Entrepreneurs, specialists and CEOs who operate companies did not open their respective businesses to collect on past-due accounts. Each started their business to provide a good or service to fill a need. Often, there is not sufficient time, resources or understanding of the best way to collect on past-due payments. Many wonder:
- How soon after the first invoice do you send the next?
- When do you call?
- What do you say?
- How do you protect the relationship you worked so hard to build?
- Are there laws regarding collections?
As a result of unanswered questions, lack of processes and time, many debts go unpaid and ultimately factor into business failure. Company owners can lose traction while trying to split time between managing a shortfall of cash flow and collecting on past due payments while also attempting to concentrate on operating and growing their business. This is when companies should rely on the experts at collection agencies to recover delinquent accounts.
A company who must send their clients to collections no more wants to do so than the customer wants their account sent. Unfortunately this step is sometimes necessary. When a business or company provides credit for goods or services they expect to, and should, receive payment. Multiply the effect of bad debts, late payments, slow paying and non-paying customers across thousands of businesses across the country and it is easy to see the negative impact this could have on the total economy.
A debt collection agency can assist in recovering debts and improving account receivables so business owners and operators can focus their energy and time on growing and running the business. Collection agencies possess the systems, resources and trained personal to improve cash flow. A good agency will have researched and studied consumer behavior and know the proper steps to take when dealing with the different types of debtors many companies and businesses encounter today.
When selecting a collection agency, make sure they are compliant with the varied and ever changing state and federal regulations that govern this highly-regulated industry. The wrong choice in a collection agency could result in large fines as a result of negligent actions with regard to state and federal regulations.
What’s your biggest collections challenge?
When it comes to recovering past-due accounts, what is your biggest concern, issue or challenge? What is one thing you’d like help with or more knowledge on? Share your thoughts using the comment section below and we’ll do our best to address your situation!