To keep your business afloat, you need positive and regular cash flow. However, it is not always easy to keep your finances in check. Firstly, you have to manage your daily expenses and ensure they do not go over your actual earnings. Secondly, at some point or another, your business has to have an encounter with overdue accounts and slow payers, especially if you trade your goods or services in credit.
In an ideal setting, you would get your payment the moment you deliver your services. However, it is seldom the case. Business owners often have to deal with the pile of unpaid invoices. As these debts get older, collecting payments from your customers becomes more challenging.
If you have been struggling with receiving due payments even after repeated demands, it’s time to take professional help. Businesses can take assistance from debt recovery agencies that handle the debt collection process more efficiently.
Let us understand the reasons why a debt recovery agency can be the best solution for successful and fast debt recovery –
5 Reasons to Work with a Debt Recovery Agency
1. Professional Experience
Every business is better off with its core business function. Just like you have expertise in your business industry, debt recovery agencies are proficient in collecting unpaid debts. Your primary objective is to run your business successfully. Hence, even though it is a vital part of your business, debt collection can take a backseat.
However, professional debt collection agencies have the skills, resources, and required knowledge to ensure fast debt recovery. They work with trained and experienced professionals who are well-versed with industry methodologies and processes. The agency put its best techniques into action to coerce debtors to pay. Moreover, they post a much greater threat to debtors than you do.
2. Flexible Processes
Every business has a specific set of needs that it can’t adjust when it comes to recovering unpaid debts. Debt recovery agencies understand this and hence, offer a variety of programs that fit with different business models. You can choose the plan that best suits your business.
Some debt recovery agencies offer to pursue debtors for a flat fee, others ask for a commission on the amount they successfully collect. You can decide the business model you want to choose based on your budget allocations.
3. Legal Protection
One of the many reasons why fast debt recovery is a challenging process for businesses is that there is a myriad of laws that govern the debt collection industry. These laws and regulations vary from state to state and control how commercial debts should be pursued and collected. If a law is broken, well-informed customers do not hesitate to take action against you.
Debt recovery agencies are well-aware of all the laws and regulations in various states and know how to find their ways around it. They ensure their staff works on ethical grounds and do not make a rookie mistake that can drag your business to legal courts.
4. Effective Recovery Tools and Methods
When you take debt recovery into your hands, you do not have more than one or two methods to go about it. However, since debt collection agencies have been in the business for years, they know that every customer can’t be pursued with the same recovery method. Hence, they have access to a wide variety of tools and strategies to ensure efficient and fast debt recovery.
Collection agencies have several ways to connect your debtors. They have access to public records databases, credit reporting devices, and other resources that make communicating with the client easier. It’s not uncommon for debtors to try to avoid or eliminate contact with your team. However, agencies keep methods up their sleeves to deal with such customers.
For example, if debt collectors can’t reach them through their contact numbers or emails, they can use skip tracing to track down the client.
5. Detailed Documentation
As we mentioned, debt recovery agencies adopt a professional approach to their process and implement a well-thought-out strategy. They like to be proactive and hence, keep detailed records of all contact they have with debtors. While it may not seem productive at the time, it proves extremely beneficial and handy if you decide to take things to court.
Such thorough and detailed documentation strengthens your case. It shows that you have given your debtor considerable time and opportunity to clear their debts, but they failed to cooperate. Moreover, these documents are also useful if you decide to claim bad debts as tax deductions.
6. More Focused Efforts
Debt recovery agencies have just one goal – to collect or recover your debts from your customer within a given timeline. Hence, they dedicate all their time, energy, efforts, and money towards achieving this goal.
On the other hand, your business has some other goals that you need to focus on. Naturally, you dedicate all your resources towards achieving this goal. In the meantime, you try to divide your attention to recover debts.
Since the debt recovery team puts in undivided and concentrated efforts into debt collection, they have a higher success rate, and their action results in fast debt recovery.
7. Saves Time and Money
As a business owner, you have several responsibilities on your shoulders. It is, therefore, impossible for you to handle debt collection. Even if you do so, it will distract you from operating your core business activities.
If you decide to build an internal team and delegate the debt recollection, hiring individuals and training them is a time-consuming task. It comes along with the responsibility to allocate more resources and budget to provide tools and infrastructure to the team. Even after all this, you have no guarantee that you will get your debts back.
A debt recovery agency saves your time and money and allows you to focus on your business.
Struggling to get your owed money back is no fun. Hire a professional who can ensure not only successful but fast debt recovery.
Resolute Debt Recovery is a leading and trustable debt recovery agency in Singapore. Our team helps businesses collect unpaid accounts swiftly. Contact us today to discover our solutions and receive your payments.