Wednesday, May 6, 2015

Why Your Business Needs a Collection Agency

Unpaid receivables are the bane of any business’s existence. While there are many things you can do to reduce the likelihood of not getting paid, there’s not a whole lot you can do to stop non-payments or reversed charges entirely. As such, it’s smart to have a strategy in place to recoup money you are owed. One of the best things you can do for yourself in this regard is to hire a quality collection agency.

A lot of people are wary about hiring a collection agency, and indeed, they should be. The wrong agency can do more harm than good. Even if it recoups money, if its tactics are too aggressive, it
could end up costing you clients and your reputation, both of which are far more valuable than a few lost dollars. None of that means you shouldn’t hire a collection agency. Indeed, there are many reasons why you should; you just have to make sure you hire the right one.

Don’t Do It Yourself

A lot of businesses make the mistake of thinking that they can recoup lost funds and reach out to delinquent clients on their own. Unfortunately, however, this often turns out to be a much bigger and more complex process than they bargained for. Hiring and training inside people to act as collections professionals is expensive and can often end up costing more than it recoups. Furthermore, people who aren’t familiar with collections can often end up being abrasive and offensive, costing you your money and your reputation. It’s much cheaper, easier, and more efficient to hire an outside collection agency that knows how to work with clients respectfully and effectively.

Power Tools

You should also keep in mind that professional collections agencies have access to powerful tools that you do not have. They often equip, for example, a flow manager whose job it is to follow up with clients who have already made payment plans, as well as power dialing tools to maintain efficiency and privacy and connections with credit reporting agencies. It’s costly to buy all these tools and services yourself and quite cheap to hire an outside company to take care of these matters for you, thus making the choice obvious.

Smart Hiring

It’s obvious that hiring a collections agency is the smart thing to do. However, you need to make sure you hire the right one. You don’t want an agency that is going to harass and belittle your clients because that just ruins your reputation and keeps clients who get caught up from coming back. Look for a collections agency, such as Kinum, that treats your clients with care and kindness and that, no matter the outcome, will leave a positive impression on everyone your business comes into contact with.

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