Outsourcing collections can be an effective method of recovering payment from bad debtors. In some cases the only prompting a debtor needs to pay is a letter advising them a “Debt Recovery Specialist” has been appointed.
Delivering value from outsourcing is paramount in helping to reduce bad debt, expense and collection costs. In this highly competitive world, we all understand how much it is prominent for one to be wealthy to run a successful business. Especially for a start-up company, a healthy flow of cash means a lot and has a vital impact in business growth.
Chasing up payments with customers is not only a hassle but time consuming. No organisation wishes to have their money stuck with any of their customers, for a long time! After all, overdue payment is the most serious cause of damaging the future business, making an organisation's growth at risk.
It can often feel like a bit of a risk employing a company to recover debt from someone you don’t think will pay. Therefore, it would be easy to surmise that you be more out of pocket due to the cost of outsourcing. Most recovery specialists do not take any fee unless they are able to collect the debt you are owed, so there is no risk of being more out of pocket.
Why do we look to outsource?
- Lack of internal resource to create enough scale and speciality in this area
- Desire to access specialist skills or technology
- Reduce operational costs, saving valuable time and resource so you can focus on what is important growing, which is growing your business
- An extension of your internal business improvement, migrate risk
- Improving cash flow by dramatically decreasing the amount of bad debt you need to write off each year
- Specialist services – Tracing, Litigation, or Field agency work
- Performance indicators to measure a portfolio's behaviour and trends
- Sending out a clear message to other customers that late payment and bad debts will not be tolerated, ultimately ensuring you are top of the list of people to pay
Outsourcing your bad payers to Debt Recovery Experts has many advantages for all types of business owners. What is great about most debt collection services is that they will not charge you unless they are able to recover the debt, so you have peace of mind you won’t be out of pocket. You could save on legal costs and further stress, if you have the hassle of having to chase up the Court, constantly making phone calls.
There are still a lot of business and individuals out there whose finances remain tight. Outsourcing strategies will deliver mutual benefit, resulting in strong, trusted, flexible and professional working relationships that will continue to grow. There really is nothing to lose and only your outstanding payments to gain.
I hope this information is useful and that some of the advantages pointed out has given you a clearer picture of why “Debt Recovery Specialists” like Spratt Endicott Solicitors can really assist with debt collection. We have highly experienced and specialised collectors and we will never damage the relationships between you and your customer while collecting your money.