Collect Debts Fast- Here’s Why It’s Important
When you put a debt collection agency in charge of collecting an outstanding debt on your behalf, you want to ensure they actually collect it fast. Statistically, the faster a debt is acted upon, the higher the recovery rate. This is a generally accepted fact in the debt collection industry. So it’s important to outsource to a debt recovery agent as soon as possible. Here’s why:
- It’s Your Money
You are losing interest or the opportunity cost of that money, so you want it back fast. You have worked hard to provide the goods or services that you sell to your customers, so you deserve to be paid and paid on time. As debt collection experts here at Debt Recoveries Australia, we don’t consider the job done until that debt is collected and the money is returned to you.
- Industry Respect
These outstanding debts are typically associated with services that have already been rendered. You did the work, and you earned the money, so you definitely deserve to get paid as soon as possible. The faster you outsource your debts, the more respect you will have from your clients as it sends a strong message to them and to everyone in your industry, that you are not to be messed with!
Cash is king. As debt collectors, we know that getting any funds we collect back to our clients as quickly as possible is essential so that they can reinvest that money back into their business. We act as an extension of our client’s accounts receivable department. We see ourselves as the lifeblood of the client’s company, since the cashflow depends on us collecting the debts fast.
Every business can benefit from an influx of capital, and if you look at it that way, quick and efficient debt recovery can be that influx for your business. Even bad debts can be outsourced to get quick cashflow.
- You’re Tired of Waiting
In most commercial debt collection situations, the clients who engage us have already been waiting well beyond the original terms for some type of payment. At this point, they’re already tired of waiting, and we don’t believe that it is necessary to make them wait any longer. That’s why we make it a point to return the funds at a much faster rate than is standard for our industry.
Our clients appreciate our quick turnaround times because it reinforces the idea that we are working together as partners.
So, outsource your debts fast, but to who? How do you know you’ve got the right debt collection agency?
Look for these things:
- Testimonials- ask them for names and numbers of current clients
- Service Promises- ask them what their service levels are? Do they have any? Do they promise to action a case by a certain time? Close by a certain time?
- KPIs-ask what their kpis are. Do their staff receive bonuses on what they collect? If the don’t, then they have very little incentive to actually collect your money.
- Client manager- do they provide you with a dedicated Client Manager to look after you? How else are you going to get your questions answered?
- Online access- do they provide this for free? This is a great way to keep an eye on your debt collector, making sure they are doing their job
- Legal letters of demand and access to litigation when you need it- your debt collection agency should have their own in-house lawyers to help with litigation, if needed
Debt collection is crucial for your business. You should not take for granted your pending debts, as it will later on affect your business indirectly and could not focus on the core product/services you offer. It’s not as simple as it may seem, there are different considerations in taking step by step processes for your collection. If you don’t have any luck, you might as well consider partnering with a debt collection expert to handle your debts.
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|About the Author
In 2002, Adam Stewart established Debt Recoveries Australia Pty Ltd, a debt collection agency specialising in the insurance claims industry.
Adam has worked in the fields of motor vehicle insurance and debt recovery for over 12 years, working with some of the largest insurance and debt recovery companies in Australia. Read more