When should I consider using an agency to collect my debt?

When should I consider using an agency to collect my debt?

Chasing overdue payments from clients can be a time-consuming and frustrating process, and there are a number of different circumstances where using a professional would be the best option for your business. But how do you know when it’s the right time to ask someone to take over this role for you?
At Daniels Silverman we have identified 5 circumstances when using a debt collection agency would benefit your business.

Overdue Payments

Chasing overdue payments from clients can be a time-consuming and frustrating process, and there are a number of different circumstances where using a professional would be the best option for your business. But how do you know when it’s the right time to ask someone to take over this role for you?

At Daniels Silverman we have identified 5 circumstances when using a debt collection agency would benefit your business.

Internal Resources becoming too stretched

This can be particularly true for smaller businesses who simply do not have the staff or time to chase unpaid invoices without neglecting other areas of the business. The amount of time and effort that can be spent trying to get these invoices paid may not actually result in any invoices being collected. This is a direct cost to your business and can also lead to low morale among the staff who have been tasked to contact the debtors. Added to this waste of resources, your staff may not have the skills necessary to successfully recover the money owed and this can lead to a damaged relationship between you and your client. Recovering a debt should never cost you a client and calling in a reputable agency to collect unpaid monies can mean that those relationships are protected. A reputable agency will understand how important your clients are and do everything they can to protect both your reputation and that client relationship.

The debt has become significantly overdue

It has been shown that the longer a debt remains unpaid, the harder it becomes to collect. Rather than wasting your valuable internal resources chasing the debt, engage an agency sooner rather than later in order to maximise your chances of success.

The customer is ignoring you

If there has been no contact from the customer, and all attempts at contact are being ignored, then recovery can feel like an almost impossible task. Debt collection agencies have the resources needed to trace and contact even the most evasive of customers. Once contacted we have the skills needed to recover your money.

The customer is disputing the invoice

This is another good example of when employing a collection agency can bring real benefits. If the customer is denying responsibility for the invoice or making a complaint in order to avoid making the payment, then a debt collection agency can act as a mediator to try to uncover why the client is not paying. It may be that they are having cash flow issues and are too embarrassed to say so. Whatever the reason, a good agency will work with all concerned parties to find a solution that works for everyone and ensure that the payment can be made.

Repeat offenders

Every business will have difficult clients who ignore your terms and conditions and repeatedly delay paying your invoice. They use very trick in the book including constant promises of payment that never arrive. If you have a client that repeatedly stalls or tries to evade payment, then using a collection agency can be the nudge they need in order to pay what they owe. This can be done in such a way that the relationship is protected, but the message has been sent that you take late payment seriously. This means they are less likely to repeatedly delay payment in the future.

Every debt needs to assessed individually. A good collection agency understands that there is no ‘one size fits all’ approach to debt collection. It is worth remembering that the longer you wait to make contact, the more difficult it becomes to recover the money.
At Daniels Silverman we work hard at building a good relationship with all of our customers. We understand that it is your reputation that we need to protect, and that it is your business we represent when we collect money. We do all we can to preserve the relationship that you have with your clients and will tailor our debt recovery paths in order to do this.
Why delay? If you have overdue invoices contact us today and free up your time and resources to focus on growing your business and leave the rest to us.

Call Daniels Silverman today or start a web chat and see how we can help provide you with a tailored credit management system for your business.