Free up your valuable time to generate more leads and revenue
Entrepreneurs from any part of the world no matter the size can get assistance from outsourced collectors. Whether you are in the service industry or extend credit, there comes a time when your debtor that promised to make payments, do not honour that promise. Check your balance sheets under the description bad debts and see for yourself, not the clock is ticking on your days outstanding. As soon as you realise your credit controller is not succeeding in her in house collections strategies, think of outsourcing to debt collectors. The longer the debt is unpaid, the less likely it is to ever collecting it, note that collection from hereon can be costly.
Here are some of the benefits:
In some companies, salespeople do not receive their full commissions until all monies are received from clients, thus forcing sales people to spend at least some of their time working in an accounting function. Not only can this lead to confusion and deterioration of relations with clients, but the unfortunate outcome of this practice is that every minute spent collecting is a minute spent not generating future revenue.
Keep the Door Open for Additional Business from Existing Customers
Retaining existing customers is generally much less expensive than acquiring new ones. By hiring collection agencies, companies distance themselves from the role of bad cop when existing clients are reluctant to pay. The first notice from a collection agency may be enough to spur the customer into action while allowing the relationship between the parties to remain cordial or neutral.
Work with, not against, Prevailing Business Practices
One way companies manage cash flow is by holding payables as long as possible. Every company has a philosophy, if not an actual written policy, about when to pay their bills. Sometimes the philosophy dictates that bills are not paid until creditors demand payment in terms that are stronger than a monthly invoice. A letter or a call from a collection agency is often the trigger for a check to be released.
Save Money by Paying Only for Results
When receivables are significant, there may be a dedicated collections person who is paid a salary regardless of how much bad debt is recovered. Many commercial collection agencies are paid only when they collect, so companies using collection agencies can often save the expense of salaried employees.
Since banks review balance sheets when deciding to make loans or extend lines of credit, it is important to have as small an amount of old receivables as possible, while at the same time extending credit to new and existing customers to fuel growth. By implementing a policy of collecting early and regularly through neutral third party collection agencies, companies keep their customer relationships and their books healthy while improving their credit worthiness.