Every amount of revenue, past and present, is important for your business. The longer a bill remains past due, the less time you have with the outstanding monies to draw interest and reinvest. While you could spend time and money training or hiring staff specifically to locate past due customers, a more cost effective solution is to hire a debt collection agency. There are several advantages to using a debt collection agency, aside from the obvious collection of outstanding monies.
Perhaps the least obvious, but most important advantage of using a debt collection agency to locate past due customers, is that they have a specialized skillset and resources at their disposal. Many debt collection agencies have software and subscriptions to online services that make finding delinquent customers easier and faster than if you used the traditional route. In addition, debt collection agencies usually have one or several employees whose sole goal is to locate past due customers. Consider the amount of time and effort you would expend to match this kind of specialization.
Another advantage of employing the use of a debt collection agency to locate delinquent customers is that they are motivated to find debtors and get them off your books. Debt collection agencies may have a flat rate foundation fee, but most also will not get any additional payment unless they deliver your delinquent debts. This alone is motivating enough for diligent collections agents to work their hardest to locate delinquent customers and close their accounts. Pursuing any debt successfully requires both flexibility and creativity and an effective debt collection agency will do everything legally possible to locate a delinquent customer and arrange a payment schedule. Once this has been accomplished, your company will no longer need to retain delinquent accounts on the books.
The final advantage of using a debt collection agency to locate delinquent customers is that the employees of the agency are well versed in the legalities of debt collection. The last thing your company needs is litigation against you because someone in your company took it upon themselves to close a debt in a way that wasn’t entirely legal. This alone can cost your company thousands of dollars in lost wages and litigation costs. Debt collection agencies make it a part of their regular training to stay on top of changes in the law that affect collections practices. This saves you from the cost of continually updating employees on this information.
To get started today, call our toll free 1-877-680-6064 to speak with an associate or fill out the form above and we will contact you within 24 hours.