Time-consuming. Overwhelming. Hopeless. Does this describe your company’s efforts at consumer debt recovery calls? If so, it is time to hire a commercial debt collection agency, also known as third-party debt collection services.
Debt collection agencies take over responsibility of dealing with and recovering past due debt from your customers (debtors). What does this exactly mean? You don’t have to be the one to call customers who owe you money. Whew.
Furthermore, they help businesses improve their debt collection practices for better recovery in the future. Access to legal resources combined with financial knowledge from years of training gives commercial collection agencies a leg up. More debt can be recovered than if a company does it alone. In fact, it has been proven that a business will recovery a higher percentage of past due debt working with a commercial collection agency, than attempting it themselves.
Collection of Bad Debt
Debt Collection Laws
Commercial debt collectors are versed in debt collection laws. They legally abide by the Fair Debt Collection Practices Act or they are fined and put out of business. In other words, commercial collection firms will safely and legally recover your company’s debt. Is your company unsure or afraid of your debt recovery tactics over the phone?
Are you afraid of being sued for harassment for saying something wrong? Then, it is time to work with a collection agency association. They know how and when to contact debtors. Setting up time and date schedules for calls and letters are properly managed.
Professionalism
When your customer gets a call or letter from a commercial debt collection agency, rather than you, it is taken more seriously. Now, a consumer sees that third-party collectors have gotten involved in their accounts or debt. Instead of
your own recovery tactics, a call or letter from a credible collections company can do the trick.
A third-party debt collections certified demand letter or phone call usually makes people realize that their debt is serious and it is affecting someone’s business. Furthermore, professional debt collectors know how to negotiate payoff balances.
Using lawful resources such as skip tracing, third party debt collection agencies can track down hard to find debtors when you cannot.
Customer Relationships
Especially for small businesses and small business owners, commercial collections can get messy and awkward. Are your nice customers or clients that have acquired debts to you, other hard-working business owners? This can turn great professional relationships sour. The customer could very well not be answering because of shame.
A B2B collection agency (business to business) deals with your business debt collection for you. Salvage your client connections by letting someone else make that awkward call to your customers.
Hiring a Commercial Debt Collection Agency
Capital Recovery works with you to obtain debt owed, plus they will create a future plan for successful debt recovery. It is a tricky thing calling valued customers to collect money who could be struggling. Although, your business, its reputation, and credit are just as important as your customers’.
Learn more about our commercial accounts receivable (AR) management services. Are you still unsure if your business needs help? Don’t try to tackle commercial debt collections alone.
Contact CRC today to work with the most trusted commercial debt recovery agency.