Don’t Be Afraid to Use a Debt Collection AgencySeptember 18, 2019
You have taken several steps to recover payments from a delinquent customer. Unfortunately, repeatedly sending letters, invoices, and demand letters have been fruitless. Initially, the customer answered your phone calls and emails with promises of payment but is now ignoring you.
You have business expenses to meet and can’t afford to wait much longer. But you feel that you’re out of options. Your in-house collection department doesn’t have the resources to recover this debt and you’re wary of using a debt collection agency because of some common misconceptions. Here are a few reasons why you shouldn’t be afraid to use a debt collection agency:
1. You Can Use Their Services and Still Preserve Your Reputation
There’s a myth that most collection agencies use underhanded tactics to recover payments from delinquent customers. While it’s true that a minority of agencies will use threats, harassment, and other shady methods to collect payments, reputable agencies avoid these tactics. This is because such methods can have them blacklisted.
An ethical debt collection agency will avoid harassing your customer. They will treat debtors with respect and use legitimate options to clear your outstanding AR. Be sure to read this page to learn about some of the ways a good agency will get the job done while preserving a debtor’s dignity.
Usually, official demand letters are enough for a successful recovery. Most people pay reputable agencies because they don’t want their credit score to be adversely affected.
2. You Can Afford Their Services Even If You’re a Small Business
It’s a misconception that only the biggest companies can afford the services of a professional to recover their revenue. On the contrary, many good agencies that boast high recovery rates will work with businesses of all sizes on a contingency basis. You don’t have to pay unless they recover your debt.
3. They Won’t Damage Your Relationship with Old Customers
A fear many businesses have when trying to recover payments from older clients is that a debt collection agency may harm that relationship. On the contrary, an ethical and friendly business that understands your concerns will use a diplomatic tone. They will try to get you paid without offending your customer.
4. There’s Always a Chance of a Successful Recovery
Many businesses decide to write off debt because they believe that they’ve exhausted all options and that there’s no chance of recovering revenue. Although it’s true that debt grows harder to recover with time, it’s never too late. Experienced collection agencies can recover some particularly stubborn debt.
If you can’t find your delinquent customer, then use an agency that boasts a cutting-edge skip tracing department. Such businesses usually employ private investigators who have a wealth of databases at their disposal. Using these means, they can find most debtors.
An experienced agency will also be knowledgeable about local laws. This will improve the chances of recovery if a debtor has crossed state lines – where different tactics are required. Of course, many agencies will also have a legal team that can litigate as a last resort.
These are some of the reasons why you shouldn’t be afraid to use the services of a debt collector. Recovering revenue is important for the wellbeing of your enterprise. Ignore the myths and partner with an agency that gets the job done.