Has your business been trying to decide whether or not to use a debt collections agency to recover bad debts? We’ve compiled a list of the benefits of using a collections agency.. read through to learn how it could help you!
There are laws that rule how collections agencies can operate that vary from state to state. Collections agencies and their employees are highly trained in these laws and strictly adhere to them. If they don’t, they face hefty legal and monetary repercussions. Businesses who try to collect debts on their own my accidentally break on of these laws, and find themselves facing major consequences.
Using a collections agency to go after debts removes a business from the risk of breaking a law when trying to navigate the numerous collections regulations.
Increase in Cash Flow
Did you know that 82% of businesses fail because of cash flow problems? Now more than ever, having a consistent cash flow can be crucial to a businesses ability to stay open and operate. Having any number of accounts that are past due will only exacerbate any cash flow problems a business is having. Collections agents have specific and detailed training on how to recover accounts and money owed.
Enlisting the help of a collections agency to recover debts can significantly improve and keep cash flow under control.
Faster Payment of Debts
When contacted by a business for debt collection, most people know that they don’t face any consequences for avoiding the debt. However, if they are contacted by a debt collections agency, they’re sentiments usually change. They know that they now face damage to their credit score, and possible legal action.
Whenever a debt collector contacts a debtor, they take detailed notes for their records that go over the details of the interaction or attempt to interact with the debtor. If a business should ever decide to take legal action against a debtor for an unpaid account, they will have a detailed log of all of the attempts made to resolve the debt. Additionally, if a business needs to claim any bad debt as a write off, they can provide this documentation to the IRS to show that they made every effort to recover the debt.
Getting You Back to Business
At Agency of Credit Control, we know that dealing with bad debts in house only takes away from your core business activities, and we want to give you the freedom and peace of mind to turn your attention back to those.
Agency of Credit control is one of the oldest and most respected collections agencies, and our highly skilled team is dedicated to recovering the money that you are owed. With 60 years of experience and cutting-edge technology on our side, we think you will be pleased with the results that we return.
Want to learn more about the benefits of using a collections agency? Get in touch with us here!