Top 10 reasons to use debt collection agencies

(Especially if you chose the right one!)

  1. There are a special few (like those at CPA) who enjoy collecting payment on outstanding invoices but for most people it is the last thing they want to do. Even when you are the business owner and it’s your own money, you will often try and find anything else to do but chase those outstanding payments. Why not let a debt collector do the hard slog for you?
  2. Using a third party to collect your payments has an impact. There is a reason Wonga tried to set up fake collection agencies to collect their debts. They knew the psychological power having a third party getting involved can have. Your customer might ignore your statements but when they get a letter from The Credit Protection Association, they are suddenly motivated to pay.
  3. Using a third party for collections actually boosts your brand and name. The debt collector can flush out any gripes or reasons for non-payment for you so you can address the issues and resolve them.
  4. Allowing a third party to field your customer’s issues can mean that you and your staff can maintain a good relationship with your client. It can even boost customer retention. The Credit Protection Association also directs all payments be made directly to you. When your debtor doesn’t have to pay the collection agent then customer good will can be retained.
  5. Letting your customers know you use a collections agent can strengthen your position and let your customers know that you expect to be treated fairly and in turn you will treat them fairly
  6. You want to concentrate on making your customers happy, making news sales and keeping your business running. Why be distracted by debt collection?
  7. Overdue Account Recovery requires particular skills and expertise. You need a thick skin, you need to understand human psychology, you need to be tenacious, a good negotiator and have the ability to track down a debtor. Why not give the work to people who have honed those skills?
  8. Setting up your own internal collection system costs a lot. You need to hire and train debt collectors and manage the operation. You need special systems. It could take a while to set up and there is no guarantee it will work. Why not use someone who has the whole system set up and ready to go.
  9. Debt Collectors have wide experience in the market. Bad payers tend to be serial bad payers.  The debt collection agency may well have dealt with your debtor before for another client and have useful knowledge from that interaction.
  10. And finally Debt Collection Agencies have access to tools you do not. They have developed systems and tools to aid collection that can’t be bought off the shelf.