5 Collection Agency Benefits
If you have ever said I hate collections or that isn’t my job. Look at these 5 collection agency benefits. Any company who have unpaid invoices for 30-45 days need to hire a reputable Collection Agency? Check out these 5 Benefits to using a collection agency. This is considered your Bad Debt on your profit and loss statement. Collections can be managed by an internal employee or outsourced to a reputable collection agency.
Remove Emotion from the Equation
By hiring a third-party collection agency makes is more cost effective and it removes all the emotion from the equation. This also takes the stress and frustration off the business owner. It many times will allow the company to salvage a business relationship with the debtor.
In the majority of business, the sales consultants not only have the position of a quota of sales, but they also must take care of collections as well. If they paid based on commission, this can affect their paycheck. This will leave you a disgruntled employee.
Don’t Waste Time and Money
When the cash flow is not there for companies it can cripple them in business. They don’t have funds to keep pulling from. Typically, all it takes is a letter from a collection agency to take care of late payment. Then the cash flow issue is solved.
Too Much on Their Plate
When your staff is already extended and then they must chase after unpaid debts it takes them away from their other responsibilities. First, it is not a fun task second that is not why you hired them. Let the experts do what they do best. Remember the older the debt the less motivated they are to pay. Let a collection agency stay on top of it for you.
You hired that employee for their skill set and now you have asked them to do your collections. Do they know the laws? If not, you could be paying so much more in legal fees. Have they been trained in the proper procedures and best practices for getting the most out of collections? Why not use a reputable collection agency who doesn’t charge you unless they collect?
MCA is a third party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves in excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect! Why not try and re-coop some of your past due accounts with no out of pocket expense?