- April 13, 2015
- Posted by: Taurus Collections
- Category: Uncategorized
Companies look to outsource debt collections when it no longer becomes worthwhile to handle everything internally, taking away precious time from other tasks and stunting growth. When should you decide to call the professionals? The answer depends on how big your business is and the rate of success you have with collections.
Unless you’re one of the lucky few, a third party debt collector is going to be able to deliver higher success rates of partial and full debt collection from overdue customers than you can by yourself. The reason behind that is simply due to human nature. There are going to be customers who never planned on paying their debts and do not feel obligated to heed to your calls and letters.
Boss needs a vacation
Start-up businesses know the importance of time-management. If you suddenly have a spike in late payments, you have to address those problems immediately, all the while handling the core mechanics of your business. Even if you have an amazing team, things can quickly spin out of control and those debts will start seeping into your revenue stream, because you can’t collect fast enough.
Outsourcing is, for the most part, always going to be a cheaper alternative to whatever you can handle internally. After you have already made the usual courtesy letter and phonecall of “pay up”, you should have a team of professionals that can take things from there and get the customer’s attention. At this point it might be worth considering to outsource debt collections.
Taking your kindness for a weakness
One last important point to make about internalizing debt collection, and the argument to outsource debt collections. If you, as the owner, are calling up your customers who either feel too ashamed or too uncomfortable talking about their late-payment behavior, they’re going to try to avoid you. This is wasting your time and your money, the longer you wait to collect debt, the less likely you’ll ever see that money. Outsource debt collections specialists can keep things civil, yet resolute, with a clear message about payments. They will get the best results because their business relies on your business.
There are plenty of companies that specialize in outsource debt collections online and they can provide advice on what is best for your business and what type of tools and resources they can offer you. This should be a long-term investment relationship and not just an emergency band-aid. Prevention is the best way of handling collection of commercial debt.