If you’re under the impression that your internal credit control department is every bit as good and effective as an outside debt collection agency, you may just be leaving money on the table!
Nine times out of ten, actual collection agencies are much, much better at getting you the money you’re owed. They can also save you money and time.
You also have to keep in mind that, despite their name, debt collection agencies usually do a lot more than just getting people to pay up. Most agencies can also handle litigation if a debtor is taken to court, do credit and background checks on potential employees or clients, provide information about companies you are considering working with, and more. Having a service to take care of all of these needs for you is incredibly convenient.
With these awesome benefits, you may be wondering why a lot of people shy away from hiring collection agencies. The reason, more often than not, is because of the “shady” reputation many collections agencies have gotten in recent years. While it is true that some debt collection agencies reduce themselves to illegal “scare tactics” to try and collect on debts, the vast majority of them are fully licensed, follow all the debt collection rules, and have insurance to protect you in case they don’t. As long as you choose one of these good agencies, you should have a very positive and helpful experience.
To ensure you do make a smart choice, always do some “checking up” on any debt collection agency you are considering working with. Check out an agency’s standing with the Better Business Bureau and read customer reviews online before you commit to anything. If you do choose the right agency, you’ll enjoy reduced costs and increased profits, which are the two things every business hopes for.