Considering the economy and the lack of flexibility businesses have when it comes to low cash flow, letting old debts go is not something most are willing to do. The solution? Bring a debt recovery company into the mix.
If you’re like most businesses, your decision to go with a debt recovery company instead of trying to track down your debt in-house was made with some apprehension. Turning over your late accounts to a third party can be nerve wracking, which is why you need to do your research to gain some piece of mind.
The industry standard for turning over late accounts was once to wait around four months from the last payment made. Since the recession, that time frame has been shorted to three months or less as businesses cannot afford to do without any of their payments due to them. However, you have to be the judge – If you’ve made several calls to your debtors and have gotten nowhere, maybe it’s time to get the professionals involved. Besides, the older a debt is allowed to become, the less likely you are to see your money again.
If you’re wondering how you’re supposed to find a reputable debt recovery company that will represent your interests the best, try looking for one that is a member of the Association of Credit and Collection Professionals. The Association only partners with the best in the industry and will not tolerate unethical behavior.
A reputable collection agency will sometimes act like part of the parent company, which means the client won’t even know they’re being contacted by a third party. Businesses have different thoughts on this practice – some businesses like this because they don’t want their clients to react negatively to being handed over to a collection agency. Others don’t want to be associated with any sort of collection efforts and believe they benefit by being at a distance from the practice, even though they initiated the move. Be sure the debt recovery company you work with understands how you want them to work with your clients.
To make sure you get as many of your accounts to pay in a timely fashion, be sure your billing department is doing its job and promptly billing clients and following up on the next day after a due payment is not received. It takes a lot of work but can pay off handsomely. Unfortunately, even the most vigilant attempts don’t always pay off. At some point, you’ll have to decide whether you’ll want to bring in a professional. When you do make that decision, you can expect a faster turnaround on collecting debt.
The reason debt collection agencies do a better job than what you can is fairly obvious – they’re professionals, trained in how to communicate with debtors and how to work out payment arrangements. Furthermore, they are equipped with software and hardware you probably don’t have. The technology at their fingertips makes it easier for them to track down even the latest of debtors.
Omega-RMS, llc., is a debt recovery company you can count on to bring you back in touch with those accounts you feared were lost forever. Contact us today and ask about our record, our processes and how we’ve helped other clients like you.