There isn’t a company on Earth that can afford to forego the money they’re owed. Margins are tight, and they all have expenses to pay off. Even thriving companies need money in their accounts, where it should be, to stabilize their finances and have a basis for accurate long-term planning.
However, recouping debts can be challenging. It takes time and money, and the effort doesn’t always work. It’s possible to lose money chasing debts, which is salt in the wound.
Here are four reasons why hiring a professional debt collector is wise.
More Money, Sooner
Professional debt collectors know how to locate debtors and assets sooner and which buttons to press to make them respond. When hiring a debt collection agency with a licensed investigator running their skip tracing department, they have experience and extra resources to help them find people, even if they change their name.
They will file a prompt report to the major credit bureaus, which changes a debtor’s calculation. Once they realize that securing a loan in the future will be harder and more expensive, they will be way more likely to pay off the debt.
No Burned Bridges
Asking for money can be an invidious task, even, or perhaps especially, when it’s owed. Nobody wants to feel the pressure of being hit up for money or the shame of having failed to pay.
The best debt collectors are trained to be friendly and genuinely helpful. They don’t judge debtors or use aggressive tactics like robocalls, late-night calls, or threatening language. Instead, they try to find the best way forward for both parties.
As a result, companies won’t alienate their customers or partners, making it much easier and more likely to do business together in the future. Thankfully, there’s no evidence that using harsh collection methods leads to recouping more debt. In fact, the friendliest debt collectors in the US collect nearly double the industry average.
Niche Collections
Collecting debts in certain industries requires specialization. For example, medical patients are ethically and legally entitled to confidentiality, and breaching HIPAA legislation can result in costly fines, lawsuits, or negative publicity.
It’s important to find a debt collector with experience in your specific industry so they can navigate the waters smoothly.
It’s important to find a debt collector who treats debtors well, as well as their clients! They shouldn’t try to hide fees in legalese or make their charges difficult to understand. There shouldn’t be any minimum costs, either.
Their fees should be upfront and clear, so you can go back to running your business instead of worrying about escalating debt collection fees or looking backwards trying to recoup the actual debt.
Business leaders have enough challenges on their plates without worrying about recouping money they should already have. However, debts can’t be ignored, either. Hiring a pro to collect it for them saves them time and money, retains relationships, and frees them up to focus on what they do best.
