Business only works if you continually collect on monies owed for the goods and services you provide.
However, we understand that collecting unpaid invoices is probably not the best part of your job and certainly not an element that everyone feels confident with.
We also know just how much time can be taken up chasing debts. From telephone calls to writing and sending letters and emails, the time you spend on all of these activities is time spent away from business activities that help drive your business forward.
In addition, the older the debt becomes, the harder it is to collect and, in most cases, is forgotten about or written off.
That’s why instructing a commercial collection agency like directroute.co.uk to work on your behalf can be highly beneficial to your business.
Not only is hiring a third party one of the fastest ways to collect on unpaid debts, but it allows you to get on with the day job while someone else takes care of the debt collection process.
Below, we look at the main benefits hiring a business debt collection agency can bring to your business.
Why you should use professional collection services for business debt
Abide by guidelines and strict codes of conduct
Various laws and guidelines govern the collections industry. However, using professional collection services, you can rest assured that your debt collector will be well-versed in these, knowledgeable regarding rights and responsibilities, and in an excellent position to find the best solution and strategy going forward.
Increases your chances of the debt being recovered
Commercial collection agencies have years of experience in their field. They know the best collection techniques and have much higher response rates due to their standing and professionalism in the sector. It is the psychological power of a third-party name involvement. Even just the term “debt collection agency” is enough for some to ensure payment quickly.
Provides you with flexibility
We understand that for commercial collections, there is no one-size-fits-all. That’s why collection strategies are tailored to a business’s needs and wants, offering you complete flexibility.
You have a robust paper trail
Paper trails are important documentation and required if the debt is taken further, potentially leading to court action. Debt collection agencies follow rigorous procedures to ensure a complete paper trail and demonstrate the extensive effort to collect on the debt.
Can boost your branding and your reputation
Working with a professional team who understands business relationships means any matters or potential issues can be identified and resolved quickly and effectively without negatively affecting your relationship with your customer. Helping to boost customer retention while maintaining positive cash flow.
You ensure you’re fairly treated
When customers know you work with a professional collection agency, it can often ensure that, as a business, you are also treated fairly and paid appropriately for the goods and services you have provided. Of course, fairness works both ways, and you might choose to show fairness on your side by extending credit facilities and terms as you now have confidence in payments being made.
Helps to manage costs
Setting up and managing your own internal debt collection team can be costly. Teams need to be highly trained and specialists in the field of business-to-business collections. You may also require the right IT systems and software specific to debt collection procedures. Hiring a third-party collection agency removes this cost and time-consuming part as we’re already set up, with procedures in place to hit the ground running.
Experts in commercial debt collection and trained to the highest level, directroute.co.uk.
Qualities of a good collection agent
Debt collectors are sound negotiators, tactful, persistent, and even understand, to some degree, human psychology.
They’re also up to date on all legislation and guidance, so they know how to best collect on your outstanding invoices.
Influential, efficient, and on hand to build stronger business relationships, a professional debt collection team can offer you it all.
Whether you would like support with slow payers or collection on overdue invoices, we provide a transparent and stress-free collections process that ensures you get paid quickly and on time.
No longer do you have to spend your time chasing debtors and overdue payments. Now you can leave this side of the business to the professionals, allowing you to get on with everyday operations.
Appointing the right agency sooner rather than later can be everything to your business.
Cash flow and managing cash flow is one of the biggest reasons why so many businesses close down. Making it essential that you have the right procedures and processes to help limit slow payers and avoid bad debt.
By using a reputable firm as an extension to your team, you can rest assured that your cash flow keeps on flowing, allowing you to focus on growing your business.
To find out about our commercial collection services, call us today on 0330 229 1991.