If you are thinking about using a debt collection agency to mange your outstanding accounts receivables, it’s only natural to have some questions. Here are answers to seven frequently asked questions about engaging debt collection services:
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- Debt Collecting takes Special Training and Skills: Unless you have a dedicated staff member who is properly trained in debt collecting and focused solely on that task, you’re leaving money on the table.
- Your staff doesn’t have the time: Again in most companies, collecting aged receivables is one of many tasks on an employee’s plate. As a result, there’s often too little time spent turning accounts receivable into cash.
- Your people hate doing it: Let’s face it: debt collection calls can be uncomfortable and difficult. If your staff isn’t comfortable asking someone to pay what they owe, they usually won’t be successful in recovering those debts.
- You’re unable to collect some accounts: You have a business to run and it’s not a debt collection agency. If your collection practices are not optimal, your team may struggle to collect your consumer debts. By hiring a collection agency that is trusted and trained, the money that is rightly owed to you for services rendered will most likely be paid.
- You’re in the dark: Not sure how effective your debt collection practices are? The lack of regular, structured reporting about your debt recovery efforts can hamper your collections. It’s tough to hold your team accountable for debt collection without a tracking mechanism in place. A quality debt collection agency will be able to analyze your accounts and provide you with reporting so you know where everything stands.
As in any successful partnership, open communication is vital when working with a collection agency. Here are three simple tips for getting the most out of your collection agency through great communication:
You may often hear collection agencies refer to themselves as “licensed, bonded and insured”—but what do those things really mean? In this article, we’ll take a closer look at each of these concepts and why they are important.
Great debt collectors remain professional and respectful at all times, which is no mean feat considering they are in an inherently uncomfortable situation—few people enjoy talking about their finances. Besides, many of the customers they are calling are experiencing feelings of shame, frustration, anger and other strong emotions.
As with any change, the decision to outsource debt collection will require you to communicate with key stakeholders and get their buy-in before you can move forward. Follow these five steps to begin building a case for outsourcing debt collection at your company:
There are a lot of great collection agencies serving the needs of businesses all over the country, but there are also some who do not have the best interests of their clients at heart. Here are six things that some collection agencies do not want their clients to know:
Debt collection agencies use a variety of tools and tactics to successfully collect debts on behalf of their clients. Professional collection agencies often use the following six tools to maximize debt collection:
Debt collection professionals make calls on the behalf of your company to customers who have past-due bills. Not just anyone can pick up the phone and successfully collect a debt—it takes a special skill set and a high level of professionalism. Great debt collectors exhibit all of the following five attributes: