subject: 4 Ways Collection Agencies Can Improve Profit Recovery [print this page] 1 Freeing Staff and Resources 1 Freeing Staff and Resources
When your customer is 60-90 days past due it becomes time consuming for your staff to call and send correspondence when they can be focusing on new and existing, current, customers. Using a professional collection agency frees your staff from this and allows them to concentrate on those current or future customers helping your business to grow. Additionally, collections regulations are increasingly complicated and ever changing, and your staffers, without proper training, can easily cross a line.
2 More Current Information
Debt collection companies have access to current address information and collection software that other businesses typically dont. If the consumer moves, in-house efforts usually fail, but services like skip tracing (locating the consumer) are standard for collection agencies. Collection agency employees are well trained and experienced in the most effective ways to locate and secure payment for you.
The best time to collect is now. The longer you wait to decide whether or not to use a collection agency, the collectability of your delinquent debts goes down. The balance of the debt, your expenses in trying to collect, plus lack of focus on new and existing customers, is money that might be entirely lost because of ineffective collection procedures used while the debt ages.
3 Making Your Debt A Priority
Communications from a third party debt collection company are less likely to be ignored. Youre showing that your business means business! Collection letters and calls also clearly inform the debtor what the next steps are whether that be credit reporting or the potential of litigation.
4 Avoiding Legal Pitfalls
Laws and regulations protecting businesses and consumers must be followed even if the business is collecting for itself. Your customers that are located in different states may have different rights. Privacy and healthcare acts can also affect how a business collects. Reputable collection agencies should be well versed and experienced in complying with all state and federal laws.
After all, you really have two choices:
1. You can keep doing what you're doing (and hope for a different result), or
2. You can hire a professional collection agency that that can help collect the money you are owed.
