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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 72 MAL 11/16 ISSUE