5 Reasons to partner with a debt recovery agency
When it comes to operating a small business, the issue of cash flow is one of the biggest hurdles in keeping a healthy business. With the recent pandemic affecting invoices being paid on time, businesses of all sizes are on the brink of closing doors as a result of poor cash flow due to bad debts.
Here are 5 reasons why your business should partner with a debt recovery agency to ensure your business cash flow remains in the green.
1. Time is money
When it comes to running a business, the old saying that time is money could not stand any truer. By focusing your energy on what you do best - running your business, you enable the growth of it while allowing others who are good at their job of debt collection to focus on theirs.
By engaging a debt recovery agency, you remove yourself from the process (and effort) of chasing payments, managing administrative debt collection processes, and dealing with correspondences unrelated to your business operations.
Not to mention, debt recovery agencies are experts at recovering business debts which mean that you will stand a better chance at getting paid for your services or delivered goods than if you had to do it yourself without the know how.
With sound negotiation processes, reasonable and practical debt payment solutions, as well as a tactful and persistent understanding of human psychology, a reputable debt recovery agency will have the expertise in collecting money owed from your customers or clients.
2. A strong influence
Receiving an official debt notification from a debt recovery agency is more impactful than receiving an email or phone call from your business.
The psychological element of having a debt collector chasing you for money you owed can be an intimidating prospect, which often results in a quicker debt recovery. Debtors are also aware that ignoring demands for payment will not work with a debt collections agency as these agencies have procedures and protocols to follow until a debt is settled.
3. Maintaining a strong brand reputation
When you build a business, you want to be seen as an authority that takes action when wrongdoing is done. By engaging a good debt collection agency, money matters can be handled delicately and sensitively to ensure that business relationships with your customers and clients are maintained. By doing so, you will be able to continue doing business with your customer or client once the debt is settled while saving face for your customer or client.
Do note that working with a debt collection agency should only happen after attempts such as emails and phone calls have been made to resolve the overdue invoices.
4. Makes it clear that your payment terms are serious
Sending a clear message regarding your payment terms and processes to those who do business with you is critical to operating a successful business. By engaging a debt collection agency to recover your business debts, you exemplify your expectations of customers and clients to abide by the payment terms agreed. It also sets an expectation that you will return the same respect when it comes to meeting contract terms in their favour.
5. More efficient and effective
Faster resolution means stronger cash flow, and given how the debt recovery agency’s sole purpose of existing is to recover debt, they can focus all their time and energy in recovering your business debt.
As a business owner, it may be tempting to write off a debt as a bad debt when unpaid after a long time. However, partnering with a debt recovery agency will help you mitigate your losses and collect money owed to you more efficiently and effectively.
Online debt recovery platforms such as DebtForce have proven to be more beneficial for small businesses looking to recover debt as you are given more control in managing your debts through live tracking.
Learn more about how DebtForce can help your business collect its debt today.