Why use a Debt Collection Agency for your Business?
Why use a Debt Collection Agency?
Is your company’s cash flow struggling due to non-paying customers?
Well, it will not surprise you to find out that you certainly are not on your own. Most companies do have problems getting paid when they provide a service or product to a customer with 80% of small businesses in the UK suffering as a result of late or non-payment according to recent reports.
It costs you time, money and resources, and it hurts when that service you have provided in good faith goes unpaid. This is a paradigm of modern business, but one that does not necessarily have to hold you and your enterprise back.
Beware of the dodgy ‘No win – No fee’ brigade and do your homework!
When somebody says “Our service is risk-free”, take that claim with a pinch of salt. Of course, there is a risk! – the risk of your business brand, the debt value itself and not to mention your liability for the actions taken by any purported DCA.
No Business can operate for free, but you know this already. An ethical company will never make ‘too good to be true’ or false claims.
On a positive note, there is greater transparency in the UK Debt Collection these days and most credible DCA’s are licensed by the Financial Conduct Authority.
Employing a Debt Collection Agency (DCA)
You may not have considered instructing a Business debt collection agency to act on your behalf in recovering monies owed, because you may have thought it was maybe a little ‘heavy-handed’, but once the misconception of how a reputable DCA operates has been dispelled, it soon becomes apparent that it is possibly the best option available.
So, with that in mind, here are 6 tips on why a quality debt recovery service is the best option when addressing this spiky issue:
Tip 1 – No Collection – No Costs
Most debt collection firms operate on a basis that means if they do not collect, then you do not have to pay any collection costs. Compared with conventional methods of chasing payment, this is a very cost-effective way of resolving matters, as no expensive solicitors are involved.
For a Premium Debt Collection service, there may be an instruction fee which is can be claimed back on your behalf and results in a fully inclusive service with no hidden fees. You should also receive a much lower commission payable on collection.
Tip 2 – Businesslike, Professional Approach
The days of aggressive ‘strong-arm’ tactics used to scare clients into paying are a thing of the past. Whilst being necessarily direct to achieve their goal in good time, a reputable collections officer will be compassionate and understanding to the debtor throughout the process.
Tip 3 – No charge per hour
Dealing with most collection professionals is extremely simple. There is no ‘fee earning’ and most will not charge ‘abortive fees’. There is an end goal and a usually commission payment of usually between 10-20% to the agency upon achieving the end goal – getting you paid.
Tip 4 – All Cases Considered
There is no snobbery in the debt collection industry. No matter who you are, if you run a legitimate business that is owed money, then your case will be taken on its merits.
Tip 5 – Experienced Collectors
A reputable and accredited professional collections officer will have been employed for their compassion, understanding and knowledge of how businesses operate. They are not paid thugs, rather an extension of your business and they will and should act accordingly.
Tip 6 – Speedy Resolution
In addition to being cost-effective, the work a DCA does for your company is very quick compared to traditional litigious methods.
So, there you have it. Using Professional and reputable debt collectors can mean the difference between a business that dies on its feet due to bad cash flow and one that thrives because it gets paid on time.
Bit of a no-brainer, wouldn’t you say? For free information on how you can benefit from a Professional cost-saving Debt Collection service, call Federal Managemen now for a free appraisal.