When running any type of business, you are obviously dealing with clients and customers who ultimately need to pay you for your goods and services. But we all know that there are a certain percentage of your customer’s over time that will drag out payments, not pay you at all, or run into circumstances where they lose the ability to meet their financial obligations.
Many businesses have the best of payment terms and expectations, but there are always circumstances that arise with certain customers that you’ll need to address when it comes to getting paid on time.
Most people understand the basic concept of a collection agency. Customers do not pay, and your business sends those accounts to that agency for further activity. However, other important benefits come with hiring the right debt collection agency that you may not be aware of.
Hiring a collection agency goes far beyond the basics of getting money in your door quicker. Check out some of the other reasons while using the right agency is a smart move for your organization.
Improving overall cash flow
Alright, this one is probably not one of those little-known benefits, but we feel it needs repeating. If you’re running a small business and you’re very busy, you just need cash in the door. But if you look at the overall health of your business, one of the main ways to keep your business strong is to maintain positive cash flow. Yes, a collection agency will work with your customers to arrange for payments, but the overall goal is to build up cash flow, so you have a healthy business with staying power. Cash flow is not just about the current circumstances. It’s about having enough resources to weather the ups and downs of business.
Negotiation tools you might not possess internally
Another benefit of using a reputable collection agency is that a well-trained debt collector can provide immense value to your business. That value comes in the form of negotiating with your customers who have not paid. Debt collectors listen to your customers and seek to understand the reasons why they have not met their obligations to your business. Whether it’s an outright refusal to pay your business or that consumer has fallen on tough times, a professionally trained collector has the negotiation tools to make progress with your customer.
Managing your reputation as a company
You’ll always see us promoting the compliments we get from consumers. Every day, consumers we contact compliment the way our professional debt collectors treat them and offer them advice on a path forward to pay off their debt. Consumers are treated with dignity and respect, not only because it is the right thing to do, but you can achieve far better results when you treat people fairly and listen to their situation. When you have a debt collection agency that does this, it goes a long way in managing a good reputation as an organization. Consumers should be treated respectfully in good times and situations where there may be a dispute.
Employee Peace of Mind by meeting payroll
Let’s face it, your employees want to know your company is stable. They want to know that your organization is healthy, growing and possesses positive cash flow. While many of them need to do their part in growing the organization, your accounts receivables procedures should be as tight as possible in the background. Using a debt collection agency enhances your ability to meet all your obligations, including those to your employees. Should your team know and understand why you’ve hired a debt collection agency, absolutely!
If your organization needs to strengthen cash flow, contact our team today for a free consultation!