Debt can be crippling for anyone and everyone – especially when you’re running a business.
But it’s very common – even the most successful businesses with the most in demand products and services, have outstanding debts.
In many instances these debts come from customers who are not paying their invoices. Sometimes this lack of payment is unintentional and sometimes it is intentional, but either way, if you’re regularly having customers who are not paying you for your products or services, then you have a problem.
But, that’s where a debt collection agency can help.
You might be intimidated by the idea of using a debt recovery agency, and while that is understandable, there are actually many different benefits that you can expect when you do choose to engage their services.
Today, we’re going to tell you why you should opt to reach out to professionals that can assist you in recovering your debts rather than always going it alone.
Why you should work with a debt collection professional
There are plenty of upsides of working with a debt recovery specialist agency, here’s only some of them:
1. You’re going to save time, money and resources
While every business should have an accounts team and processes that can keep track of payments and outstanding payments, many don’t, and those that do, still have to spend a lot of time on these processes.
When a client or customer turns into a delinquent one, your efforts to recover the money is going to take time and a lot of effort when you do it alone. This is time and money that you’re spending trying to recover money that should have been paid, and it’s time and money that you’re losing on being able to do other tasks that your business probably needs you to be focusing on instead.
People often think that because debt recovery is a service that you need to pay for that it is better to try and do it yourself. But, when your initial processes haven’t worked, you’re then spending additional time trying to recover the money, and unfortunately, the odds are often not in your favour.
They are however, in the favour of the debt collectors as they have an invested interest in recovering the money because without the recovery, they are going to get paid. Money and being paid is obviously a very powerful motivator. And given the experience and knowledge of a debt collection agency, as well as resources, they have a lot more avenues they can use to recover that money.
While you will need to pay for the debts that are recovered by the agency, losing a small percentage of that total debt is far more attractive than losing all of it.
And you and your team will have your time back to focus on running your business.
2. A debt collection agency knows the ins and outs of debt collection
Debt collection agencies have to work within very strict legal parameters in their debt recovery efforts. There are no dodgy tactics or anything they are going to get in trouble for. Debt collectors are professionals who have a reputation to uphold, so they work within these rules and understand them very well.
Understanding what you can and can’t do when recovering debts is so important, and often leads to a more successful outcome than if you’re just trying to do it all yourself.
3. A debt collector can help find a solution that works for everyone
Through their many years of experience, debt collectors have an ability to really get to the root of the problem when it comes to why debts have not been paid.
And it’s through this ability and experience that they can often find a solution that works for both parties involved in the outstanding debt – one that results in you getting your money and one that makes it possible for the debtor to actually pay it.
Do you need help in recovering a debt?
If your business is suffering from outstanding payments then it might be time to enlist the help of a debt recovery expert like a debt collection agency.
In Australia, if you have a small to medium sized business, the best team in the debt recovery game is JMA Credit Control. Call them on 1300 664 223 to discuss your needs today.