4 More Reasons Why Hiring a Commercial Collections Agency Is Better for Your Business
Is hiring a commercial collection agency truly better for your business? Undoubtedly the answer is yes. It frees you from the hassle of having to collect from your delinquent debtors, allowing you to focus on what’s more important– your business.
But hiring a commercial collections agency can offer you more than just convenience. Doing so is beneficial for your business in several other ways:
- It offers legal protection. Debt collection is no longer as it once was. Whereas methods varied greatly when the debt collection industry was first established, now numerous laws govern it. One misstep and you could easily be sued by your debtors. Commercial collection agencies know this, and are aware of state and federal collection laws. They’ll make sure to successfully collect debt for you without breaking any laws.
- Faster, more effective collection of unpaid debt. The longer it takes to collect debt, the harder it will be to collect. Therefore, it’s ideal to receive payment for a debt as soon as possible. Being experts in their field, of course commercial collectors will be able to collect unpaid debts faster than you would on your own. They know the best, legal techniques to collecting those debts, including conducting audits and investigations. With these methods, you can be assured of results faster, and the faster you get paid, the better your business will run.
- Keeps you from wasting precious resources. It takes a lot of manpower and time to keep calling debtors and sending them letters. And as most businesses will tell you, time is money. While channeling your time and effort on trying to collect debts, you could be wasting a lot of money in the process. By hiring commercial collectors, you can conserve time, effort and money and channel these resources on other, more important aspects of your business.
- Helps maintain your business’s integrity. It’s difficult to remain level-headed when faced with difficult or stubborn debtors. When debtors remain elusive or act unreasonably, it can be easy for business owners to lose their temper and act unreasonably themselves. They could end up sending threatening messages or publicly destroying the debtor’s reputation, which can backfire and damage their business instead. Professional collectors eliminate the risk of these things happening. They can take the burden of collection from business owners and keep a level head while doing their job, so they don’t risk damaging the business’s reputation.
Whether the debt was created with the intention of building credit or from purchasing goods and services, the importance and urgency of debt collection remains. However, debt collection shouldn’t keep you from running your business properly or keeping it safe from destructive elements. If you truly value your business, it’s wise to hand over the responsibility of collecting debts to those who know how to do it best. Commercial collections agencies will make sure that you don’t waste time and other resources simply trying to get paid, and will ensure that collections are done legally, and in the most effective manner possible.
About The Author:
Dean Kaplan is Principal at The Kaplan Group. Dean's expertise is widely recognized in the debt collection industry. His advice has been published in a number of industry newsletters such as Credit Today and InsideARM and he is a frequent speaker at industry events.