Why you should outsource your debt collection in 2017
6 reasons to outsource your debt collection this year.
This year, is your year. It’s time to work smarter, not harder, and to delegate in order to get things done. Ask yourself, what are you doing in your business that takes you away from your core focus? Chances are, one of those things is chasing overdue payments.
These kinds of conversations and the paperwork and time behind them, can prove to be stressful. Worse still, they might not be as effective as they should be and can jeopardise valuable client relationships. Just as you would prefer a pilot to fly your plane, a doctor diagnoses your ailments and a plumber to deal with your plumbing, so too should you turn to professions when it comes to debt collection.
A professional debt collection agency will ensure you have a professional by your side to protect your business as best as possible against growing debt levels and bankruptcy rates. Despite the associated stereotypes of debt collection companies, good debt collectors operate ethically and follow industry guidelines to help you recover debt.
Here’s why you should outsource your debt collection in 2017.
Get your credit terms right.
A debt collection company can help you set terms of trade that are clear and beneficial to your business. This should be signed by both parties before any work commences and should stipulate that all fees and charges associated with recovery of money owed are solely the responsibility of the customer.
Check your customers credit prior to extending credit
Australia’s Comprehensive Credit Reporting (CCR) laws make it simple for business to have a better idea of a customer’s credit profile. Undertaking a credit check on any new customer will reduce your risk of seeing invoices fall into the overdue category. A collection company can assist you with these types of checks and help implement these important business’ systems and processes for new clients.
Keep the cash flowing
Timely collection of invoices improves your business’ ability to maintain a positive cash flow. Outsourcing this means you can spend more time working on other parts of your business whilst a professional takes care of all this for you.
Reducing your arrears
Statistics reveal that the longer an invoice is outstanding, the less chance it has of being paid. It’s important, then, that you have a system in place that ensures all invoices are paid in a timely and effective manner. Collection companies can form an integral part of this system, whereby they provide you access to their specialised technology and proven recovery techniques.
Improving efficiency
Hiring a debt collection agency ensures the burden of chasing those outstanding invoices is taken off your shoulders, allowing you to minimise the distraction that was once debt collection.
Debt collection companies do just that: collect debts. It’s their bread and butter so you can be assured of their efficiency in that area! Working with a collection company will see your late payments and non-payments significantly reduced as they solely focus on monitoring and collecting your receivables. Outsourcing not just the collection, but the monitoring of your overdue invoices will ensure this stressful and time consuming task is handled by industry experts.
Keep your clients on your good side
Client relationships are key to keeping your business operating. Outsourcing your debt collection to a third party will ensure that your conversations with your clients are limited to the goods and services you provide, rather than worrying about if they are behind in payment.
Collection agencies employ highly-trained professionals who are capable of maintaining and nurturing healthy relationships between your company and clients, removing one of the main concerns small business owners have on using a debt collection company.
If you would like to speak to a professional debt collection agency to discuss your outstanding debt, please get in touch today! We are a results driven agency – one of many reasons why we are Australia’s leading debt collection company.