Here are 5 reasons to hire a debt collection agency. Every business has encountered overdue accounts from clients. It is how you deal with those that make the difference for their company. Did you know 82% of businesses fail because of cash flow?
Why hire a debt collection agency? Here are a few reasons.
Reason #1 | Legal Protection
If for no other reason to protect your business, you will want to outsource your collections.
You can get your business in trouble with a lot of fines if it is done wrong. Each state has different laws that determine and govern what a collection agency can and cannot do. Well-informed debtors look for a loophole to sue if a law has been broken.
Reason #2 | Efficiency
Collection agencies have more advanced tools like skip tracing to find those that have “Skipped Town”.
Collection agencies can also reduce legal costs and other fees a business can accrue when trying to collect the debt on its own.
When you choose a good collection agency, they know how to settle with debtors quickly and efficiently.
They have a reason to collect quickly since most run businesses on a contingency basis. They collect or they don’t make anything.
Reason #3 | Advice
When you hire a collection agency, they also play the role as an advisor. They can share valuable information that can save you time and money.
Reason #4 | Increase Cash Flow
The biggest reason why businesses fail especially in the first 3 years of business.
Collection agencies provide credit management services that can increase your cash flow and keep it under control.
Reason #5 | Documentation
Should you decide to sue the client, the collection agency will most likely have enough evidence to prove that sufficient effort was put forth into collecting the debt, and the debtor failed to cooperate. They keep the details of every client.
Additionally, if you claim the bad debt as a write-off, the agency will have the appropriate documentation. ROI is extremely important.
Be wise when choosing the right collection agency. Find one with an A+ Better Business Bureau rating. Make sure they work with your industry and have amazing results.
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 on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect it! Why not try and re-coop some of your past due accounts with no out-of-pocket expense?