What can a debt collection agency do for your business?

One of the questions we are often asked is why businesses should turn to a professional debt collection agency, rather than pursuing collections themselves. You might be looking at it and thinking that there aren’t enough benefits or compelling reasons to partner with a collection agency – especially if you already have in-house staff whose job it is to chase unpaid invoices. But hiring a professional debt collection agency can still be beneficial to your business, and today we wanted to share a few of them with you.

Experience

The main and perhaps most obvious benefit a professional debt collector can bring your business is experience. A reputable collector will have a team of staff who are all widely experienced in dealing with debtors who might be reluctant to pay what they owe, and know the best approaches to take to extract that money without damaging the business relationship. They will also be able to establish the validity of any excuses given (as some will be genuine and some will not), and be able to find creative solutions to the problem that keep everyone happy. Ultimately, just as you are an expert in your field, debt collectors are experts in theirs, and more likely to get you the results you want.

Protected Relationships

There are few things that can damage a relationship faster than chasing payment, and chasing it badly. Money is a sensitive topic for many people, and if you approach collecting it in the wrong way, you could end up losing a client over it. This is one of the reasons many businesses put off chasing late payments for so long. But by employing a separate, specialist agency to do the hard part for you, you can focus on maintaining your personal relationship with the client. And as for the money part – a professional collector knows how to be friendly and polite, and will also do all they can to preserve the relationship while still collecting the money owed to you. They also remove the embarrassment factor, meaning clients are usually happier talking to them about financial issues than directly to you, and the issue can be resolved much faster.

Results

Of course, the most important part of the whole process is the results. A good debt collector will only ask to be paid when they deliver results, and usually charge a percentage fee of what they recover. This gives you the confidence you need to go ahead, and means the collector is motivated to get the best end result for you. That means understanding how important your relationships with your customers are, doing all we can to keep things on good terms while still recovering your money in an ethical, honest and hassle free way.

Peace Of Mind

One of the biggest worries modern businesses face is cash flow problems. Outstanding debts on your accounts can become a big problem very quickly, and so it’s no surprise that you want to ensure the money you are owed is in your account as soon as possible. Using a debt collection agency means you don’t have to have those difficult conversations with your clients, you have access to advice and support on how to deal with stubborn collections, and you can sleep safe in the knowledge that your reputation is protected.

If you’d like to know more about the debt collection process, or how Debtcol can help you, just get in touch with the team at Debtcol today to arrange your free, no obligation consultation.