Is it expensive using a debt collector?

Many people are worried about using a debt collection agency to collect outstanding monies owed to them. Below are the list of popular worries that arise:

* Not sure of the options or procedure of debt collection.

* You think it might be for large companies and maybe expensive.

* The time it takes looking and finding a reputable collector is too long.

* You think you may lose your customer if the debt chased by a debt collection agency.

* Making the initial call to the debt collector worries you, incase you get signed into a contract.

* Embarrassed about the age of the debt?

* Bad reputation & distrust of debt collectors

* Your customer has not signed a contract so no terms were agreed

* Terms not stated on your customers invoice

The options you have are simple You can:

* Leave the debt and hope your customer pays.

* Write off the debt

* Chase the debt yourself or instruct a collector (solicitor or debt collection company).

There is a set format to chasing debt. Some companies set up 1st, 2nd and 3rd reminder letters with additional calls and emails. Whilst some may have one letter and use calling and emails as reminders. Some companies have a full credit control/accounts receivable policy in place. This policy outlines the monthly procedure to follow and who has overall authority to make a decision on collection methods. It outlines the company policy on stopping service and how to collect the debt legally.

PRO’S OF USING A DEBT COLLECTOR

Answers to the bullet points above:

* The Debt will get collected in contrast to being written off

* Fees work on a no win no fee basis. There are no upfront fees to pay, or a “fixed fee” pricing option is available. Any costs can be recuperated.

* Initial phone call and emails between the collection agency and yourself only takes 10 minutes usually. Or you can submit debts online here

* Our debt collection company is customer led, its professional and always courteous, even for those stubborn customers.

* Debt collection agents are there to collect your money and can almost guarantee that most B2B’s have aged debtors/past due on the ledger. So there is no need to be embarrassed about calling or emailing us.

* In the past customers have been treated poorly and in some cases heavy handed by debt collection agents.

However:

In today’s web-based social media world customer service has become paramount and at the forefront of most companies daily trading policy.

Debt collectors are included in this shift to providing a customer focused service – have a look to see if the collection agency has any reviews or recommendations posted on their web or social media sites. Obviously there will be times when collecting a past due debt that the controller has to apply a stern approach to the collection procedure, but they will be professional and have an open mindful approach to dealing with such debtors.

* When using a collection agency their professional and legal knowledge of collections will aid in collecting those more difficult debts such as those were payment terms haven’t been agreed from the outset.

Using a debt collection agency can be beneficial, cost effective and less stressful than going it alone. Why not consider using the expert service of a debt collection agency next time you have a debtor that you are struggling to collect the payment from.

Think about the relief when you receive the payment!