Five Reasons Debt Collection Agencies Work
As every business owner understands, dealing with customers that don’t pay their bills can be one of the most frustrating experiences of doing business. When customers do everything in their power to avoid paying their debts, sometimes it makes more sense to hire the services of a debt collection agency to convince the debtors to make payments. Here are a few of the many reasons debt collectors get the job done when creditors have no luck collecting unpaid invoices:
- When a debtor receives a call from a debt collector, they often become very uncomfortable knowing their credit score could be in jeopardy. Furthermore, collection agents are well-versed in the legal options available to creditors if customers don’t pay their bills. In some cases, this discomfort is enough to convince them to begin making payments, if only for the sake of saving their credit.
- Reputable collection agencies have a plethora tools at their disposal to track down fleeing debtors. They are experienced in finding people who seem to have slipped off the face of the earth, and know how to deal with a debtor once they find them.
- When using a respected collection agency, debt collectors that make collection calls maintain a neutral and level-headed approach. It is easy for a creditor to become angry, upset or angry when dealing with problematic customers; this can damage the effectiveness of their collection calls. A good debt collector knows to remain calm and act as a neutral party, applying pressure and more aggressive collection tactics when beneficial but never losing their temper.
- Agencies that have been around for a while generally employ very experienced debt collectors. These collectors have had years to hone their collection technique in order to maximize success, and devote their full attention to debt collection. A credit manager or business owner who attempts debt collection alongside the rest of their duties clearly doesn’t have this time to create an effective collection strategy, and having to constantly make collection calls can become a deficit to the overall productivity of a business.
- If a collection agency is unable to successfully collect from a debtor, they have the knowledge and resources available to file suit against them or receive a judgment. While this process is more costly and time-consuming than regular debt collection, in some cases pursuing legal action against the debtor is the only option available. If a collection agency doesn’t personally handle judgment or lawsuit proceedings, they will most likely have a number of law offices or other agencies that they can refer clients to in order to pursue legal action against a problem debtor.
These are only five of the many reasons debt collection agencies are able to collect on debts when creditors are unable to. If your business is having difficulty collecting on unpaid debts, it is worth looking into debt collection agencies that may be able to help.
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.