5 Benefits of Using a Collection Agency
Check out these 5 Benefits to using a collection agency. Every company who allows payments or invoices on a 30-45 day cycle will have some debt owed to them from customers. This is considered your Bad Debt on your profit and loss statement. Collections can be managed by an internal employee or outsourced to a third party.
Here are 5 Benefits to using a reputable collection agencies.
TOO Many positions
In many cases the sales people not only have to work at sales but they also have to work to collect payments, otherwise it affects their commission. Not only does this lead to frustration but it can be very confusing to them and to the clients while damaging relationships that could be salvaged for ongoing business.
Payments are collected Faster
When your staff is harnessed with the task of collecting on bad debt that usually takes them away from doing all their other responsibilities. This many times creates an unpleasant work environment. Many times they were not hired for THIS position but it just becomes their job! Third party collection agencies understand the process and are motivated to collect faster, knowing their opportunity to collect diminishes the older the account is.
Removes the company from the Emotion Equation
Business owners know typically it is easier and more cost effective to keep an existing client than to market to find a new one. By hiring the third party collection agency the company distances themselves by allowing the collection agency to become the “Bad Guy” and again salvages the relationship for future business.
Working FOR not AGAINST
Companies manage their cash flow as long as possible and some do not pay until there is a demand made on them for payment. A call or letter from a Collection Agency will usually take care of this and now you have cash flow again.
Considering you are typically asking an employee who has never been trained or know the laws to do your collections it is costing you money. First of all the time invested and could also include legal fees if you don’t follow the laws. A reputable collection agency will not charge you unless they collect for you. So they are taking a chance on you, not you taking a chance on them.
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?