To run a business, you will need to keep your cash flow in order. This means getting invoices paid on time by your customers. However, as a business owner, you will inevitably encounter unpaid debts. Your clients won’t always pay their bills on time, which can cause a chain reaction that messes with your cash flow. Additionally, chasing payments and juggling your payables can be stressful.
When it comes to collecting unpaid debts, hiring a debt collection agency to handle collection can save you time and money. Debt collection agencies have the experience and time necessary to collect debts; they can get better results than you can within a shorter time. Finding a reputable agency is the key to your success.
Choosing the right debt collection agency can be a journey. However, you want to see them as a partner in your journey, someone who is transparent and updates you on your progress as often as possible. Even if you find an excellent debt collection agency, there is still more you should know.
Before hiring a debt collection agency, there are some things you should know.
Legal Protection: There are many rules, regulations, and laws governing the debt collection industry, making it quite complex. Debt collection agencies can help you to navigate these laws and stay out of legal trouble.
Financial security: Working with a qualified debt collector is primarily about receiving the money owed to your company. Debt collectors will increase the likelihood of your customers paying off their debts, thereby improving your cash flow and virtually every other aspect of your business.
Some debt collection firms make their income by charging by the hour, by the letter, for court costs, interest or success. This can mean there is a bill for you at the end, even if the debt isn’t recovered. These costs often misalign with the needs of the creditor. When choosing a firm, make sure that the costs align with your goals. It is always best to consider the overall cost before you begin.
Best Time To Assign
The longer the debt goes unpaid, the less likely you will be to get your money back. As slow payments cost you more time and money, plan to recover your amount as soon as possible. It is considered overdue if an invoice has remained outstanding for 90 – 120 days. If you give 7 to 14 days, then even 60 days is very late for recovery. Be sure to get your debts to an agency as soon as you can.
Unfortunately, no debt recovery service can tell you when and If they will be able to retrieve your unpaid debts. However, they will set out a timeline of their actions, what they plan to do, and when they plan to do it. You might be able to see your money in as little as 7- 14 days if the debtor promptly pays when they receive the letter of demand. However, your debtor may be willing to negotiate a payment plan which will undoubtedly add up extra time, but you will be receiving an increment in the receivable. You just never know what the debtor will do.
When choosing a debt collection agency, be sure to select professionals who align with your recovery goals, such as eCollect. eCollect can help you recover any range of debts, and they do so legally and professionally. With over 20 years of experience, they have no hidden fees or terms, so you will know everything before you jump into debt collection. eCollect has an excellent record of proving its clients in every possible way and assures in providing customer-oriented services, so what are you waiting for? Get in touch with eCollect today and get your unpaid debts back.