Many companies are reluctant to put a debt collection agency to for them. The number one reason is that they fear adverse reaction from clients, which will result in a negative public perception of them. Companies that shy away from bringing a debt collection agency to the table would rather not collect on receivables then tarnish their brand.
This way of thinking is not cost effective, nor is it accurate. There have been a few badly operated debt collection agencies that have used unethical and illegal tactics to collect debt, but they are easily avoided when a little research is carried out. Companies that only pick agencies that are members of the Association of Credit and Collection Professionals are assured that they are working with a top-notch agency capable of providing results, but not at the expense of the brand.
So, what are some of the best benefits to partnering with a debt collection agency?
1. In-house attempts are risky and not worth the effort.
It’s rare that a business will have staff members trained to collect on debt. It’s even more rare that these trained members will have the software and hardware that professional debt collectors use at their fingertips. Without the proper training, your in-house attempt could actually do more harm than good. Rather than pay staff members to do something they aren’t qualified to do, put them on more meaningful tasks associated with your industry and leave the debt collecting up to the professionals.
2. Debt collection agencies can have success when you don’t.
You might think that if a customer won’t pay you, they won’t pay the agency you’ve hired to get your money back. You’d be wrong. Debt collection agencies can report delinquent debt to credit bureaus, and consumers don’t want their credit score to be affected. Also, once the debt collection agency is brought in, the delinquent consumer realizes that the debt will not go unnoticed and is more apt to pay up.
3. Old debt is nearly impossible to collect for the average organization.
Once a debt goes beyond the 90-day mark, the odds that you will get anything are slim. However, debt collection agencies specialize in old debt and have methods of tracking down delinquent customers who have moved and consider themselves untraceable.
4. Early intercept recovery is often part of the strategy.
Debt collection agencies can help your company identify problems before they become an issue, which means the late-paying client will get extra attention and become less likely to pay late.
5. You retain access to all accounts.
If you’re afraid that you’ll lose control of your accounts once they’ve been taken over by a debt collection agency, consider that the top agencies have performance analytics tools that give you complete insight into the collection process. You’ll have complete access to all the information on all of your accounts.
The professionals at Omega-RMS are trained to industry standards and beyond. As a member of the ACA, Omega has staff members that are among the best in the industry and can help your business recover overdue payments in an ethical manner.