While many people cite the position of “debt collection services” as one of the world’s most difficult, few people stop to think about someone who has it even rougher- the manager or owner of a debt collection firm. These are the people who truly take the hit when compliance issues occur or when an employee does not act in accordance with the law. And, in this day and age, where it’s all too easy to not meet the demands imposed by clients and where everyone is having a hard time paying off old debts, it’s not at all uncommon for debt collections agencies to suffer severe financial problems and sometimes even to have to close their doors.
While debt collection companies of all sizes and across a wide range of industries are being affected by the current state of things, smaller and medium sized agencies are suffering the worst, especially within the medical sector. Smaller medical organizations are merging with or being acquired by larger ones, and these large conglomerates tend to go with large, well-known debt collectors, putting the “little guys” out of business when they do.
For collection agency owners who have had to watch their businesses suffer as a result of this type of situation or a similar one, there are options. In some cases, though, the best option may not be the one that seems the most desirable. Sometimes, though, the best deal smaller collection agencies can hope for is to merge with larger ones, in the same way that many medical facilities are merging with larger corporations.
Staffing changes can sometimes be the answer as well. Hiring better, more aggressive collection agents with years of experience can sometimes help to improve earnings in the long run and help collection agencies to stay afloat.