When payments are delayed and the number of outstanding payments start to pile up, it can cause a lot of issues for businesses. It can impact the cash flow of the business and can be difficult to keep track of and recover these debts.
Managing the accounts of any business, even one where customers are paying their invoices on time can be a struggle. So, when customers are not paying their fees and invoices, the strain on the business increases even more as they are now faced with having to try to track down these delinquent customers.
Tracking down outstanding debts and customers is time consuming and not always successful and most importantly, distracts you from the core focus of your business. That’s why it’s a job that is better left to the professionals.
Outsourcing your debt collection can help improve the efficiency of your business and can result in those debts being recovered. If you’re not sure whether you should outsource the recovery of your debts, keep reading to learn more about the benefits of this and how to find the right debt collection agency for you.
Why you should have your debts recovered by a professional
As we mentioned before, debt recovery is time consuming and difficult, and the most frustrating part, it’s not always successful when you’re trying to do it on your own.
Professional debt collection services have built up years of techniques and expertise to make the process significantly easier and more effective. We’ve put together some of the benefits of using a professional debt recovery service, so keep reading to learn more.
Higher Chance of Recovery
Working with a debt recovery specialist means you’re working with someone who lives and breathes debt collection. Many debt collection agencies have a litany of tools and methods available to them to aid in their recovery efforts. Often, they will have many years of experience, and have a number of tactics and techniques up their sleeves to recover these debts. If your business industry is particularly niche, ensure you look for a debt recovery agency who has experience in that field.
Time and Focus
Running a business is time consuming and adding the chasing down of delinquent clients to your already overflowing plate of tasks is the last thing you need. And because you don’t have the ability to focus solely on this task it can mean that it may take longer than it needs to. A debt recovery expert has one task and one task only, and that is recovering your debt. Having the ability to focus on the task at hand often results in faster and more efficient debt recovery. This also means that you can focus on the operation and success of your business.
While you may be concerned with the costs of recovering debts, it’s important to understand that it is not as costly as you may be thinking. Many debt collection services will offer a variety of fee structures, and a lot even offer a “no recovery, no fee” service. A professional debt recovery expert can also offer advice around whether certain debts are worth pursuing, particularly with professional help as well.
A Sense of Urgency
When you enlist the help of a professional debt recovery service, it can show the delinquent customer that you are indeed very serious about recovering the money that is owed to your business. This factor alone can sometimes be enough to make your client pay. And while we don’t like to think that debt collection agencies have a bit of a scary reputation, this reputation can be effective when it comes to recovering debts.
As debt recovery professionals one of the key areas of expertise is in credit management. This means that they can offer relevant and valuable advice to help strengthen your business’s financial position. They also usually have a wealth of knowledge of different business tools and services that can help you with the running of your business and even spot the tell-tale signs of customers that may be a bit of trouble.
What to look for in a debt recovery agency
As you can see, there are many benefits of working with a professional when it comes to debt collection, but with so many services out there, how do you choose one?
We’ve put together some tips on things to look for when searching for you debt recovery specialist:
While you may be using this service to chase down money from customers who have not necessarily acted professionally, you want to work with a debt recovery specialist who conducts their work professionally. This is because your business is being represented by them and will be dealing with clients directly.
You want to work with a team that only uses professional and legal tactics to recover debts. When you’re researching your potential debt recovery team, make sure you read their reviews online!
While many debt collection agencies have years of experience, you want to make sure you’re working with someone that has experience in your specific field. This is important as different debt recovery methods works in different fields. It’s also important as some industries can be quite small and word can travel fast if you’re using someone who is unable to recover these debts effectively or has put people off. Just like the above point, the debt collection expert you choose is representing your business.
3. Effective Communication
Debt recovery can take time and be complicated, so you want to work with someone you feel comfortable with and that communicates effectively. You want someone who is willing to understand the needs of your business and who is transparent about their service offering. This includes transparency about their debt recovery methods, fees, and the debt recovery process. Most reputable debt recovery services will provide regular updates and some even offer online portals where you can track the progress of your debt recovery.
Work with JMA Credit Control for your debt recovery
So now that you know some of the benefits of and things to look for when enlisting a professional when it comes to debt recovery, we’re going to tell you why you should work with JMA when you have outstanding debts.
As a leading debt collection agency in Australia, we have extensive experience across a number of industries of successfully recovering outstanding business debts. Our debt collection process has been fine tuned and developed through our experience, enabling us to not only streamline the recovery process, but also enhance the cash flow of your business.
When you work with us, we can help by:
· Tracking customers for you
Often, delinquent customers will move to other towns, cities and even states without updating or informing the business. This obviously makes it difficult for you to track them down. Our years of experience, training and techniques make light work of finding these customers, making it easier for you to follow up with them
· Work out solutions with your debtors
One of the ways in which we can recover debts is by working with the delinquent customer to reshape and restructure their debt. What this means is we work out a manageable payment structure to help them pay the debt back in the most efficient way possible. While it’s ideal to receive the entire outstanding amount in one go, often this is not possible or manageable for the debtor.
· Manage and resolve disputes
Outstanding debts can be the cause of many disputes between businesses and clients. Our team is adept at solving these disputes and finding the best solution for all parties, all while keeping your business’ reputation intact.
If you’re sick of delinquent customer debts affecting the efficiency and success of your business, we highly suggest that it might be time to work with a professional debt collector.
At JMA, we’ve been helping businesses all over Australia recover their overdue payments for many years. Our professionalism and experience enable us to effectively recover debts for all sorts of businesses. No matter where you are in Australia, if you have an outstanding debt, get in touch with us today on 1300 588 728.