’re filing for bad debt during your tax returns and deductions. HMRC will want proof that you tried everything before they will be willing to sign off on bad debt.
At Debtcol, we are always happy to help businesses who need some advice, or a helping hand in managing their debt recovery. From simple consultancy through to outsourced debt management and even support through the court system, we are there make sure you get the money that is owed to you. If you would like to know more, just get in touch with us today.