Col­lec­tion Agen­cies – Why Hire One?

By Dean Kaplan+

Every busi­ness owner wants to make a profit. This is why we’re in busi­ness in the first place, right? Well, what if you are doing all the right things, but some of your cus­tomers aren’t pay­ing their bills? What can the savvy busi­ness owner do, besides get on the phone over and over and still not get paid? One pos­si­bil­ity is to hire col­lec­tion agen­cies.

Com­mer­cial col­lec­tion agen­cies make their liv­ings col­lect­ing out­stand­ing busi­ness to busi­ness debt. They under­stand the most suc­cess­ful col­lec­tion tech­niques and they know the laws.

Pro­fes­sion­als can get your money

Ben­e­fits of hir­ing a pro­fes­sional agency

Allows your com­pany to be opti­mally effi­cient.
Let’s face it, con­tact­ing cus­tomers to pester them to pay their bills can take an inor­di­nate amount of time. By allow­ing pro­fes­sion­als to do this for you, you and your employ­ees can devote your time and energy to other nec­es­sary tasks that hope­fully will add to your bot­tom line with new busi­ness. The time saved can also be devoted to improv­ing credit appli­ca­tion and credit term pro­ce­dures. It is often help­ful to edu­cate cus­tomers up front about credit terms and pro­ce­dures, thus reduc­ing the inci­dence of the slow or no-paying customer.

Improves the chance of your cus­tomers pay­ing what they owe
Good col­lec­tion agen­cies truly know how to col­lect. Employ­ees are trained in the lat­est
col­lec­tion tech­niques, and they do their home­work before mak­ing any con­tact.
When they con­tact your delin­quent clients, they are ready to talk the talk. They get

Expert Advice
Agen­cies know their way around busi­ness to busi­ness debt issues. They can advise you on many aspects of the debt col­lec­tion process and may even be able to act as con­sul­tants to help improve your in-house prac­tices. Some­times they can also pro­vide finan­cial con­sult­ing exper­tise. Because they have such exten­sive expe­ri­ence in the credit/collection arena, they can often pro­vide many help­ful insights to their clients. This finan­cial exper­tise can also help the agency when dis­cussing pay­ment options with debtors. Col­lec­tors have seen it all. They are very savvy when it comes to get­ting pay­ments from debtors. They have a vast array of nego­ti­at­ing tac­tics to select from.

Legal Assis­tance
A few agen­cies have their own in-house attor­neys. When “nor­mal” col­lec­tion tac­tics just aren’t get­ting the col­lec­tion job done, legal action might become nec­es­sary. Rather than hir­ing your own lawyers and hav­ing to go through the process of select­ing the right legal help, you can just have your agency take care of every­thing for you. Again, fil­ing suit to col­lect is just part of the col­lec­tion process for an agency. They know what they are doing, and their lawyers will have a greater chance of suc­cess than if you hire a lawyer yourself.

What­ever you decide to do, remem­ber that sta­tis­tics show that the longer you allow a debt to remain out­stand­ing, the less likely it is to be col­lected. There­fore, if you decide to hire col­lec­tion agen­cies, don’t wait too long. If a customer’s invoices remain unpaid for 90 to 120 days, it is prob­a­bly time to con­sider hir­ing a com­mer­cial col­lec­tion agency.

The Kaplan Group is a bou­tique col­lec­tion agency spe­cial­iz­ing in large (over $10,000) debt col­lec­tions due from busi­nesses. Founded in 1991, the com­pany has a stel­lar rep­u­ta­tion (A+ rat­ing with the Bet­ter Busi­ness Bureau) and is rec­og­nized as one of the lead­ing col­lec­tion agen­cies for results on large and com­plex mat­ters.