Why Should You Recover Funds through a Collection Agency?

Every business owner knows how essential cash flow management and time management are. To successfully manage the operations and finance of running a business is a challenging task, especially during periods of economic instability. A debt recovery agency is one of the essential services that your business needs to have on call – and this is why:

Your time as a business owner is valuable

Business owners, especially those of a small to medium-sized business are generally pretty busy people. As a business owner, you are responsible for overseeing everything that  your company does – from accounts, to marketing and staff management, let alone the products and services that your business actually provides. 

Put simply: as a business owner, you should not be spending your valuable time chasing overdue invoices. It can be a rabbit-hole of constant following-up, waiting for replies, filtering through excuses and negotiating. By the time you have collected an overdue account, your time (if we were to translate it to currency) would probably outweigh the debt. There are some things that only a small business owner can handle – and your time is better spent on that than collecting accounts.

Hiring a collection agency is risk-free

Collection agencies like ours – that operate on a no-win, no-fee basis – mean that you do not have to make any upfront payments to commence collection activity. Basically, if the debt isn’t collected, then you don’t pay anything. If the funds are recovered, the commission is taken from that amount and the remainder is paid into your dedicated account. If you think about it, the debt hasn’t been paid yet and isn’t going to be paid if you don’t at least try to collect it.

Perception and authority go a long way

When a debtor is contacted by a collection agency, it shows a natural process of escalation. If a client isn’t paying you prior to being contacted by a collection agency, then they probably won’t at all. The fact that collection agencies have partnerships with credit bureaus and they can affect your credit score, often prompts conversations with debtors.  Utilising debt recovery services  shows that as a business and a brand, you take non-payments seriously – improving your reputation and even preventing further non-payments in the future. 

Debt recovery agents are skilled at their job

It sounds obvious, but debt collectors are professionals in their field. It means that they are skilled in dealing with people, weeding out dishonest excuses for non-payments, opening up conversations and much more. Plus, detailed notes and records of conversations are kept, meaning that persistent or changing excuses do not go unnoticed. Professional recovery agents also know the relevant laws and legislations around collecting overdue accounts, saving you time on researching and trying to develop strategies.

Preserve client relationships

It may seem counterintuitive, but by passing on a debt to a recovery agency can actually help you to maintain positive client relationships. Let someone else handle the difficult client conversations for you. If debt recovery is built into your everyday accounting practices, then it becomes a standard process. Debt recovery agencies like Henley Recoveries aim to seek amicable recovery solutions for our clients wherever possible, as we understand the importance of these client relationships. In fact, you can even request that a recovery agency act as an extension of your accounts receivable department!

There are many more ways that a debt recovery agency can help your business to become even more effective. Streamline your accounting processes and refer overdue invoices to recovery professionals for amicable debt collection. Your time and resources as a business owner are far more valuable doing what only you can do – running your business, than they are chasing overdue payments.

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Henley Recoveries Group specialise in cash flow management, accounts receivable and debt recovery. For amicable debt recovery and to improve your cash flow, submit a debt for collection with no upfront costs, and a no-win no-fee structure. You can also book in a consult with one of our debt recovery specialists to discuss all of the options available to our clients.