Cash is King. We cannot stress it enough. When the world was halted by the pandemic, many businesses suffered, and even established enterprises were unsparingly forced to shut down.
No establishment would survive with negative cash flow. Accounts receivables must always be higher than the payables. So, customers not wanting to pay you after receiving your services is a situation you shouldn’t tread lightly. When clients refuse to settle a balance, it’s the business owners’ prerogative to pursue them directly or tap a professional collection agency.
Better Resource Allocation
Time is precious when running a business. Hours spent on sending collection letters, monitoring account status, and attending phone calls would divert you from your primary duties. Imagine the amount of time you lose depending on how large the debt you are trying to collect.
Transfer the burden of pursuing debts to a collection agency. The professionals would get the job done while you concentrate on other essential aspects of the business. A smart move would be to improve credit processes to prevent abusive customers from taking advantage of your current structure.
Successful Debt Recovery
Collection agencies appear intimidating, and a regular debtor would know better than to prolong the balance settlement. Professional collectors are well trained and know the right tricks to get debtors without violating any law. Among the proven and useful tricks include using the collection laws to a maximum advantage, which could potentially protect your business from legal repercussions.
Finance expert Shane Perry of Max Funding advised, “Collection agencies are single-mindedly focused on recovering receivables. That is why they have higher success rates than in-house. They have the appropriate tools and services to carry out the task effectively, plus you would make your employees less frustrated because, honestly, who loves collecting debts?”
Documentation and Legal Protection
Eliminate or minimise your risk of ending up in a legal battle. With all the rules, regulations, and laws in the finance industry, pursuing debts could be overwhelming and complicated. Additionally, a debtor might sue if their rights are infringed. Not being familiar with the laws governing debt collection could cost you more than the receivables.
Professional collection agencies are adept in the laws and legal processes of collecting debts. Allowing them to collect on your behalf would help you navigate these laws and protect you from potential legal trouble. If and when you need to go to court, collection agencies could provide you with adequate evidence of collection attempts and ample documentation.
The same documentation serves as proof should you opt to file a tax deduction as payment for the debt. Records show several lawful collection attempts before the actual deduction.
Drake & Associates legally support Central Coast Hunter Collections. If a legal action commences, the documents would be charged according to the court’s prescribed costs, unlike other firms’ uncapped legal fees. Other collection agencies do not offer the same service.
Central Coast Hunter Collections is a mercantile agency offering Debt Collection and Debt Recovery as some of our services. For additional information, contact us at (02) 4333 1690 or visit us Here.