It’s simple — your business needs to collect payments on time in order to survive the current economic climate. While there are many steps you can take to do this, one of the most effective options is to partner with a reputable and ethical debt collection agency.
For example, the Summit A*R collection agency boasts twice the national recovery rate without using unsavory debt recovery strategies like robocalls, misrepresentation, etc. In fact, they’re one of the few debt collectors to carry a “P.H.D. Philosophy” (Preserve Human Dignity), which means they treat all debtors with dignity and respect.
While your business probably knows the value of partnering with a renowned team of professional debt collectors, it may not know when to reach out to one.
Here are some indications that you need professional help with revenue recovery:
1. Your Debtor Refuses to Respond
Various studies show that debt grows harder to recover with time, so it’s critical to seek professional services as soon as your debtor stops responding to your phone calls, emails, and invoices. An ethical agency can advise on how to proceed with a long-term success strategy.
If you wait too long, your debtor’s other creditors may reach them before you, draining their remaining resources.
2. You’re Getting Frustrated
Any debt collector worth their salt will tell you that it’s critical to maintain a friendly yet professional and stern tone with your collector. If you get frustrated or angry, then not only can your attitude permanently damage your relationship with your client, but it can delay your payment even further.
Here, a licensed professional with years of experience negotiating with debtors is an excellent option for your organization.
3. YourReceivables Turnover Ratio Is Low
Your receivables turnover ratio is a measurement of how effectively your business collects debts. If your organization has a low A/R turnover ratio, then it could be a sign that your in-house collections team needs serious help.
A good collection agency can take over your A/R cycle and convert your unpaid invoices into cash faster, allowing your business to focus on profitability.
4. Your Debtor Skips Town
It can be incredibly frustrating for a business when a debtor skips town. In this economy, you need all the revenue you’ve earned and can’t afford to write off the debt. Likewise, you probably don’t have the resources to locate delinquent customers. Even if you find them, how can you collect payment if they’re halfway across the nation?
Your best bet is to partner with a collection agency that boasts a robust skip tracing department. The right agency can locate your debtor and their hidden assets in no time. If they have a strong legal team, they can also start legal action against stubborn debtors. It’s essential to act fast if your ex-customer has left town because the statute of limitations passes quickly in certain states as far as debt recovery is concerned.
Remember, your business deserves payment after rendering goods and services. Whether you need your revenue to meetcosts or invest in new opportunities, you need a good debt collection agency if your unpaid invoices are piling up.