During a good economy or a slow one there are times when you need to collect on outstanding invoices.
For example, 2009 was when I had the most customers fall behind on their invoices. Or decide they they couldn’t pay them at all.
Some I settled with, accepting a portion of what was owed rather than getting nothing. But for a few others it was time to get professional help. And since my clients are other business owners, that means using a B2B collection agency.
Three reasons for using a B2B collection agency
There are times when a business can benefit from hiring a commercial collection agency.
In fact, here are 3 reasons for outsourcing your collection efforts…
1. Time and resources
Most businesses don’t possess the necessary resources to handle this effectively in-house. This includes spending (wasting?) your time, expertise, and access to skilled manpower, to pursue bad debts.
Additionally, think about compliance.
Applicable collection laws must by adhered to, and failure to do so could land you on the wrong end of a lawsuit. By outsourcing your collection efforts you effectively shift liability away from you and your company.
2. Experience and training
Do you like making collection calls?
Do folks on your staff enjoy doing this as well?
Most likely the answer is “no.” However, by outsourcing your collection efforts you no longer rely on “hit and miss” efforts and instead put a proven system to work for your company.
For example, most collection agencies:
- use trained staff to make collection calls
- are able to investigate the defaulter’s assets
- use tools like skip tracing to track down former customers or clients
- specialize in working with certain businesses or niches
- have a proven track record of success
Their skilled and experienced employees know how to contact your current or former clients in a way that helps you collect some, or more, of what you’re owed.
Collection agencies can charge a mix of flat and variable fees.
The variable fee will be a percentage of outstanding debt, or on the amount collected on your behalf. The fixed fee is required for legwork and information gathering. Many agencies offer “no collection, no fee clauses,” and this can really save cash for the business.
Look, the bottom line is this…
Keeping the lights on means you need to service existing customers or clients and focus your efforts on generating new business. And these tasks often suffer when you’re spinning your wheels trying to collect what is rightfully owed to you.
So why waste any more time and effort. Isn’t it time to…
Find the right collection agency today
Save time, money and aggravation by hiring a professional who can help you collect some (or all?) of your outstanding revenue.
Click the link and compare free collection agency quotes today.
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 collection agency that can help you recover what’s rightfully yours.
Either way it’s your money… you decide.