6 clear signs you need to hire a debt collection agency

If you’re a small business owner or leader lying awake at night and stressed out over those unpaid invoices, you are not alone. Your bookkeeper tells you your bank account is shrinking, and your cash flow continuously goes negative.

For many small and mid-sized businesses, late payments are not just a minor inconvenience, they can be a slow bleed that affects areas from payroll to your Peace of Mind.

Many organizations continue to struggle with this and hesitate to talk about how this feels such as frustration as well as fears of what can happen if the financial situation doesn’t change for the business.

Let’s dive into some of the painful and all-too-common problems business owners and leaders are facing when it comes to receivables and cash flow, including the hidden emotional toll that many experience.

If you have ever heard yourself saying these phrases below, it’s time to get serious about debt collections and seek out a third-party collection agency.

I’m always chasing late invoices instead of trying to grow my business

Sound familiar?

Many business owners come to us and tell us that they didn’t start their business to spend all their time chasing late-paid customers. They complain about every hour they spend trying to follow up with customers and then they have no energy to spend on any type of strategy or growth plans. They also feel like they are in an awkward position and some even tell us they’re humiliated because they feel like they’re begging customers to pay for work they’ve already done.

My cash flow is unpredictable, and I can never plan out more than a few weeks

We’ve heard from countless small to medium-sized businesses that they’re constantly shifting money around just to pay their basic expenses. They constantly delay important business decisions because they are uncertain about their short-term financial health. And many business owners typically feel like they’re being ghosted by clients and have fears of making payroll and other critical expenses.

I hate having to explain to my team why certain purchases or improvements are on hold

Have you ever been in a position where you couldn’t give your team bonuses or even a simple raise? Or you couldn’t fix or replace an important piece of equipment. Without a strategic debt collection program, this is bound to come up.

You continue to be frustrated that your team is working hard and deserves better, but cash flow is getting in the way of giving them what they deserve. And now you feel like you’re constantly letting your team down, losing their trust and possibly not retaining employees at all. If morale is slipping because people are not getting paid what they’re worth, you need a solid debt collection strategy.

My clients haven’t paid me in months but I don’t want to damage the relationship

We often hear businesses that contact us tell a familiar story. They want to get paid but they’re afraid to damage the business relationship with their clients. They also feel like they have to choose between being respected or being liked. They’re tired of staying professional when they feel like they’re being disrespected. And they feel like they’re walking on eggshells but their clients still owe them thousands of dollars.

Many fear if they keep playing nice, they’ll never get paid at all.

I ask myself every day if I can keep going this way

“As a business owner I have sacrificed so much to make this business work and it still feels like we are stuck trying to get paid on time.” We hear this all the time. What’s worse is many business owners start to feel defeated because they pour everything into their business and they feel like they’re getting nothing back. And it’s taking its toll both financially and emotionally on the team. Some business owners and founders feel like just walking away from the late payments and many have questioned whether they should walk away from the business entirely.

I don’t know who to turn to anymore or ask for help

Some business owners and founders feel like they have tried everything but the fact is, one of the smartest solutions is right there in front of them. And that’s hiring a professional debt collection agency. You don’t have to struggle with a mountain of unpaid invoices month after month. You don’t have to hide your financial challenges with customers. And you don’t need to feel alone. Because countless businesses are working through the same challenges as you are.

And the ones who take action by working with a reputable third-party debt collection agency rarely complain about not being able to meet their own financial obligations anymore.

When you choose the right collection agency for your business, they will treat your customers with the dignity and respect they deserve, they will make your late in voices urgent, they will work with your customers to come up with a solution that works in the best interest of both parties.

Still complaining about not having money in your bank account? Contact our team today!