Hold on… not so fast!
Before your business decides it’s not a good idea to use a collection agency or you simply cannot afford it, we have a few pieces of advice you should consider before shutting the door on getting third-party help. There is much more to consider before you decide not to use a collection agency to improve your cash flow.
If you have customers that continue to pay late, customers that don’t pay at all or both, check out our reasons to seriously consider getting help from a reputable collection agency.
Your business CAN afford to use a collection agency
Cost should never be a factor if you choose the right agency for your organization. If you’re drowning in late receivables, the cost associated with getting your customers current on their obligations should not be a deciding factor in moving forward. And there is one very simple solution if you’re a business is worried about cost.
You need to retain the services of a low-cost collection agency.
When an agency offers debt collections for a low cost, it means that they operate off a different pricing structure. While many agencies offer solely on a contingency fee basis, if you’re worried about moving forward in using a collection agency, find an agency that offers a low cost and ask them exactly what you get for that investment. Low cost doesn’t mean low customer service. In fact in most cases it means just the opposite. You’ll get increased customer support and in most cases, you’ll see tremendous results.
Your business can’t afford NOT to use a collection agency
Many businesses come to us because they feel they have tried everything to get their customers to pay on time. But the problem is, they tried ineffective tactics and strategies for far too long. And the result was as predicted. Many businesses continue to be right in the same place, struggling for cash flow. Most businesses that find a good fit and a collection agency never look back. They wonder why they didn’t make the decision much earlier. When you get an agency representing you that treats your customers fairly, you too will wonder why you waited so long to bring in a third party agency.
The health of your business relies on positive cash flow
Many organizations fail to take the next step in their accounts receivables program and hire a collection agency for one reason. They feel by doing so, they will anger their customers and alienate them. And that feel that will result in losing business. While no debt collection program is preserves every customer, many customers are in fact saved for a business when they use a collection agency. By opening the lines of communication and getting that customer to the table, it maintains the business relationship. Repeat, using a collection agency can help you save customers
Could you lose some customers by using a collection agency? Yes, but you may lose more customers by not using an agency and getting ahead of your receivables. Customers may choose to go elsewhere, may feel embarrassed or think they may have a legitimate reason not to pay you because they have not heard from your business. And keep in mind, the health of your business needs to take priority. Meeting your own expenses and payroll is mission critical; the only way you do that is by increasing cash flow.
But please remember that using a collection agency that treats people with dignity and respect will only help you keep your customers. So choose wisely.
A collection agency needs to be part of your overall accounts receivable strategy
The fact is, debt collections is part of accounts receivables. You cannot separate the two. You can handle it in different ways, such as overworking late accounts internally. But most businesses that have had cash flow challenges in the past, have realized that using a debt collection agency needs to be part of your operations.
If you think you still can’t afford to hire a debt collection agency, contact us for a free consultation. Our experts can show you just how much money you are leaving on the table every month.