Is It Time to Use a Small Business Collection Agency?

You don’t need me to tell you how time-consuming it can be running your own business day in and day out.

Or how frustrating it is chasing customers for payment AFTER you have already completed a job for a customer or client.

And these days more than ever it seems that more and more people are playing the “check is in the mail” game, or stretching net 30 day billing to 1 or 2 months past due.

So what can you do if 2nd and 3rd invoices haven’t gotten the job done?

Maybe it’s time to use a…

Factors affecting small business collections

Why outsource you collections process? Here are three reasons to consider:

1. Time
2. Efficiency
3. Money

Running your business takes up enough of your time. And even if you have staff or administrative assistant to handle the follow up invoicing, billing or collection calls, they are better used to handle the duties for which they were hired.

Plus, many times your employees sympathize with the people you are trying to collect from.

It’s true.

Additionally, the best way to get paid is to follow a proven, tried-and-trued method. Any collection agency you speak with about your billing headaches should be able to present to you some data or statistics about their success rate when it comes to collections.

Finally, time is money.

You don’t need me to tell you that. Many collection agencies don’t get paid unless they collect on outstanding bills for you. In other words, you literally have nothing to lose, and everything to gain, by hiring the right collection agency.

If you think that it’s about time to consider using a collection agency, ask a lot of questions.

You may want to ask about fees, the collection process (how they will contact your customers), how the agency reports to you on its collection efforts and if a personal representative will work with you and your business.

Does that make sense?