Sometimes your business needs to collect on past due accounts. You call and call your client. Either they don’t pick up, tell you a sad story and outright refuse to pay, or tell you that they won’t pay at all. How do you collect from clients who you can’t reach or refuse to pay? If you’ve done all you can, it’s time to bring in a profession debt collection agency. Using a professional debt collection agency includes advantages and disadvantages. It’s important to carefully think it over before outsourcing your collections work to a professional agency.
Advantages of Outsourcing Your Collections
Save time, money, and resources. As a business owner, you stay busy. Time equals money. Resources can be easily exhausted. Outsourcing your collections work to a professional debt collection agency can save you time, money, and resources. It can also save you the hassle trying to track down a client who disappeared without paying. The time you will save can be used to grow your business. Your resources can be used for other pressing matters. There’s no need to hire someone to work in-house and ensure that they are properly trained to follow federal and state collections laws.
Collect on debts. A professional debt collection agency may be able to collect on debts that you can’t. When your client does not pay their invoice and becomes delinquent, it can be hard to get them to pay up. However, a professional debt collection agency has an advantage. They are more confident, assertive, and consistent. Because they understand collections law, they may have more luck (and time) to collect on your behalf. They don’t stop until they’ve exhausted every avenue. Even then, some may take legal action on your behalf against your client.
Professional tools at their disposal. Professional debt collection agencies use specialized and have various advanced tools available for them to use. They can contact your clients who owe you to get them to pay. They have third-party sources that enable them to find your client’s information and contact them, no matter if they have skipped town or simply won’t return your phone calls.
Disadvantages of Hiring a Collection Agency
Expense. One disadvantage of outsourcing your collections work to a professional debt collection agency is the expense. Prices vary with each agency, as do the types of fees. You may need to pay a flat rate or a percentage of what they collect for your business. Outsourcing can be an investment for your business, but only if you choose carefully.
Can negatively affect client relationships. Outsourcing to a professional debt collection agency can cause a negative reaction from clients in default. Your clients may become scared that you might turn them in to a collection agency if they miss a payment or need a payment plan. You could lose business if you use a collection agency; this is particularly true if you choose one who doesn’t have a positive history on how they work with defaulted account holders. You should keep this in mind when considering a debt collection agency.
Need Collections Assistance? Choose Clients ARM
If you need to collect a debt from your client, it’s time to contact Clients ARM. With over 30 years of experience, Clients ARM provides top-notch service to our clients. We use old-fashioned customer service values and innovative technology to bring the best services to our client’s clients. We provide first-party and third-party collection services as well as other services such as customer service and accounts receivable management. Contact Clients ARM today to see what we can do for you!
