When Should You Hire a Collection Agency?

Business owners often struggle to collect overdue payments from difficult clients. They are forced to make several calls, send messages and letters, and spend a lot of time recovering their money. This can interrupt the day-to-day business operations, stall cash flow, and have an impact on the financial health of the business. At Advantage Recovery Services, we offer a wide range of services that can help you collect adebt without compromising your reputation. 

When should you hire a debt collection agency? 

Some business owners are hesitant to hire a debt collection agency and keep giving clients second chances. This can prove to be detrimental to their business and the invoices due can pile up. Here are some tips that can help you make the right decision: 

• Send the accounts on time - If the accounts are overdue by 90 to 120 days, send it to a debt collection agency. It’s more difficult to collect the debt after this time period has lapsed. The chances of debt recovery are lower if it’s allowed to linger for too long.

• New customers - If new customers fail to respond positively to your first personal attempt to collect the debt, hire an agency to handle the job. You don’t have a history with these new customers so you’re not familiar with their financial behavior. It’s best to let professional collectors handle the task.

• Payment plan - If customers don’t pay even after you’ve negotiated a convenient payment plan with them, they’re unlikely to pay despite your persuasion. A credit collection agency might be able to recover the money.

• Customer denies responsibility - If the customer denies responsibility for the debt, you won’t be able to recover it without the assistance of the debt collection agency.

• Unfounded complaints - Some customers will make unfounded complaints against the product or service as an excuse to not pay the money. Experienced collectors know how to handle this and will make sure the money is recovered.

Collectors will also help you collect money from clients who are known to be financially irresponsible. Our team has worked with different kinds of businesses and uses fair collection practices. 

If you want to know more about our credit collection agency and the range of services we offer, don’t hesitate to contact us at Advantage Recovery Services. You can call us at 479-431-4478 or use our online form.