Should Your Small Business
- Reduce your risk of not being paid back.
- Get the money you deserve when customers don't pay up.
- Stop worrying about how to get paid for your work.
- Feel relieved knowing that you will be compensated for what you do best.
Being in the business, you often have to take the risk of lending credibility to your customers to increase your sales. Quite often, these customers do not pay you back once they receive the products or services that they needed. This results in loss of profit and lowers your overall margin. Various businesses and individuals like landlords, attorneys, doctors, etc. often become creditors when they do not receive the payment for the services they provided.
You may have a good intention when you are lending your customers a product or service, but your customers may often take that for granted and become delinquent debtors. What you can do to handle the situation is to hire a debt collection agency.
Getting To The Debtor Through Internal Collections
When you opt for private collections yourself, you can send letters to the debtor, as a creditor. This letter demands the debtors to clear the payment. It may also include threats of litigation if the debtors fail to pay their debt. You can make several phone calls and send emails and letters to your debtor to recover the debt yourself. And, ultimately, you can take the debtor to court for not paying you back.
Hiring a Third Party For The Collections
If you are unable to recover the debt despite the efforts, your last resort is to
to do the work for you. It is quite a risky decision because any unfair practice of the agency can cost you your reputation. Moreover, collection agencies charge the right amount of money for the collections.
Tips To Hire a Collection Agency
Always research the collection agency you have shortlisted. You can take referrals from suppliers and other people in the business.
Pick an agency that specializes in your industry
Find out all the possible ways you will be communicating with the agency to know the status of the accounts and get the reports from time to time
Research about the ongoing rates in the market and then negotiate accordingly with the agency. Prices are almost always negotiable.
Opt For Flat Fee Collections
A flat fee collection service lets you take advantage of
but without any risk virtually. You get the benefits of a collection agency without them having to contact any of your customers. They also do not have to accept your payments. You have to pay a nominal fee and submit the accounts online. If your debtor does not pay, they will be placed on the debtor’s credit bureau report.
Conclusion: It’s not uncommon for businesses to take on the risk of lending credibility to their customers in order to increase sales. However, this often results in loss of profit and lowers your overall margin as a result. If you find yourself needing assistance with collecting money owed from previous debtors, we can help! We have years of experience helping people like landlords, attorneys, doctors and more collect what is rightfully theirs when they are repaid by previous clients who no longer want or need the services provided. To learn more about our process and how we can work together click here below now!