Debt collection is an inevitable part of any business, especially if you accept credit transactions. But the process can be tiresome and complicated. If your company has the resources, it is likely you do not need the help of a third party. But small and medium enterprises typically need the intervention and assistance of debt collection experts. Here are some of the commonly asked questions when it comes to hiring a debt recovery agency.
When is the right time to hire a collection agency?
It depends on the terms and conditions that your company applied. Any time that debt is due and demandable; the creditor is entitled to collect. The longer you wait to take action, the harder it will be to recover the funds. As such, debt recovery agencies like http://www.nightfoxinvestigations.co.uk recommend creditors not to wait until the debt is more than 180 days due.
Do debt collectors only work with large companies?
Indeed that are some agencies that specialise in collecting debt for big companies. But, it does not mean there are not any collection agencies for small businesses. In fact, many of these agencies even handle personal debt collection. It does not matter if your company is big or small. Chances are you can find a good collection agency to work with.
What information do you provide to start the collection process?
Many agencies today accept requests through an online form. You may need to send a copy of the invoice as well as provide the contact information of the debtor. Once you have submitted this request to the collection agency, they may get in touch with you for confirmation. During the collection process, the agency will update you regarding the progress.
Will hiring a debt recovery agency alienate clients?
Not if you hire a reputable firm that has ethical and lawful practices. Chasing after a debtor is a complicated process. Even as a creditor, you also need to be aware of your customer’s rights. Be careful in choosing a debt collection agency so that you can prevent damaging your reputation and business credibility.
Another consideration is whether or not the agency asks for an upfront payment before they start collecting. It is better to hire one that only charges a fee when they are successful in recovering money. In the end, losing a few customers is worth the sacrifice to save your business and prevent further losses.
Are debtors given different payment options to settle their debt?
Most collection agencies provide a variety of payment methods. This way, it is more convenient for the debtor to settle the money owed. It is crucial to look for an agency that accepts different payment methods as it indicates their flexibility and willingness to accommodate the debtor’s circumstances.
Do these agencies provide consultation services to manage debtors better?
Some agencies also provide consultation services if you need help in avoiding bad debt in the future. They can also help your business improve in-house debt collection strategies as well as assist in creating templates and forms used to demand payment from clients.