If your business is growing with time, it is very important that you outsource certain tasks to a third party for better performance and effect. One of the major tasks which you must outsource is collection of due payments from customers or debt collection. You must have heard about several debt collecting agencies from owners of other companies, or came to know about them from the internet, but it is high time that you apply this for your very own company. If you have a business, you will have debtors who are just too negligent and stubborn to make the payment on due time. These two almost go hand in hand. And I am sure that you might get frustrated as well after a series of phone calls, follow up e-mails and letters. Agencies have their own set of methods and tactics, which work really well in the course of collecting payments.
It is a great initiative that will favor your business and you know the best part? No collection means no fees. They generally collect a percentage of the fund they recover. So, think of the profit you are making. They wouldn’t charge anything if they cannot recover the payment for you. So, instead of cribbing over these stubborn payers, and finally writing the debts off in your books of accounts, hire an agency. But make sure you clarify all your doubts regarding the commission they charge and their method of work prior to appointing them. Here are some of the facts which will convince you that hiring them is much better an option than doing it yourself or appointing an internal team for the same.
- Acute knowledge of Customer Rights Violation and other laws: Only an expert in this field will be able to know all kinds of legal issues, which is not possible by a layman. Sometimes customers play the card of violating customers act and win the case in the court of law. And thus sealing the loopholes is very important. Make sure that your agent is well experienced in this field and a few successful cases in his file.
- Get your collection sooner: Somehow, customers take this as a threat or a warning and tend to pay earlier if they are contacted by third party debt collection agencies. It is better than you do not keep any account unattended for a long period of time because that will not only make the collection harder, but also agencies will charge more for an old account. Handle them over to agencies at the earliest, so that they can treat the accounts properly as well.
- Standards and integrity are maintained: If you entitle this task to any employee, it is very likely that they wouldn’t be able to maintain the standards and integrity, because of lack of patience. But collectors know that they have to hold the patience for such stubborn customers, and they have to maintain certain standards. And as an owner, you might like to sell your product or service to them again or at least ask them for reference. Retaining existing clients are anyway a lot easier than getting new ones. So it is very important that the relationship does not get majorly affected.
- Maximize revenue amount: In many companies, there is a norm that salesmen will not get their share of commission until and unless their target is achieved. This will lead them to follow up with consumers on a regular basis, thus deteriorating the relationship. As a result, revenue will decrease automatically.
So, now you know why handing over this responsibility to a third party agency is much more fruitful. Don’t delay and search online for reputed debt collecting agencies at the earliest.