Unpaid invoices are not uncommon; it is estimated that approximately 10% of invoices are never paid or paid very late, forcing businesses to write them off.
Why should your business hire a debt collection company to collect unpaid invoices?
Efficiently maximizing debt recovery
In-house employees do not typically possess extensive debt collection skills or knowledge. When you started your business, you did so because you are very good at what you do, not because you are an expert in finance, law, or human psychology.
In contrast, debt collectors deal with debtors every single day and possess the skills necessary to collect overdue bills. As a result, hiring a collection agency is more practical and beneficial than having employees perform a task outside their area of expertise.
Maintain your relationship without awkwardness
People tend to avoid chasing money from clients simply because it can be uncomfortable and challenging to pursue money from someone they once had a relationship with.
However, when you hire a Debt Collection Agency, you instantly add a degree of separation from the collection process, making it less "personal".
Distancing yourself will also assist in preserving a positive relationship with your client. Rather than your business, you can let the collection agency be the "bad guy" who handles the collections process.
Escalate appropriately
Professional debt collectors are trained to know when and how to escalate the collection tone to get those who simply won't pay to pay.
Various methods
Debt collection agencies such as Fair Capital adapt according to their clients' and debtors' needs.
Professional collection agencies usually offer various payment options to encourage debtors to pay. Additionally, as necessary, a collection agency can negotiate payment plans and accept payments in various ways (phone, online, debit, credit, automated clearinghouse, etc.), assuring your debtor keeps up with their payment terms.
We Can Help
As a business owner, you understand how vital cash flow is. Clients who do not pay your company's invoices can seriously affect your company's profitability.
When your debt collection attempts have not yielded results, give us a call because we can help.
