Late or missing payments can cause considerable damage to a business’s cashflow. This can cause payment issues with suppliers and can be fatal to a company. It can be considered overwhelming to employ the services of a debt recovery agency, the thought of endless paperwork and late night progress meetings all with a risk of no return, but this is not the case. To ensure that you are choosing the right agency to work with and save yourself the headache, there are some questions that you can ask.
Why – Why choose a collection agency?
It is always best to weigh the pros against the cons to evaluate the benefits that working with a collection agency will bring to your business. If the number of unpaid invoices that you have is getting difficult to keep track of, it may be time to employ the services of a debt collection agency.
A good collections agency will employ highly trained staff and have knowledge of best practice and procedure. Giving your business unrivalled access to collections expertise that a lot of in-house teams are unlikely to have. A collection agency should work tirelessly to recover any debt that is passed to them, giving you more time to chase new debt or spending time cultivating relationships with both clients and suppliers. Passing debt to an agency means that it doesn’t get written off straight away, meaning hundreds, if not thousands of pounds, can remain in your business.
What – What do you want to outsource?
Some businesses will only outsource debts that they have failed to collect on after months of chasing some will pass over any debt that they have as they do not have the time or the resources to chase them internally and others will only pass over aged debts so they can focus on newer debts.
The decision of which debt to outsource is entirely up to you, a good agency will work alongside you to build a strategy to best recover the debt. Here at Commercial Domestic Investigations we recognise that all debt is different and there is not one, “cure-all” solution. Our team are highly trained to follow best practice to recover any debt that is owed to you.
When – When is the right time to outsource?
Ultimately it is your decision as to when you want to outsource any debt. Some businesses prefer to chase their debt internally until all avenue has been exhausted and then pass the debt over to be recovered, others will let an agency recover all the unpaid invoices, no matter the time or size of the debt. Statistically, the sooner you outsource the debt the easier it becomes to collect. An aged invoice means that the debtor may be harder to trace, it is also harder to prove that the product or service was received.
Where -Where do you find an agency?
Recommendations are the best place to start. Speak to friends, colleagues or other companies with whom you have a good relationship. References that come from these people are likely to be very honest and give you a true idea of what it is like to work with them.
Using a search engine can also give you a good idea of agencies that you may not have heard of but that may have the expertise and knowledge that you are looking for.
Who – Who do you choose?
After doing some research you are likely to have a list of potential agencies that you are interested in. It is important that you consider who will benefit your business the most. Consider their expertise, have they done a lot of work with clients in your industry or are they an agency specifically for your industry. Using an agency that has specific knowledge means you avoid having to explain how your business works. The recommendations that you will have collected will go a long way but ask the agency themselves for recommendations and follow up with the businesses that they give you. A reputable agency will be accredited by the Credit Services Association (CSA). This means that the agency will operate within regulations and work ethically and fairly for its clients.
Here at Commercial Domestic Investigations we understand how much damage can be made by unpaid invoices. Recovering your debt is important to us and our highly motivated account managers will work with you to understand the issues that are leading your invoices to be left unpaid. At Commercial Domestic Investigations, we are renowned for our efficiency and professionalism. If you want to speak to a member of our friendly team about how we can help your business contact us on 08444 159200 or email firstname.lastname@example.org.