debt management.
It may also be obvious that the role
of third party collection agencies if
not known to many businesses or the
criteria to hire debt collectors laid
down in this case.
Well, do not be afraid. With a good
collection agency or law firm you
won’t lose control. In fact you will
enjoy the following:
p Strengthen your existing credit
department;
p Save time, money and resources;
p Uphold your positive reputation
and maintain your business
relationships;
p Improve your cash flow and
reduce your DSO and bad debt
write-offs.
p Meet supply deadlines hence
customer satisfaction
Strengthen your existing credit
department
Engaging a debt collection
professional shows your customers
that you are serious about default with
little intention of writing it off.
Therefore, your customers will be
less inclined to test the boundaries
and make sure you are paid on time
when they know there are negative
consequences in the first place.
And by introducing a third party into
the collection process, it will make
those clients who are ignoring your
attempts at collection, sit up and
listen. A competent debt collection
professional apply a lot more
continuous pressure to your clients to
retrieve your debt because getting you
paid is their sole job.
Save time, money and resources
Not only are invoices that remain
unpaid at 90 days cash that could
prove a major difference to your cash
flow, its recovery will no doubt be
consuming a great amount of your
time and resource, which in turn
detracts you from your newer debts.
Simply put, it’s wiser for you to spend
your time and effort into growing
your business rather than chasing a
customer who won’t pay their bill. The
same goes for your credit department,
Engaging a
debt collection
professional shows
your customers that
you are serious about
default with little
intention of writing it
off. Therefore, your
customers will be less
inclined to test the
boundaries and make
sure you are paid on
time when they know
there are negative
consequences in the
first place.
outsourcing delinquent debt allows
them to concentrate on increasing the
collection calls to your more recent
receivables.
The more contact you have with your
clients the earlier they will pay and
therefore, reduce the amount of debts
you refer onto your debt collection
agency in the first place.
Uphold your positive reputation and
maintain your business relationships
Organization’s customer
relationships are the future of your
business and the last thing you want is
for your reputation and relationships
to suffer as a result of bad debt.
It’s all too easy to take someone owing
you money personally and to say
something you regret in the heat of the
moment.
By distancing yourself from the
collection process, you are able to
maintain your relationship with the
client and do business in the future
(obviously it would be a good idea
to renegotiate your terms or ask
for payment upfront rather than
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