Having adequate cash flow is key to keeping a business running. You provide a service and your clients pay you for that service. It’s just that simple, right?
Unfortunately that is not always the case. As a result you may want to consider hiring a collection agency to help you recover those funds. When you are ready to bring an accounts receivable management company in to assist you with past due debts there are a few items to consider in the process.
1) Ensure the company you choose is licensed and bonded – being licensed and bonded in all 50 states allows the collections agency to assist you with debt recovery regardless of where the debtor may be located. The collection agency should also be able to prove it adheres to the Fair Debt Collection Practices Act.
2) Look for an accounts receivable management company that specializes in your industry. There are many agencies to choose from but most specialize in specific industries. Make sure you are working with someone knowledgeable about your business and clients.
3) Your needs are unique – find someone who will work with you to customize a plan that will specifically address your needs and increase the return on your investment. It is important that the agency you choose treats you as a partner in the process.
4) Establish a reporting system. A reputable accounts receivable management company should have a system in place to provide you with status updates on your account. Again the agency should partner with you to create a custom report that addresses your individual needs.
Finding the right fit for your business will help you to collect more and worry less about your aged receivables. Be sure to do your research before hiring a collection agency.