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The Best Reasons to Use a Debt Collection Agency

The Best Reasons to Use a Debt Collection Agency

The Best Reasons to Use a Debt Collection Agency

Every business understands the issues that non-paying clients can present. Cash flow is put at risk, as is the rest of the business and its financial obligations.

During the Covid-19 pandemic, there was a rise of 6% in corporate debt, a figure of £79 billion in total.

This statistic highlights that collecting debts is a business necessity. Making sure your debt collection process is as effective as possible is crucial.

Many businesses opt to recover payments themselves. This is often a time-consuming process, and in many cases, unsuccessful.

Credit control teams and accounting staff have a limited number of enforcement options. Whilst good preventative measures can be implemented, debtors can go to any length to avoid paying what they owe.

It is critical that the debtor is made to pay the debt. Doing this in the right manner provides your business with a great number of benefits.

In most cases, UK companies will eventually choose to outsource the collection of their debt to a professional. This could either be through court action or by using a professional debt collection agency.

Before committing to a certain course of action, it is a good idea to consider every option available.

In 2022, the use of a debt collection agency is widely considered to be the best choice for when owed money.

We asked our team of experts to help outline some of the key benefits when businesses use a debt collection agency.

The Best Reasons to Use a Debt Collection Agency | Get Expert Help From Debt Collectors Now

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT

The Best Reasons to Use a Debt Collection Agency

Low Cost

A concern for many companies that want to use a debt collections agency is the potential cost.

Whilst perception is an expensive solution, reality is very different.

Most agencies provide a low-cost service, which enables as many people to benefit from it as possible.

Many debt collectors will offer no win, no fee deals, but this is often a front for hidden costs later on. With this in mind, you should always research the agency you are considering before committing to use them.

Federal Management’s commission rates begin from as low as 8%, making us one of the most cost-effective choices available. For more information, speak with one of our advisors today.

You can Concentrate on Helping Your Clients

It is common for businesses to attempt debt recovery themselves. This process involves credit control teams and accountants chasing payment themselves.

Phone calls, emails and letters are sent in an attempt to recover the debt.

Unfortunately, this is often ineffective, and these teams are left with few options when a debtor ignores them.

As well as this, the rules and guidance for debt recovery are often unknown to these internal teams. This may have the effect of causing separate issues relating to the debt.

Once a debt has been passed over to a professional, the agency working on your behalf will handle everything. Federal Management provides a complete service and allows the original creditor (your business) to concentrate on their clients.

It Reminds Clients to Treat You Fairly

Every business owner and accountant knows of the tricks and tactics late and non-payers can use. Regardless of the type of debt, attempts will always be made to “beat the system”.

Instructing a debt collection agency lets your clients know that you are serious about getting paid.

A professional debt collector like Federal Management will handle all cases properly and fairly. The perception of debt collectors has it so that they are a “last resort” solution, but the reality is very different. Agencies provide a professional service, which can be firm or sensitive as the situation requires.

As well as this, Federal Management is approved and authorised by the Financial Conduct Authority (FCA).

Prudent business people know that this is the best solution, as future business opportunities can be beneficial.

Reasons To Use A Debt Collection Agency

Experience and Expertise

One key benefit of the use of a debt collection agency is their skills, knowledge and expertise.

A good debt recovery agency will have a proven process of effective debt collection.

Their success depends on their skills, and without sufficient experience, they would never be able to recover a debt.

Professional debt collection agencies are experts in their field. Federal Management, for example, is widely regarded as the UK’s leader in commercial debt recovery. As well as this, we are also known as the leading international debt collection experts in the UK.

Sophisticated and Effective Service

Debt collection agencies are experts at recovering money for those that are owed it. This is achieved through specialist and dedicated processes.

Federal Management has always taken steps to improve and enhance our recovery process throughout our history.

As such, cutting edge systems and enhancements are constantly implemented to help us deliver the best service possible.

Should You Use a Debt Collection Agency?

If you are owed money by a non-paying client, it is always better to use a debt collection agency.

Federal Management recovers millions of pounds worth of unpaid debt year on year.

If your business is owed money, speak with one of our friendly experts now.

The Best Reasons to Use a Debt Collection Agency | Get Expert Help From Debt Collectors Now

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT

The Best Reasons to Use a Debt Collection Agency – Frequently Asked Questions

How much does debt collection cost?

Each individual case is unique, and a correct price must be determined by an expert. Speak to us now for more information.

What should I look for when choosing a debt collection agency?

You should look at customer reviews, accreditations, and evidence of a proven recovery process. Contact the agency in question to find out more.

How successful is debt collection?

Federal Management has an average collections rate of 90% and above on all undisputed business debts.

Can foreign debts be recovered?

Yes, Federal Management can recover debt from virtually anywhere in the world. Speak to us now for more information.

How long does it take to recover a debt?

Depending on the case in question, recovery times can vary based on its complexity. Speak to one of our advisors for more information.