Businesses of all sizes need money to maintain their staff and grow their reach. When your clients have outstanding debts, your company can find itself working at a loss. Collecting those debts can be a time-consuming, expensive, and sensitive matter. For those reasons, many business owners prefer to outsource the task. Hiring a debt collection agency can help get you the money you’re owed, freeing you to stay focused on growing your company.     

5 Ways a Debt Collection Agency Can Improve Your Business

1. Stabilizes Cash Flow

Debt collection agencies work with both sides to develop regular payment schedules and rates. The payments provide revenue for your company and decrease the client's debt. By paying in affordable sums, the client is also less likely to default.

2. Reduces Cost

State and federal debt collection laws are nuanced and complicated. Hiring and training employees to understand them is time-consuming. Setting them up with the necessary technologies is costly. Outsourcing is simpler and cheaper. Collection agencies are staffed with experts who are able to obtain higher percentages of past dues at a faster rate.

3. Preserves Client Relationships

Constantly reminding clients of their outstanding debt can damage your relationship. By hiring a collection agency, the focus shifts away from your company. Agencies can balance being respectful to the client while providing them ways to repay the debt.

4. Increases Likelihood of Repayment

Agencies have a higher success rate of recovering unpaid debts. Borrowers are more likely to comply with a debt collection agency to avoid the legal consequences of defaulting.

5. Minimizes Future Risks

Offering payment credit is always a risk. A debt collection agency can research clients you’re considering doing business with. You'll learn their history, their credit standing, if they pay their debts on time, and if they've ever defaulted. This information will make it easier to choose better clients while minimizing your financial risk. 

If you’re considering hiring a collection agency, contact Joseph, Mann & Creed. They have over 65 years of combined debt collection experience in various industries. Based in Twinsburg, OH, they are devoted to their clients and respectful to debtors. Their reputation has made them one of the 45 companies certified with the Commercial Law League of America. For company updates, connect with them on LinkedIn. To request a quote, call them at (216) 831-5626. For more information on the industries they serve, including insurance, finance, and security, consult their website.