Don't let your outstanding payables hinder your growth

Pioneer Blog


4 Ways Collection Agencies Can Improve Profit Recovery

10-05-2012

 

Your intentions in keeping debts in-house are likely good.Many companies who have let debts linger, believe they’d save money or that using a third party collection agency would alienate their customers. However, just the opposite is true.

Here are the top 4 ways a professional collection agency can improve profit recovery.

1– Freeing Staff and Resources

When your customer is 60-90 days past due it becomes time consuming for your staff to call and send correspondence when they can be focusing on new and existing, current, customers. Using a professional collection agency frees your staff from this and allows them to concentrate on those current or future customers helping your business to grow. Additionally, collections regulations are increasingly complicated and ever changing, and your staffers, without proper training, can easily cross a line.


2– More Current Information

Debt collection companies have access to current address information and collection software that other businesses typically don’t. If the consumer moves, in-house efforts usually fail, but services like skip tracing (locating the consumer) are standard for collection agencies. Collection agency employees are well trained and experienced in the most effective ways to locate and secure payment for you.


The best time to collect is now. The longer you wait to decide whether or not to use a collection agency, the collectability of your delinquent debts goes down. The balance of the debt, your expenses in trying to collect, plus lack of focus on new and existing customers, is money that might be entirely lost because of  ineffective collection procedures used while the debt ages.


3– Making Your Debt A Priority

Communications from a third party debt collection company are less likely to be ignored. You’re showing that your business means business! Collection letters and calls also clearly inform the debtor what the next steps are whether that be credit reporting or the potential of litigation.


4– Avoiding Legal Pitfalls

Laws and regulations protecting businesses and consumers must be followed even if the business is collecting for itself. Your customers that are located in different states may have different rights. Privacy and healthcare acts can also affect how a business collects. Reputable collection agencies should be well versed and experienced in complying with all state and federal laws.

After all, you really have two choices:

1. You can keep doing what you're doing (and hope for a different result), or 
2. You can hire a professional collection agency that that can help collect the money you are owed.

To get a no obligation quote follow this link http://www.pioneercollects.com/get-free-quotes.php or contact us directly to see how we can help you at 855-712-1999.



 

Please call 855.712.1999 with any questions or if you would like to make your payment over the phone

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