At first glance, it may appear odd. Someone owes you money, so you spend money to collect what they owe. On the surface, it seems like spending money just to recoup what should already be yours.
However, hiring a professional debt collector is an excellent way to stop the financial drain and come out on top. Here’s how it works.
Get More Back, Sooner
If a debtor owes you money but isn’t paying, you may get nothing at all. Tracking them down and the effort needed to get them to pay up are more expenses. It takes away time, energy, and money.
Leading debt collectors like Summit A*R are trained negotiators who know which buttons to press to maximize debt repayments in less time. You’ll get more in your accounts in less time.
Skip Tracing Done Right
Some debtors work very hard not to be found. They change their business names and even their locations. The best professional debt collectors have skip-tracing departments run by fully licensed private investigators.
The investigators have access to resources that skip tracing departments relying on free tools don’t. They also make prompt reports to the major credit bureaus which change the game.
Suddenly, when debtors realize it will be harder and more expensive to secure a loan in the future, they look at the situation differently — repaying their debt now is cheaper, so they usually pay up pretty quickly.
Even if a company successfully finds the debtor, they spend, time, money, and energy on locating them that could be better used elsewhere in the business. Private investigators find them sooner and free up personnel in your company to work where they’re most effective. Most professional debt collectors don’t have their own private in-house investigator, but it’s worth looking for one who does, especially when there are no extra charges for their services.
Reputations Intact
Hollywood movies make debt collection seem aggressive and unseemly. Sadly, sometimes, debt collectors in real life use hostile tactics, such as threatening language, robocalls, late-night calls, and more.
The best professional debt collectors conduct themselves in a way that always casts your business in a good light. They are genuinely helpful, friendly, and respectful towards everybody in the process.
They don’t judge debtors, who may have very understandable reasons for being in debt. They simply try to find the best path forward for them to get out from underwater.
Asking people for money can be an invidious, uncomfortable task. Professional debt collectors take this off your plate and keep relationships intact, so it’s easier afterwards to keep doing business with customers and partners.
Thankfully, there’s no conflict between treating people well and recouping money. In fact, the friendliest debt collectors recoup nearly double the industry average!Margins are tight in businesses across sectors, and companies have bills and expenses they need to cover. They can’t afford to be out money that should be rightfully theirs. It may seem counterintuitive, but hiring a professional debt collector can net them more of this money sooner and with less stress and wasted energy.
Also Read: How Invoice Factoring Improves Business Cash Flow
