If you’ve run your own business for even a few years you have a handle on the many challenges you have to deal with day in and day out.
Probably the most frustrating one, at least for me (and possible for you as well?) is dealing with a customer or client who owes you money for services rendered.
And I’m not talking about the all-too-often delay in getting a check 30 to 45 days after sending out invoices, either.
Now doubt you’ve been there too, right?
Faced with this situation you choices are to handle collections in-house with 2nd and 3rd notices, writing off the debt should your own efforts fail, or contacting a debt collection company to handle this for you.
Ways to improve your business collections
Let’s face it, not getting paid for work you’ve completed for clients or customers is frustrating. And to make matters worse handling your collection efforts in-house can be just as frustrating, perhaps more so, since it:
- is a drain on your time
- is a waste of your resources (i.e. staff diverted from critical tasks)
- it takes skill and the proper method to collect the money
And if that’s not bad enough you have to comply with all state and federal collection laws to boot. Even one slight mistake on your part can find you on the wrong end of a lawsuit.
For this reason alone it makes sense to hire a collection agency.
Without questions emotions can get in the way of clear judgment when it comes to chasing after people who owe you money. In fact, recently my attorney had to calm me down because I got so upset when a client refused to pay.
Does that make me a jerk because I got angry about an unpaid invoice?
Of course not.
So I totally “get it” if the idea of sending a collection agency after somebody seems a bit distasteful for you.
But what else can you do? If second and third notices in the mail are not getting your customers or clients to open up their checkbook or wallet, you are really left with two choices:
- write off the debt/balance
- get professional help
Now, it’s true that not all collection agencies are the same. So how can you know you found the right one for your needs?
It begins with asking the right questions.
For example, here’s a list of questions you should consider when looking to hire a collection agency:
- Are they bonded and insured?
- What collection methods will they use?
- What is their track record/success rate?
- What’s feasibly you have to pay?
- Have they worked with businesses like yours before?
- Approximately how much of the total balance will they be able to collect?
- Do they have testimonials or case studies that they can share with you?
Only by doing a bit of due diligence can you find an agency that will be a good fit for your business. And then you can let them handle your collection headaches for you, rather than diverting in-house staff to do something they’re not trained to do, or like doing.
Does that make sense to you?
Find a debt collection agency today
To find a collections agency that specializes in helping business likes yours, simply request a free services quote from qualified and reputable companies.
Click the link and compare free collection agency quotes today.
This way you can save time, money and aggravation by hiring a professional who can help you collect some (or all?) of your outstanding accounts receivable.
After all, when you get down to it you really have two choices:
- you can keep doing what you’re doing (and hope for a different result), or
- you can find a commercial collections agency that can help you recover what’s rightfully yours.
Either way it’s your money… you decide.