One common question that always comes up in conversations is if it is worthwhile to send small balances that are owed to a business to a collection agency. If sent to an agency with the proper programs and systems then the answer is yes.
A business owner may be surprised to learn that in many cases, outsourcing receivables to a collection agency, even small balances can save that business money and resources that can be redirected to growing a business instead of mailing and calling late-paying customers month after month. http://www.youtube.com/
A few items to consider are:
If the collection agency utilizes a flat fee collections system, then it’s in the best interest of the business to turn that late account over. Typically a flat fee is a much more economical solution and is very attractive to small businesses looking to save money on their receivables. A business gets the authority of a third-party agency and they save money and resources in the process.
Utilizing the professional services of a collection agency is far more effective and cost-effective than going straight to the court system. In some cases a judgment can be secured by initiating litigation but in many instances, a business still has trouble getting paid even after that judgment; which can only cost that business even more time and money.
Find an agency that reports accounts to a credit bureau after a certain timeframe. Consumers that are aware of this may be more apt to settle their account quicker knowing there could be long-lasting effects on their credit.
One more reason to use a collection agency is that if a business has not been paid for their service or product after 90 days, the intent of the customer may be clear and getting professional assistance from a reputable collection agency is in most cases a business’ best move.
“In most cases a reputable collection agency can bridge the divide between a business and the late-paying customer and get that issue resolved in a timely and tactful manner,” states Jeff DiMatteo a Partner at American Profit Recovery. “Businesses that decide not to seek help in their accounts receivables can actually be losing customers by not trying to work issues out.”
More tips on this subject including an educational video can be found at: http://www.americanprofit.net/
About American Profit Recovery:
American Profit Recovery (APR) is a collection agency with offices in Massachusetts, Michigan and North Carolina. Founded in 2004, APR specializes in the collection of third-party debt in industries such as medical/dental, banking, trades, lawn care and other professional services. With early intervention and a strong focus on ethics and diplomacy with consumers, APR works hard to preserve the relationship between client and consumer with an ultimate goal of keeping the business relationship intact. The firm serves approximately 3,500 clients nationwide. American Profit Recovery and their team have earned many awards including Best Places to Work in Collections, The ACA International Foundation Fellow Award and Banker and Tradesman’s Gold Readership Award. 800-711-0023 http://www.americanprofit.net/
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American Profit Recovery is a collection agency with offices in Massachusetts, Michigan and North Carolina. With early intervention and a strong focus on diplomacy with consumers, APR works hard to preserve the relationship between client and consumer.