The 7 superpowers of a great debt collection agency
In the fight against late payment a good debt collection agency could be the partner you need in order to beat the bad guys and conquer your cash flow. And to prove it, here we look at 7 reasons why a good debt collection agency really can be your hero.
1. Healing powers
A debt collection agency might not be able to heal real injuries or illnesses, but they can assist with easing the pain caused by late payment.
Without payments coming in on time your business may struggle to meet its commitments, which is why a good debt collection company will act quickly to minimise the impact on your cash flow.
And, to undo some of the damage already caused to your business, they can also collect late payment interest and statutory compensation on top of what you’re owed.
2. X-ray vision
Whilst a debt collection agency won’t have the ability to see through walls, they will have the powers to see through the late payment excuses given by your customers.
As far as superpowers go it’s certainly not as glamorous, but when it comes to recovering payment from an evasive customer it’s invaluable.
And, dealing with late payers on a daily basis, they will have the necessary skills required to get past the excuses and recover your payments.
3. Time manipulation
A debt collection agency won’t be able to turn back time and stop you trading with a late payer. But they will be able to save you valuable time that could be allocated to other aspects of your business.
Statistically, the longer an invoice goes unpaid the harder it becomes to collect. As a result, many businesses waste a significant amount of internal resource chasing these old payments to the detriment of the rest of their sales ledger.
A good debt collection agency will take this pain away by taking responsibility for your aged debts so that you can concentrate on newer invoices.
4. Superhuman intelligence
OK, superhuman might be a bit of an exaggeration. But when it comes to tackling late payment a debt collection agency will have the knowledge and expertise required to help you get paid.
Working in debt collection on a daily basis often means they will have gained knowledge and experience to often rival in-house expertise.
And some debt collection agencies will have specialist knowledge of certain sectors which could also significantly improve your chances of successfully collecting your money.
5. Caring qualities
Superheroes all have one thing in common – they care. And a good debt collection agency will too.
They will try to use mediation tactics in order to recover your payment whilst preserving customer relationships.
Legal action, which can be a useful tool in a debt collection agency’s utility belt, will only be used when it represents the most appropriate route to recovering your money.
6. Fight for justice
One of the reasons for this is that chasing late payment through the courts can be challenging and costly. There are protocols that need to be followed, legal jargon to understand and different enforcement options.
But, in the event you need to take the legal route to recover an unpaid invoice, a good debt collection agency will be able to work with you throughout the process, from issuing of a Letter Before Action to enforcement.
7. Save you money
There will inevitably come a point when you’ve tried all you can to recover a debt, making it important you make the most of all the resources at your disposal before writing it off.
Whilst bringing in a debt recovery agency will mean you miss out an a small proportion of the invoice value, this cost can be offset against the risk of losing your money altogether.
Plus, most collection services are success-only, which means you don’t pay unless your money is recovered.
It can also be balanced against the resource that would otherwise have to go into your own team’s credit control, which could then lead to other debts being neglected.
If you need the help of a debt collection agency contact us today on 0800 9774848 to see if we could be your hero.