Sending one of your clients to debt collection agencies can feel odd if you’ve never done so before. However, there are multiple reasons to hire a debt collection agency. While you may not receive all the money from every claim, the sooner a debt collection agency can begin collecting on an account, the more likely it is your money will be successfully recovered.
Here is when — and why — you might hire a debt collection agency help with an overdue account:
Your Business is Small.
Unless you have staff dedicated to in-house collecting and credit management, it is best to call a collection agency. If you have a small business with only a few employees, they may not have time to spend calling old clients and customers. An employee that lacks training in this specific area will have a hard time collecting unpaid balances because there is a strategy that must be learned, practiced, and fine-tuned with experience. Hiring a collection agency is a more successful way to contact customers who do not pay their bills promptly.
Your Credit Department Cannot Collect Quickly Enough.
Some businesses have an experienced credit department that is overwhelmed and unable to collect debts quick enough. The longer a bill goes unpaid, the less likely it is to be collected in the future. Instead of sending bill after bill and allow debtors to take their time and eventually forget about or neglect payments, you can work with a collection agency that will ensure a quick turnaround.
An Account is too Complicated for Your Credit Department to Collect.
Experienced debt collection agencies know how to talk to and work with more challenging situations. Collection agencies are trained precisely for these cases. While your credit department may be able to manage most cases, collection agencies have the knowledge, experience, and tools to work with debtors to collect payments when your business doesn’t seem to be getting any closer to closing unpaid balances.
A Debtor has Seemingly Disappeared.
If contacting debtors result in unanswered calls, returned bills, and radio silence, it is time to hire a debt collection agency. Fortunately for you, debt collection agencies have extensive resources available to help track down people with unpaid bills. People often move or change phone numbers and may not realize you’re trying to reach them. But we can help track people down.
Debt Collection Agencies
While knowing when to send a past-due account to debt collection agencies is sometimes difficult, and you won’t always receive the full claim from every customer, your return will be much higher if you employ an experienced collection agency. Call us today, and we can talk you through the process so you can decide if our services are right for your business.