Outstanding invoices can be a hindrance to all businesses from SME’s to Enterprise. If you do not take the required steps, they often turn into bad debts. A customer that doesn’t pay, isn’t a good customer. If they aren’t doing business with you and they owe you money, it is most likely because they owe you money. This is why it helps to hire debt collectors who have the expertise to handle such situations in a professional manner. However, most business owners, particularly individuals who have small businesses, are concerned about what it means for their business relationships. It is mostly because of a few common misconceptions. Read on to learn more about the myths when it comes to hiring debt recovery specialists to know the truth about them.
Top 6 Myths About Hiring Debt Collectors
- You May Lose Your Customer
some business owners believe that by engaging a debt recovery agency, they may end up losing the customer. However, reputable debt collectors adopt a professional and ethical approach. They will understand your business principles and respect your values. Also, they are aware of the best ways to deal with people in such situations. This helps to send the right message to customers and ensures that you receive the outstanding amount. By the time that you are involving a debt collector, your customer already knows they owe you money. Sometimes they are just waiting for it to become serious before they pay.
- Debt Collectors are Expensive
Contrary to popular belief, working with a debt collector is not expensive in the long run. They can help you receive your money, which was deemed unrecoverable. Moreover, working with an agency that has a “no collection, no charge” policy like eCollect is an excellent option. Debt collectors work to different business models. Some charge you for everything regardless of the debt being recovered. This is simply good money after bad. Others will only get paid when you do. This is because you only pay for their efforts, time, communication and correspondence service if they successfully recover your debt.
- Debt Recovery Specialists Work Only for Big Companies
Many people think that debt collectors are a good option only for big companies. However, there are debt collection agencies like eCollect who work with small and medium companies as well. They will understand your needs and provide services accordingly.
Moreover, debts are not just unpaid invoices. They can also be expenses such as labour costs, wages, equipment hire, a wholesale cost, and often the amount to pursue is your profit. Comparing the time to chase your own debts versus the reward from the payment, a business profit can mean that your time is worthless, and the job is without profit. Most businesses would be better served winning new business and letting the debt collector collect on past jobs.
- The Debt is Too Difficult to Collect
It helps to know that debt collection agencies have trained specialists who can help recover your debts. They are aware of the best techniques and practices as well as have access to the resources required to find your debtor and claim your money.
- The Debt is Not Significant
This is a common myth about debts that many people believe. However, small debts often add up to become a significant financial problem. Also, most businesses only make a small margin after all costs. When a debt is unpaid, it costs your business multiples to make that profit again. It helps to know that if a debt impedes your cash flow, it may benefit you to hire debt collectors to help you recover it.
- They Will Give a Bad Reputation to Your Business
The root cause of this misconception lies in preconceived notions that people have about debt collection agencies and the reputation is why a debt collector will get paid when you won’t. It helps to know that they have qualified and trained professionals who can help you recover your money efficiently and ethically. They adhere to the rules, regulations, and guidelines, including the Australian Consumer Law, National Credit Code, and other Australian laws.
Get Fast Debt Recovery with Our Experts
eCollect is an established debt recovery agency based in Melbourne with offices in Sydney and Brisbane but servicing the whole of Australia. We have qualified and professional experts to assist you. We will work to understand your needs and provide personalized solutions that meet your requirements. We place the utmost importance on customer satisfaction. When you work with us, you can rest assured that we only get paid when we collect your money and, you’re happy. Plus you always have access to your files through our secure online portal
For a single debt, you can use our debt terminator software but for more, speak to one of our experts free of charge to understand how to best recover your money and return cashflow and lost time to your business.
If you are looking for a debt collector and recovery specialist, feel free to call us at 1300 666 585.