Given the current economic context, it is difficult for some clients to maintain a financial balance, which can lead to over-indebtedness. There are delays in payment and bills waiting to be paid, but as a business owner, you have no alternative but to claim your due in time. Recovery is a time-consuming task, both in terms of human and financial resources. It requires experienced people who can quickly and effectively recover the money that is owed to your business.
Outsource your collection service in the name of your business development
By assigning your collection service to an outsourcing specialist, your company will be able to save money in the short term while increasing its returns. To achieve this, you will need to choose a provider which can:
- Proceed with early or late debt collections by contacting clients and debtors on your company’s behalf to implement debt averaging.
- Validate data and track defaulted clients so that their contact information is always up-to-date, which would be useful when there is the need to get in touch with them later on.
- Manage and resolve disputes through managers trained in managing and resolving complex situations to ensure the best possible outcome for your business.
The advantages of outsourcing your company’s collection service
Collection is a long, costly and sometimes inefficient task if it is not handled by people who are trained, motivated and well-equipped. However, this service is essential to the financial health of the company. If you feel that your company does not have the technical and human resources to carry it out, outsourcing is the most logical solution.
Cost reduction: hiring and training staff dedicated to the collection service requires a significant financial investment. By assigning your company’s collection service to an outsourcing specialist, you can rely on flexible agents.
Decrease in liabilities: your outsourcing provider will be able to adapt its services according to your needs, your business strategy and your schedules. All in all, the debts that your business is suffering from will be repaid more quickly.
Revenue maximisation: as a company delivering a product or service, it is essential that the work is paid on time, as it is a question of the business’s growth and sustainability in its market. By outsourcing your collection service, your sales and accounting departments will be able to work more efficiently by focusing on their core business.
A better relationship with your clients: it is difficult for a company that is not in the business to communicate properly with a debtor client. Outsourcing your collection service will allow your company to maintain its image among its customers by eliminating any negative interaction and maintaining positive business relationships, thus promoting customer loyalty.
When it is time to outsource your collection service
For many companies, it is never the right time to outsource their collection service. Nevertheless, this strategy is far from paying off, because for every 30 days of late payment by your customers, there is 10% less chance of seeing your money again! So it’s a good idea to outsource as quickly as possible to increase your company’s cash flow and keep it running smoothly.
Signs to consider to take the leap and outsource:
The customer avoids your attempts of contact: when the customer does not answer your calls and mails while he owes you money, it is essential to send him a strong message expressing your need to be paid! Outsourcing gives the advantage of “third-party effect”, that is, assigning the collection of debts to an external company authorised to act on your company’s behalf.
The customer refuses to be his guarantor: a customer who is not willing to guarantee his own business must raise a question on your part regarding his ability to pay for your services or products.
Customer wishes to change the original agreement: sometimes a customer wants to change the terms of the original agreement between your respective companies. A good collection agent is trained to handle this type of contract dispute on your behalf.
The client is not able to honour his first payment: it is not good for your company to give him a second chance, given the high probability that this will happen again. Unless the company agrees to pay interest or penalties for the delay, outsourcing is the perfect solution to ensure that the situation does not occur again.
The customer pays you little by little: unless your business is used to operating like this, outsourcing will allow you to turn the tide, as it is about negotiation. Moreover, your provider undoubtedly has an automated system for managing payments and promises of payments.
The customer ignores reminders: A real extension of your brand and your company, your outsourcing provider is able to find the right words and use the law to persuade your debtor to act quickly and pay you in time!
Saves your accounting department time: it takes time to track invoices awaiting payment! To allow your own human resources to focus on their core business, feel free to outsource your collection service without wasting time.
The customer is dissatisfied with your service or product and he does not want to pay : since your outsourcing provider has a good understanding of your company, its products and services, conditions, etc., he will be able to handle any dispute or disagreement within a friendly and diplomatic framework.
By outsourcing your collection service, you will improve the efficiency of your business thanks to full and timely refunds. By streamlining and improving the debt collection process, you will see a significant reduction in late payments, an increase in cash flow and a healthy recovery in your profitability.