How do you know when you need the help of a third-party collection agency?
Just imagine that you own a business and you have invested a lot of time and money in it. Everything is going great until you suddenly have a difficult time meeting payroll and paying bills.
Most businesses generally don’t start making a profit right away, sometimes it takes years to turn a profit. But if you are running into debt early on, your business may never get off of the ground. In fact, as much as 80 percent of new businesses fail in the first few years.
If you are experiencing non-paying customers, you are losing money and something needs to be done about it as soon as possible. Partners Financial Services, your debt collections agency, offers the benefits of hiring a third-party collection agency.
Improve Your Chances of Debt Recovery
Since third-party agencies only get paid for the debt that they collect, they have a lot of motivation to be very efficient and get high collection rates. This means that your business has a higher chance of getting the money that is owed.
Offer Expert Advice
You can spend the money and the time hiring and training people to be efficient debt collectors, but that is a lot of money and effort on your part. It is just another aspect of your business that forces you to have to work harder.
A collection agency is already set up to collect debts, all you have to do is make a phone call.
To maintain an in-house collection staff, you need to spend a lot of money on staffing, phone calls, invoicing on-going training and so on. In the end, it might not even be worth the expense.
A third-party agency has already invested the knowledge and expertise and is ready to go.
There is a myriad of laws that govern the debt collection industry. And there are well-informed people who will go after you should you violate any of their rights. It is not worth the headache.
Debt collection agencies are well aware of the laws. Allowing a third-party agency to collect your debts frees you from the legal risks that are involved.
Collection agencies make records of their communications with debtors. Should there be a conflict that arises in the future with a former debtor, the documentation will determine the extensive effort that was put forth in an attempt to recover a debt.
Also, in the event of an audit, the IRS will want solid proof that you did everything you could trying to collect a debt before writing it off and claiming it as a deduction.
People Pay Quicker
When a debt collection agency is hired, people tend to pay up quicker and more often. When they see that a collection agency is attempting to get money from them, some people freak out a little and decide to go ahead and pay up as soon as possible.
If you have questions about debt collections, contact Partners Financial Services.