It may seem counterintuitive to hire somebody to collect payments you should already possess. However, professional debt collectors are very in demand, and when you look closer at what they do, their popularity is no surprise.
Please read on to better understand how professional debt collectors can boost your business.
Track Debtors Sooner
Even if your HR personnel could locate a debtor trying to change their name and location to avoid being found, the burden of time, money, and energy spent on the effort would surely offset the gains. And that’s if you can locate them.
When someone owes money, companies either need to decide to incur the costs of trying to find them and their assets or cut their losses and let it go. It’s a tough decision because both have risks. Hiring a professional debt collector like Summit Account Resolution is a game-changer because it eliminates the risk and unpredictability.
They do find them quicker and make timely reports to all the credit bureaus, so it’s in the debtor’s interest to pay up. Otherwise, it will be harder and more expensive for them to secure a loan later on down the road.
Keep Relationships Positive
What’s the only thing worse than being asked for money by someone to whom you don’t owe? Being asked for money by someone you do owe money. Businesses need to collect payments owed, but they don’t want to push away customers or B2B partners, even if the risk is only about holding them to their initial agreement.
Customers may sour on a business that’s trying to collect what’s owed. It may not make sense, since the agreement was mutual, but psychological speculation about possible explanations is moot — companies want their money, and to keep customers happy.
Professional debt collectors let you insert them between a customer or partner and their money, so companies don’t need to play that role. It’s also vital to find a debt collector who treats people with dignity seriously. Unfairly, or, let’s admit it, fairly, debt collectors have a reputation for demeaning tactics, aggressive language, robocalls or late-night calls, and other methods companies don’t want to be associated with.
You’ve worked hard to entice customers and build your brand over the years. You don’t want to distance people from your business now, especially when they’re fond of your company enough to buy your product. It’s better to keep them happy and remain long-term customers or business partners.
Employee Overpayment
Sometimes, technical glitches, accidents, or fraud can result in overpaying employees. Salaries and wages are already a company’s biggest expenses, and a company can’t afford to pay more than they agreed to.
Employees shouldn’t receive free training or ongoing education from work only to abruptly quit and work elsewhere. Maybe they’ve improperly claimed a business or travel expense due to a misunderstanding, or perhaps they purposely tried to get the company to pay for personal expenses.
Either way, companies shouldn’t be on the hook for it. Professional debt collectors clear it up and let business leaders focus on what’s ahead.
Professional debt collectors wouldn’t be in business if they cost more than they delivered. Consider hiring a professional debt collector to enjoy the direct and intangible benefits described above.