Business leaders seldom run a company so they can spend time chasing down delinquent payments. They have goals to accomplish and visions to realize. Wasting time plugging holes to prevent money from pouring out may be important, but it isn’t the best use of their time.
Credit: Jopwell via Pexels
Please keep reading to learn four key reasons why your business should hire professional debt collectors.
Table of Contents
1. Customers Owe
The main reason to hire a commercial collection agency is probably the first one to come to mind; customers owe money they aren’t paying. However, there might be different explanations for the lack of payment, and professional debt collectors don’t assume the customer is avoiding the payment on purpose.
Perhaps there’s reasonable confusion surrounding what they owe the money for, or they’re unaware it’s even owed. The best debt collectors lead with kindness and respect rather than overly aggressive or demeaning tactics for a few reasons.
First, the customer who still owes for yesterday’s services might remain a customer tomorrow. But you don’t want to alienate or sour them on the business by trying to recoup the money crudely. Secondly, leading debt collectors using a kind approach can enjoy debt recovery that exceeds the industry standard.
Finally, treating people with dignity and courtesy is its own reward.
2. Employee Overcompensation
Businesses should pay their employees well, but not too well. Sometimes companies overpay their employees for various reasons.
Some employees take advantage of training programs by having one company pay for their education, only to immediately quit and potentially give the benefits of this training to a competitor. Sometimes a computer malfunction results in the company releasing too much payment, or perhaps an employee improperly puts unauthorized travel expenses on a business card.
Debt collection agencies help companies uphold the agreements they make with their employees by ensuring payments adhere to signed contracts.
3. Outsourcing Pre-Collection Services
The effort companies invest into recouping owed money can result in a loss if there are more affordable ways to get the same or even better results. Outsourcing accounts receivable to specialists who do it more effectively in less time can be a powerful way to improve your margins without changing your business model.
In certain situations, hiring professional debt collectors instead of investing the time to do it yourself can be like getting free money.
4. Private Investigators
Finally, the best professional debt collectors go the extra mile in ways normal businesses wouldn’t do for themselves. Even among debt collection agencies, it’s rare to find one with a licensed private investigator to handle skip tracing.
If a customer is evading payment, they’ll locate them for you. Some of the best debt collection agencies include this service in their fees, so you don’t need to pay anything extra.
Collecting debts can be a sensitive task, but it’s only fair that companies and customers stick to the terms they agreed to initially. If even one of these reasons can help to boost your business, consider hiring a professional debt collector today.