- Does your credit control team need extra support?
- Do you have outstanding invoices piling up?
- Are you looking for expertise and experience in chasing payments?
Then, like thousands of businesses across the UK, a commercial collection agency could be the perfect solution.
Flexible and agile to meet a range of business needs, commercial debt collection agencies work with businesses for one-off support or as an extended part of the team providing ongoing credit control services.
But why should you use a debt recovery agency for your business?
Debt collection can be time-consuming and take up a lot of resources. As a result, most businesses opt to work with debt recovery agencies because they often don’t have this additional resource or the expertise internally to effectively manage the process of debt collection as efficiently as possible.
Often in-house collections have failed, and rather than write the debt off, a debt that is still collectable, it is more beneficial to outsource to a professional debt collector.
Businesses also outsource debts if they are experiencing a particularly difficult customer or the customer has become uncontactable. In these instances, using the skill and experience of a commercial collection agent is vital.
Any of these reasons or challenging situations can happen to any business at any time. That’s why today, you will find various businesses, across a range of sectors, opt to work with debt recovery agents to support their business and teams further.
Business types who benefit from outsourcing late payment of commercial debt
Rapidly growing companies – those businesses that experience fast growth in a short space of time might not always have the time or resource to handle additional invoices coming their way. To ensure invoices are paid and paid on time, you need a collection agency to provide you with essential credit control services.
New businesses – starting a new business is no small feat, and quite often, you are the person responsible for a lot of different areas of the business. Unfortunately, this can mean that you may not have the expertise or time to achieve the right results when it comes to credit management. Using a collection agency helps take this burden away and frees you to focus on other business areas. Plus, outsourcing rather than hiring staff immediately allows you to manage finances a little more flexibly in the short term.
Small businesses – thousands of small businesses outsource their overdue invoices and late payments to collection agencies. Again, using their expertise and avoiding placing additional strain on small teams, or indeed having to take time out to do the job themselves.
Utility companies – outsourcing outstanding invoices to collection agencies is a popular choice for utility companies. Within this sector, due to the regulations and guidelines, the sheer volume of customers, and the complexity surrounding chasing payment – outsourcing to a third-party collection agent is seen as the most beneficial option.
Construction companies – the construction sector has one of the worst reputations for payment practices and invoices being paid on time. With often quite long payment delays due to various reasons (and excuses), debt collection agencies are brought on board to recover outstanding debts quickly and effectively.
Manufacturing companies – for those businesses who operate by trading on credit, it is vital that you have robust processes and practices in place to ensure that these credit terms are not violated. Waiting for payments to come in so you fulfil orders can be a big problem.
This is where a professional debt collection team can come in, helping speed up processes and reducing the wait for the payment to help improve overall cash flow.
Wholesale industry – due to the nature of the wholesale sector and the exporting and importing of goods, long credit terms are seen as standard. This means getting paid on time, every time, is essential. To provide you with peace of mind, make sure to use and reap the benefits of a range of debt collection services.
Other sectors include:
- Recruitment companies
- Publishing and printing companies
- Solicitors
- Financial advisors
- And more.
No business wants to put strain or pressure on customer relationships or damage their brand or reputation in any way.
However, no matter what industry sector, businesses also have to keep their cash flow flowing to survive.
Professional debt recovery agencies work hard to preserve your brand and customer relationships, understanding that maximising these relationships is key.
Benefits of using debt collection services:
- You have access to a range of very specific skills and expertise at your fingertips
- You get the valuable time and resource back, to focus on other areas of your business
- You can have peace of mind that overdue and late invoices are in experienced hands
- You avoid writing off unpaid debts that could potentially disrupt your cash flow.
To see how your business can reap the benefits of using a commercial debt collection company and how outsourcing debt collection services can further support your business, speak to a member of the Direct Route team today. Call 0330 229 1991, or email your questions and requirements to memberbenefits@directroute.co.uk; we’d be happy to help.