Many business owners know a small amount about the concept and process, but the truth is that unless you’ve worked with one directly, a lot of that is based on assumptions. And you know what they say about those!
Today, there are many myths that surround debt collection agencies, and if you want to work with one, then it’s vital that you understand the difference between a reputable agency that is there for your needs; and scammers who are just interested in making money out of your unfortunate situation. Hiring the services of a debt collection company helps you to focus more on other aspects of your business. So, here are 7 myths about debt collectors, busted.
Only Large Companies Require Debt Collection Services
Often, big companies hire the services of debt collectors to keep on top of a volume of debts. However, the benefits can be enjoyed by small companies too. Whenever you find your company is in a situation where you need to recover debts, you can hire a debt collection agency. Debt collectors understand the laws governing small business, and it makes the whole collection process simpler and painless for you as a busy business owner.
In business, time is money. The amount of time you are likely to spend chasing debts can be costly. However, if you have a trustworthy debt collection agency, it can easily take care of the task for you in a timely and cost-effective manner on a case-by-case basis, without costing you a fortune.
They Damage Relationships
Debt collection agencies do not damage your relationships, because they work in accordance with the law. Collections teams are highly trained, polite and work efficiently to maintain professionalism for enhanced customer relationships. Collectors will work according to your preferences on how to deal with customers, so you can be sure your brand is being represented properly and your relationships preserved.
Debt Collectors Call Whenever And Wherever
Reputable debt collection agencies will normally contact debtor companies during working hours, unless they have specifically agreed to be contacted outside of business hours. Whilst there are no specific laws about what time debt collection agencies shouldn`t call, your individual debtors should not be called at 'unreasonable' times. Most people would agree that calls before 8am are too early, and calls after 9pm are too late. But circumstances may be different, for example if your debtor works night shifts.
Threats of Criminal Action
Debt collectors should not give the impression that not paying debts is a criminal offence, as for most debts, not paying is not a crime. Threatening people just isn’t how the industry works. So any debt collection agency that suggests criminal charges, or any related threats is acting against the law, and can be punished for it. Generally, there is a legal process to be followed for collecting debts, and debt collectors will follow that process to the letter.
You Should Wait Until You Have Accrued Debts To Hire A Collector
Having huge piles of uncollected debts can easily cripple your business. Which is why we don’t recommend waiting until the debts have piled up before you contact a debt collector. Most debt collection agencies will work on a single-debt basis, as well as longer contracts or bulk work. So even if you only have a few, or even one overdue invoice, it’s worth speaking to a debt collector.
You Will Tarnish Your Image
It’s very hard to tarnish the image of your business by hiring a debt collector. If you look for a professional and well-reputed collector, who understands the whole process, then your brand image will remain in-tact. A good collector will not harass your clients, or cause any undue upset. So as long as you take time to choose a collector who is reputed, professional, and operates legally, you’ll be fine.
Doing your research before you hire a collector is essential. This simple step helps ensure the entire debt collection process goes smoothly, and is done in a professional manner and maintains the good reputation that your business has worked hard to build. At Debtcol, we work with business owners who want to preserve those key relationships, while still collecting the money owed to them in a timely manner. If that sounds like you, we would love to help. Just get in touch with us today to book your free consultation.