Top Myths About Working with a Collection Partner Dispelled
Businesses of any size might be reluctant to turn to an accounts receivable partner for a host of reasons. Here are three (debunked) myths about working with a third-party debt partner, and details about how working with an agency can boost your revenue.
1. Debt collectors are only for extremely late bills.
This is not so. As your receivables age, the likelihood of recovering payment diminishes, which of course shrinks your revenue. A good collection partner can help you proactively recover your aging receivables even before it’s time to hand them over to collections, between 60 and 90 days past due.
2. They will create a negative experience for my customers.
No one likes getting the notice in the mail. Even if they owe the money, that alone can set off strong emotions of embarrassment, anxiety, and anger. That is why a good collection partner understands that and treats your customers with dignity to preserve the customer relationship.
For more than decades, federal law has required collection agencies to follow specific rules when it comes to contacting customers. Middle-of-the-night phone calls, threats of jail, and humiliation are just some of the tactics that are downright illegal. Debt collectors are also required to cease contact at the consumer’s request. Even so, a business owner who puts their customers first might have concerns and that’s understandable.
Here’s something to put those concerns into perspective. Consumers logged over 700,000 complaints to the CFPB last year. But at the end of consumer interactions, IC System asks consumers to take a satisfaction survey and tell us how we did. When consumers in collections are asked, “Are you satisfied with how IC System is handling your account?” In response, over 95% of consumers have said “yes.” Consumers were also asked, “Did our representative treat you professionally?” More than 99% of consumers responded that they feel IC System treated them professionally.
3. Debt collectors are too expensive.
Admittedly, some agencies are priced to attract larger clients. But small businesses are just as entitled to receive payment for their services or products. That’s why IC System offers several plans for businesses of any size, which means a small business with just a few accounts receivable on the books will find an affordable option.
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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.