If you’re the accounting manager or owner of a business, you may have thoughts that you’ll keep collections inside, as you think hiring a collection agency may incur additional costs. Yet professional collection agencies, such as RAB, Inc., are here to provide the help you need to lower your costs. There are many reasons why you should hire a debt collection agency - particularly when you’re running a commercial or health-related business.
There is a need for professional debt collection when all other methods have failed. If you’re collecting from another business you may have discovered that many are poorly run. There can be many reasons why someone has failed to pay your invoices. Even though there can be penalties—interest charges added—many businesses have poor accounting practices and may simply pay bills late. When interest charges have been added, they may be the first to complain that their bill is in error.
Commercial businesses may also try imposing sanctions on late payments. They may withhold supplies or materials until invoices are paid in full.
Many of these tactics may provide the reverse response—no materials or supplies means the businesses can’t finish their product line. It can also create badwill between the two businesses. When the invoices are paid, the company may do business with someone else and you’ve lost a client.
Perhaps one of the best reasons for hiring a good collection agency is to instil trust between businesses, and create a caring and knowledgeable relationship between collector and debtor. Often there are ways to provide solutions, which your company may not have thought about yet.
Since it’s a collection agency’s number one task to collect late payments from businesses, they also have greater success than you would for your own business.
Your accountant or staff may not have the time to spend on collections within your business, as they may be focused on doing other tasks. Often certain businesses can also suffer from multiple late payments. At times, it may be a full-time job having someone repeatedly call a business every day to find out if they’ve sent payment yet, or to get an answer as to why not.
If you have a long list of unpaid invoices, you may have reached the point where you’re uncertain what to do. Your business figures and cash flow may be suffering due to nonpayments of debtors. Heading to court is only a last resort, but it can also be a costly one. It may even have reached the point where your debtors refuse to take your calls, or to set up a meeting with you.
Having an impartial third party—a collections agency in this instance—may be your last resort. A good collection agency, such as RAB, Inc. has high standards when working with commercial or healthcare businesses, and it makes sense to have them take over the essential task of collections.
Our company is passionate in what we do. We aim to deliver the best recoveries, but still maintain honesty and integrity. We feel that it’s important to maintain high moral and ethical standards so we retain our good reputation in the industry. We want to have the best relationship with our clients so you have confidence and security in working with us. Finally, we are also dedicated to what we do. We work with each client to understand your specific needs. It’s important to gain this understanding so that our partnership together is valued, and that we keep on working together.
If you’re interested in learning more about how RAB, Inc. can solve your company’s collection issues, please call us now.