Enlisting a debt collection agency can feel like big step, but if your accounts team is struggling to reduce aged receivables, feeling frustrated, or simply finding themselves spread too thin, it could be time to call in expert support.
Below are five telltale signs you could benefit from outsourcing your debt collection process:
As with every industry, people are at the heart of success, and smart hiring, matched with continuous training and development, is the recipe for progress.
It is critical to select people with an aptitude for empathy and negotiation. People with strong communications skills and a drive for self-improvement and growth. You should commit to ongoing commercial collections training and development for a successful long-term hire.
1. Debt collection is draining your team
Your accounts receivable team is likely great at their job, but if they are unfamiliar with debt collection, they may not be the best people for this specialist task. In companies where there is no set member of staff allocated to collections, this difficult job can fall to accounts staff, administrators, or even salespeople! Not only does this distract your team from their regular work and cost your company money, but it could also harm your client relationships.
2. Finance staff is feeling frustrated
When account receivables take up too much time, your receivables team can become exasperated. In an ideal world, an email or a call is all it takes to request payment, but when one call becomes several, staff can feel they’ve hit a dead end. However, Professional B2B debt collectors are highly trained and experienced in debt recovery. At Brennan & Clark, our trained negotiators receive around 312 hours per year of training – far above the industry average of 78 hours. That means we know how to get the job done quickly and professionally to achieve excellent returns.
3. Your aged receivables list keeps growing
Getting your invoices paid quickly improves your cash flow. So when accounts go over 30 days, you need to act. In the first instance, customers should receive a late payment notice, followed by in-person calls. Time-consuming as this is, it’s worth persevering as your chances of payment dwindle day by day. Once an account tips over 60 days, or if your aged receivable list is becoming unmanageable, it’s worth enlisting specialist collections support to help you reduce the number of overdue accounts.
4. Customers are taking advantage of your leniency
There are many reasons why a client might miss your payment deadline, but if you have been lenient with late payments in the past, there’s always someone who will take advantage of your kindness. This can be particularly tricky if you are a smaller business, or if you have a pre-existing relationship with the client that you’d like to continue. Handing the account over to a trusted debt collections partner can simplify things, freeing you up to foster great business partnerships, safe in the knowledge that any collections will be handled without damaging customer relations.
5. You’re concerned about bad debt
If you’re worrying about overdue debts being written off, it’s time to discuss your options with a professional collection agency. With the expertise to succeed rapidly where your accounts team has drawn a blank, a collection agency can ensure you take precedence if they owe several creditors. At Brennan & Clark, we also offer analysis to assess whether litigation is a cost-effective means to recovery, ensuring you don’t end up even further out of pocket.
How Brennan & Clark can help:
Our expert negotiation achieves great results, scoring a full 20% above the industry average. That means we collect all that’s collectible, leaving you free to run your department. We’ll even share our in-depth tactics so you can improve your in-house capabilities too. Contact our team today or reach out to us directly at 800-858-7600 for an informal chat about the collection issues you are facing now and how we can help.