A collection agency can save you a good deal of time by taking over the recovery of your delinquent customer accounts. They can also improve your cash flow and put money back into your business – money you can use to expand your business.
Your agency should be a trusted partner, just like your attorney, banker or accountant. To get the very best results, you must communicate your collection needs, and find an agency that will best meet them.
We always recommend that you have a good system to collect as much as you can on your own. However, there comes a point when you need to bring in the experts. So how do you know when the time is right to hire an agency?
If you and your staff seem to be spending more and more time chasing delinquent customers, or if you do not feel the time you are spending is worth the amount of money you are recovering, it is time to hire a collection agency.
If the number of delinquent customers over 90 days past due is increasing, it is time to hire a collection agency.
If you have an increasing number of customers who you cannot locate, it is time to hire a collection agency.
If your cash flow is terrible and you are having trouble paying your own bills because customers are not paying you, it is time to hire a collection agency.
If you are borrowing money to keep your business going but have a good number of outstanding receivables, it is time to hire a collection agency.
If you have tried Small Claims Court without success, it is time to hire a collection agency.
Hiring a good agency could be one of the smartest decisions you make for your business. If you are letting customers go more than 90 days past due, you are doing yourself a disservice. The collection agency fees are not that steep, and increased cash flow will make it worthwhile.