Running a business is hard enough without having to worry about uncollected debts. Luckily for you, debt collection agencies can provide essential services that help your business retrieve its bad debts, build relationships with clients, and reduce business costs. It can be beneficial for many companies who lack the resources, personnel, or time to manage delinquent receivables by working with a credible debt collection agency.
Depending on the experience level of your internal personnel, they may not possess the specialised skills or knowledge required to handle debt collection properly. Debt recovery can be emotionally exhausting and takes a special personality to be good at it. It’s not about being nasty, it’s about being focused. It involves making phone calls, preparing letters, following protocols, and exploring legal options. It may be more profitable to hire a debt collection agency instead of having employees do work outside their area of expertise. Businesses with limited employees and time find opting for debt collection services an effective alternative to internal collections.
Another reason for hiring a debt collector is to protect your business’s relationship with its clients. Often, agencies are the “bad guys” when dealing with debtors. Your business does not have to communicate directly with debtors since the collection agency can handle all the steps necessary for collections – 30- to 60-day notification, calling, credit reporting and litigation. Maintaining a client relationship through the involvement of a third party may even help you avoid losing your client.
If you recognise any of the below signs, you should be looking to hire a debt collection agency:
The collection process can be documented much better when a collection agency is involved. Communication between Debt Collection agencies and debtors is recorded in the debt collection system of each agency. As a result, you will have a record of every effort to collect a debt if you decide to take legal action against the debtor in the future. It shows the court that you have made substantial efforts to collect this debt. eCollect makes all this information available to our clients through a secure online portal.
Unsuccessful Debt Recovery
Hiring a collection agency increases your chances of collecting troublesome debt because debt collection agencies have experience managing unpaid debts. The most important function of your business is running it, but the most important function of a collection agency is to collect debts. Professionals know how to get debtors to pay legally, and collection agencies pose much greater power to debtors than you do.
Slow Debt Recovery
With a debt collection agency, debtors pay you quickly and more frequently. You can get your money faster if a debt collection agency offers services to accelerate the payment process. A collection agency will take care of your debt collection, so you don’t have to spend time searching for your customers. Saving time, energy, and money gives you more time to focus on what matters – your business.
Lack Of Time
Debt collection agencies do not have a wide range of responsibilities at any given time, unlike business owners who must handle several tasks at once. Consequently, unlike your business, they can devote all of their time, energy, and resources to contacting debtors and collecting funds owed to your company. They achieve quick results because of their undivided attention. A typical accounts dept may spend up to 4 days a month on debt recovery. My working with a good debt recovery agency, can come down to an hour once a month.
Lack Of Debt Recovery Tools And Skills
In addition to providing a more efficient recovery process, hiring third-party debt collectors permits you to access several tools and strategies. A debt collection firm can help you track down a client by using skip tracing when a customer cuts off all contact with your business – their phone is disconnected, and they haven’t left a forwarding address. A collection agency also has access to public records databases, credit reporting devices, and other information sources that can be useful to find a client.
Therefore, if you are looking for a reliable debt collection agency to help you recover debts you thought were lost, then you should head to eCollect. In addition to ISO certification, eCollect has Commercial Agent Licenses (Vic, NSW, QLD & SA), an Australian Financial Complaints Authority (AFCA) and an Australian Financial Complaints Authority (AFCA). When eCollect is available, you will never have to face problems like unsuccessful debt recovery, slow recovery, lack of skills, or proper documentation. Put your bad debts in the correct place, your bank account.