How to choose a debt collection agency/Do I need a collection agency?
Having unpaid and overdue invoices is nothing new to businesses and the current economic climate is only likely to make it a more common issue. All businesses, whatever sector you operate in, will at some point come across clients who don’t pay their bills. All email requests for payment go ignored and they are always […]
Having unpaid and overdue invoices is nothing new to businesses and the current economic climate is only likely to make it a more common issue.
All businesses, whatever sector you operate in, will at some point come across clients who don’t pay their bills. All email requests for payment go ignored and they are always ‘in a meeting’ when you try and speak to them on the phone.
Whatever the reasons for non-payment, not paying bills when they fall due puts a strain on your business and has a knock-on effect to everyone in the supply chain, the longer it goes on, the greater the effect.
It’s not only the financial impact to your company, there is also the time lost to the business chasing the unpaid invoices which would have been better spent focussing on growing your business.
These are difficult times, there is no getting away from that, businesses will struggle and not every business will come out the other side. However, if you haven’t been paid for goods or services provided, then it makes sense to make sure you are. Collecting money that you are owed could mean that you don’t have to borrow to stay in business, it means you can pay your staff and focus on growing.
The old image of collection agencies as heavy handed and unfair has been largely banished through much better regulatory control and many businesses see these companies as valued partners.
How do you know if you would benefit from the services of a collection agency?
There are a few indicators that you should partner with a collection agency:
– New clients do not respond to your first attempt to collect the debt.
– A client uses excuses not to pay and complains about your business, product, or service to avoid paying.
– You spend too much time chasing payment to the detriment of working on your business.
– A client denies responsibility for the debt.
– A client repeatedly delays payment by querying invoices and services/products.
– A client defaults on an agreed payment plan.
– You start to suspect that a client is either unwilling or unable to pay their debt.
If you feel that any of these situations apply to your business, it makes sense to partner with a reputable agency to collect the money on your behalf.
How do you choose a collection agency?
There are a few things you should look out for when choosing an agency to work with:
– Do your research. Read their website, what services are they promoting, do they look like an established, credible company?
– Speak to them. Any reputable agency would be happy to discuss your requirements and see how they can help. There should never be a one size fits all approach, good agencies tailor collection to your specific needs. Speaking to them means you can find out more about how the company works, what their methods are.
– Are they a Financial Conduct Authority (FCA) Approved debt collection agency? Do they have any quality management systems accreditation? Are they members of recognised trade bodies such as the Credit Services Association (CSA)? Are they invested in training their staff to industry standards through initiatives such as the Collector Accreditation Initiative (CAI)?
– Size isn’t everything! A huge national firm may not be what you need, they may be no more successful or a better fit than a smaller company who can offer a more bespoke solution. Look at their reputation and track record instead.
– Testimonials. Are there testimonials from recognised companies visible on their website? These are a good indicator that the firm is reputable.
– Will they keep you regularly updated on progress? This is key for a lot of businesses and reduces stress and worry.
– Are they asking for money up front? A reputable agency will only ask for payment on results.
If your business is being impacted by late payment, then Daniels Silverman can help.
You can contact our team via the website https://www.danielssilverman.co.uk/ where we have trained staff waiting to answer any questions you may have or if you would like to speak to someone directly then you can call us on 0800 953 3631 where we have staff who can help find out about your business and your requirements.