As a debt collection expert, I see many businesses struggling with managing their accounts receivables. Many also lack the time, resources and expertise to quickly and efficiently recover unpaid debts themselves. The reality is, recovering debts can be time-consuming, expensive and inefficient if you lack the relevant expertise and the right tools. This is why smart companies are discovering the benefits of outsourcing the task of debt recovery to a professional debt collection agent.
6 reasons why you should outsource debt collection to a debt recovery professional:
- Reduce costs
Accounts receivable staff are no longer required and this will save you considerable costs for labour and associated costs. The costs of outsourcing debt collection are minimal. Most reputable debt collection professionals have a “no win-no fee” basis of service and some even have free legal letters of demand thrown in.
- Increase your recovery rate
This is the no-brainer. A debt collection professional will be able to get a much higher hit rate on recovering your outstanding debts. Debt collection companies can act as an extension of your brand, taking over the entire accounts receivable function, getting your invoices paid faster and with a higher percentage of success. Most debt collectors act on a commission basis, so we have the profit incentive to collect your debts. If you don’t get paid, we don’t get paid!
- Good Cash Flow
Timely collection of invoices improves your business’ ability to maintain a positive cash flow. Outsourcing debt collection means you can spend more time working on other parts of your business whilst a professional takes care of all this for you.
- Get your credit terms right
A good debt collection company can help you set terms of trade that are clear and beneficial to your business. They can ensure you have penalty clauses built into all our credit documents, allowing you to also recover your debt and/or legal fees. Download our DRA’s Free Credit Control Pack and take the first step in managing your accounts receivables and improving your credit control.
- Good Client Relations
Client relationships are key to keeping your business operating. Outsourcing your debt collection to a third party will ensure that your conversations with your clients are limited to the goods and services you provide, rather than worrying about if they are behind in payment. Collection agencies employ people who collect debts for a living, yes we do exist and we love what we do! We actually like our job so we strive to keep our clients a happy as well as the customers who owe money. A well established debt collection agency can build rapport with your customers and create respect and discipline, around credit and accounts receivables.
- Frees your time to do what you do best
Outsourcing debt collection enables you to focus 100% on your customer – providing the product or service you have promised them and ensuring they are happy. This should be where your time and energy is concentrated as this is what you do best. The burden of chasing those outstanding invoices is taken off your shoulders, allowing you to minimise the distraction that was once debt collection.
Debt collection companies do just that: collect debts. It’s our bread and butter so you can be assured that we will look after your accounts receivables, as if they are our own.
Working with a collection company will see your late payments and non-payments significantly reduced as they solely focus on monitoring and collecting your receivables. Outsourcing not just the collection, but the monitoring of your overdue invoices will ensure this stressful and time consuming task is handled by industry experts.
Don’t know how to start? Contact Us!
Outsourcing credit control can often be much cheaper than hiring your own staff. Simple and easy. Call us today 1300 799 820 or email us at firstname.lastname@example.org.
|About the Author
Adam Stewart is a Debt Collection Expert and owner of ADC Legal Litigation Lawyers, a legal practice specialising in commercial advice and litigation, debt recovery and insurance claims recovery disputes. For more information, email us at email@example.com or call 1300 799 820. Talk to us about your litigation or dispute concerns via Skype at adclegal.