Small business owners are busy. They need to grow and manage their businesses. Small business owners do not have a great deal of extra time. Is it a worthwhile use of their time to hire a collection agency for bad debt recovery?
What are the alternatives to hiring a debt collection agency? Well, in-house collection is certainly an answer for some files, but it is one step in the bad debt recovery process. Companies should try for a limited time, perhaps 90-120 days to collect debt on their own, but delaying much longer can be counter productive.
Another alternative to hiring a collection agency is to “write off” the bad debt. If you are a small business, however, you will likely see no tax advantage to writing off the bad debt, so that “writing off” the debt basically means forgiving the debt.
How much debt are you willing to forgive? Would you accept partial recovery of the money owed to you, rather than nothing at all?
A agency should act as your partner and make it easy for you to submit business to them. Most collection agencies work on a contingency basis, which means that they get paid when they recover money for you. There are many ways to boost your collection agency results.
Something IS better than nothing. What are you waiting for?
Looking to hire a collection agency but not sure where to start? We can help?