“There are a number of perfectly logical reasons why a debt collection agency is a must for any business.”
Every single business owner knows that some customers or clients will neglect to pay, and it can be one of the most difficult things to deal with as a business owner. And getting these debtors to settle their debts can be equally frustrating, and sometimes next to impossible. It is therefore smarter to just hire a debt collection agency, which are more often than not enough to convince people to pay their debts. There are a number of reasons why debt collection agencies are so effective, such as:
People tend to become uncomfortable when a debt collector contacts them. First is that they know that their credit history will be affected negatively, which makes it difficult for them to secure loans in the future or apply for financial-related services, such as a credit card. Additionally, collection agents are very knowledgeable when it comes to the legal options given to creditors if the debtors don’t pay them back. These are usually enough to make debtors uncomfortable enough that they’d be more willing to work towards settling their debts.
Debt collections agencies tend to have a wide range of tools and resources that can be used to track down debtors who are fleeing and/or hiding. They have experienced people who can track down and contact even people who have seemingly disappeared without a trace. These particular resources and skillsets are beyond the capabilities of most businesses, which make debt collection agencies valuable.
Debt collectors from reputable agencies are trained to make collection calls that are neutral and non-intimidating, which work well because it doesn’t put debtors on the defensive and make them more willing to work with the agency on settling the debts. This kind of capability is usually absent from your business’ employees, who aren’t really trained in the field of debt collection. This is particularly true for agencies that have been around for a while, as they are more than likely able to hire and train many experienced debt collectors who have had years to hone their collection technique in order to maximize success and devote their full attention to debt collection. It also helps that these collectors are specifically tasked with just debt collection, and as such are not prone to distractions. They are simply more efficient at collecting debts.
Many businesses think that a debt collection agency is an added and unnecessary expense, mainly because of the cost of hiring their services. But the truth is that even though the business loses a bit of money due to the fee of the debt collection agency (which can either be a retainer’s fee or through connection), they still gain more money compared to trying to collect on the debts themselves. An agency will be able to collect on debts that would have otherwise remained unpaid, and they will also save you on manpower costs as well as time.
Based on the reasons above, there really is no good reason why a business owner shouldn’t get a debt collections agency to collect debts on your behalf.
Joan Geller a veteran in the business debt collection industry, having worked almost a decade as a debt collector before being promoted higher up the ladder. These days, she works as a consultant for different debt collection agency.