We all know instinctively when it’s time to call in a plumber or an electrician. So why hold off on calling in the experts for other fields? When invoices are not being paid and your efforts to recover the debt are not getting results, a debt collection agency is the most sensible option for most businesses.
Here we look at some of the indicators that its time to speak to a debt collection agency – most agencies will offer a free consultation to advise the best course of action to recover your debt.
Does it make sense to have resources chasing payments – taking them away from your core business?
You’ve heard the old adage that in most businesses 80% of your time is taken up with 20% of your customers? This can be particularly galling if its chasing payment - meaning you are neglecting 80% of your ledger. This is especially the case in smaller businesses where chasing debt in house can be counterproductive; resource should be directed to core services or products. With invoice chasing, the person often tasked with the job doesn’t have the necessary skills to get a successful result. Now would be the time to speak to a debt collection agency who has the knowledge and expertise to get results. This means your team can focus their skill sets on the day job.
In house collection efforts have failed
Debt collection agencies possess the right skills and experience in negotiating with difficult customers. Often, the introduction of a third party can be enough to encourage settlement.
Is the debt significantly overdue?
Statistics show that the longer an invoice goes unpaid, the trickier it is to collect. So act quickly and hand over sooner rather than later.
Your debtor has gone away
It’s unfortunate that sometimes debtors appear to disappear altogether. Good debt collection agencies will have in-house trace services meaning that they can find even the most evasive customers and then the debt recovery process can begin.
The customer disputes the invoice
External help can mediate between parties – obtaining a full understanding of why payment is late. Being less emotionally involved, the debt collection agency can objectively review terms and conditions of sale to assess and resolve the dispute – getting the right result for you.
Tricky customers or slippery fish
We’ve all heard it – a promise to pay but never delivering. DCAs have heard every excuse in the book and have processes in place to commit the debtor to payment – setting up robust, but achievable payment plans. Businesses that find themselves spending too much time on a single customer, will do so at the expense of their other customers and this is a clear indicator that external support is necessary.
Protecting the ongoing business
A third party can remain focussed, business-like and detached – meaning that they are less likely to get emotional. This helps to maintain customer relationships at the same time as sending out the message that repeated late payment will not be tolerated and that recovering overdue invoices is intrinsic to your processes.
Controlaccount Plc has been recovering debt in all its forms for over thirty years and provides a fast, effective debt collection service on a no collect, no fee basis or by utlising the Late Payment of Commercial Debts (interest) Act 1998 and the Later Payment Commerical Debt Regulations Act 2013 (LPA) which help businesses to redress the cost of chasing overdue commercial debts from the late payment charge and interest, meaning that your business could receive 100% of monies owed. To learn more about our commercial debt recovery services, visit https://www.controlaccount.com/commercial-recovery or call our team on 01527 549 522 for a no obligation chat.
FAQ - Pay a Debt
