These Are the Benefits of Outsourcing Your Debt Collection Needs
Categorised in: Our Blog
You can run into delinquent accounts regardless of the size of your enterprise. Customers who don’t pay on time or simply refuse to pay can hurt your ability to do business. Here, you may either try to recover this revenue yourself or leave it to your accounts department.
At Summit A*R we have over two decades of experience in the debt collection business and are proud to have a recovery rate that’s twice the national average. We believe that when it comes to revenue recovery, your best option is to outsource the job to a commercial debt collection agency like ours. Here are a few compelling reasons why:
#1 A Lower Cost of Recovery
Your accounts department is busy as it is. Asking them to chase debtors will take up valuable resources. From sending invoices to making phone calls to issuing demand letters, the process can be time-consuming. You may consider hiring a full-time collections staff or retraining some employees to play the role of collectors, but this isn’t cost-effective either.
The best option is to hire a company like Summit A*R. We’ve been in the debt collection industry for over 23 years. Our rates are reasonable, and we don’t demand any payment upfront. We only take our fees if we recover your revenue.
What’s more, we don’t have any mandatory minimums. You don’t have to promise us a certain number of accounts to partner with us. This is beneficial to you because we have the resources to adapt to ebbs and flows of the volume of your outstanding accounts.
#2 You Can Preserve Your Reputation
It can be easy to lose your cool if you’re chasing outstanding debt that’s important to the survival of your business. Likewise, your accounts department may not have the training or experience to maintain a diplomatic tone with a delinquent customer.
However, remaining professional is crucial to successful debt recovery. If your debtor feels harassed or threatened, then they may refuse to respond to your collection efforts. This is just bad for business. You may lose the customer, face a legal battle, or lose other clients.
For Summit A*R, it’s business, not personal. We follow a “P.H.D. Philosophy” (Preserve Human Dignity). This means that we pledge to conduct ourselves with professionalism and integrity at every step of the debt recovery process. As an ethical debt collection agency, we don’t threaten, harass, or intimidate customers. Instead, we treat them with dignity and respect, and it works.
#3 Faster Recovery Times
A big advantage of working with us is that you’ll get an external team of professional debt collectors who have a high success rate and do this for a living. Your or your in-house collection team is unlikely to have the same efficiency as a team of dedicated professionals. Recovering revenue faster will allow you to pay your fixed costs on time and improve your profitability.
#4 Fewer Instances of Bad Debt
Statistics suggest that debt grows harder to recover with time. The longer your business takes to recover revenue, the greater the chances that you may have to write it off. That’s why it’s important that you turn to us quickly. We have the tools and resources that you do not.
- While your customer may ignore your invoices, they’re more likely to pay attention to us. Sometimes, an official demand letter is enough to recover payment within days of placing the account in recovery.
- Most debtors are good people who want to clear their dues. Using skilled negotiation, we can convince them to pay their debts by presenting them with more manageable options.
- Stubborn customers usually pay their debts when they realize that their credit rating could be adversely affected. Unlike your business, we can report a debtor to the three major credit bureaus.
- As a last resort, we also offer full-service litigation. If a debtor simply refuses to pay, we can take them to court after conducting extensive cost-benefit analysis. Here, we’ll only proceed with your permission. If you don’t wish to pursue legal action, we will return the account to our recovery department for further action.
#5 A Collection Agency Is Good at Finding Debtors
Sometimes a customer will simply skip town to avoid paying their debts. This is especially true for certain types of industries, like self-storage companies. In such a scenario it may be difficult for you to find your debtor.
At Summit A*R we have an excellent skip-tracing department that can trace people and their assets. We use a wide array of resources, including databases and skilled private investigators to find debtors who don’t want to be found.
What’s more, we’re well-versed in a variety of local laws, guidelines, and statutes of limitations. While you may feel intimidated if your customer is in an unfamiliar state, our experienced staff knows exactly how to proceed. If you feel that your customer may have crossed state lines, then get in touch for more info about how Summit A*R can help you.
#6 You’ll Feel Less Pressure
A reason why many businesses struggle to recover revenue is that chasing delinquent customers can be stressful. This is especially true if you’re personally involved in the debt recovery process. Sending regular emails, invoices, and demand letters to no avail can be disappointing. Dealing with broken commitments from customers can be trying. Some businesses even confess to writing off debt to alleviate the stress.
Let Summit A*R take the pressure instead. We’ll take all the action that’s required to recover what you’re owed. So, sit back, relax, and check the progress of our recovery efforts on our platform.
At Summit A*R, we offer other advantages too. You can use tools on our platform to improve the efficiency of your business. For example, we have a free-to-use days of inventory on hand calculator on our website that can help you calculate how soon you would completely exhaust your inventory if you stopped ordering merchandise today.
These are the six main benefits of outsourcing your debt collection needs to an agency like ours. By partnering with us you can quickly improve your accounts receivable turnover ratio while freeing up resources to improve your profitability and expand your business. Give us a call, send us an email, or request a callback to get expert advice from our collections team today.