Business growth means difficult decisions are often waiting at the crossroads. Do we keep doing this thing in-house? Should we hire someone? Or is it better to partner with a vendor? Luckily, as a small business owner, there’s no need to wait to hire a collection partner for debt recovery services. Hire the right firm to manage your account receivables, and over the months, the difference in your bottom line will make you wonder why you didn’t start sooner. Here are five more reasons working with a collection partner is a smart move for any small business owner.
It protects you from unwanted collection mishaps
There are myriad laws on the books, both at the federal and state level, that define how and when debts can be pursued and collected. Reputable agencies train their debt collectors to provide professional service that falls within the law, along with high ethical standards. The best collection agencies offer professional service, giving employees the training and resources to pursue these past-due accounts while following the law.
The last thing any small business owner wants is to bumble right into an illegal debt-collecting move, putting the business and their livelihood at risk. Working with the right collection partner can offer protection without breaking the bank.
Collection agencies do more than call
IC System is more than a company that makes calls on your behalf. It can serve as your complete account receivables resource that comes with a suite of optional collection services. While the customer can set limits on when they call, there are other actions a debt collector can take to help pursue the debt. For example, in many situations, your customer’s history of late or non-payments can be reported to one of the major credit reporting agencies, which is often a powerful incentive to get current.
Collection agencies have unique tools
When a customer severs all contact with you — disconnected phone, no forwarding address — collection agencies have resources to help track them down. That’s where skiptracing comes in. Agencies have access to credit reporting tools, public records databases, and more to search for your lost customer and find updated contact information, so you come closer to a resolution.
Collection agencies have time to call. You don’t.
It’s one thing to recommend consistent followup with late accounts. When the late accounts get later — 60 days, 90 days, 120 days — it’s critical to increase the frequency of contact, or you will lose your chance to recover the money. As a small business owner, you don’t have time or staff for that. Turn over these accounts to a reputable agency, and you’ll know the efforts to collect will happen on time, on schedule, consistently. It’s what we do every day.
It adds a sense of urgency
For most people, getting a collection letter or phone call is a huge wake-up call. Additionally, hearing from a collection partner also demonstrates that you are serious about recovering the balance. Bottom line, it’s a powerful motivator at this stage, and as a result, many clients see a big surge in payment.
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About the Author: Brian Eggert
Brian Eggert is a business development specialist and writer for IC System, one of the largest receivables management companies in the United States. With 18 years in the collection industry, Brian's experience includes operations, client service, proposal writing, blogging, content creation, and web development.