Tracking down and acquiring lost income is a big job. If you’re working in a business that experiences delinquent accounts so often that you’ve assembled an in-house commercial debt collection team, you probably already understand this fact all too well. You may have tried a few different employees with little success, but perhaps your team isn’t the problem.
At the end of the day, the simple fact is that collecting unpaid debt from customers or business partners is always a challenge. Rather than continually hunt for better employees, why not seek help from experts with an established track record? You can get a collection agency to supplement your existing team and ensure they’re on the right track.
What are Pre-Collection Services?
Pre-collection services are known by a few different terms, such as:
- First Party Services
- Early Out Services
- BOS
Whatever name you call them by, pre-collection services refer to the practice wherein a business outsources the duties of the accounts receivable department to a collection agency. In the case of a large company, managing an accounts receivable department can involve a substantial number of clients and countless invoices, all containing different amounts and different deadlines. In such a situation, it is easy for employees who are not debt collection specialists to lose track. It is also easy for clients who wish to avoid payment to skirt their financial obligations to your company.
When invoices go well past their due dates, their collection becomes more of a challenge. Attempts to recover missing income for your company also bring some other challenges – especially for those who are not trained and experienced in today’s ethical debt recovery practices.
A Distraction from Your Job
Those managing a company facing unpaid invoices from delinquent clients seldom feel contented to leave the problem alone – especially when results are not forthcoming. When income is missing for extended periods, and you attempt to address the situation without help from an experienced professional, you’ll end up wasting substantial amounts of time attempting to recover from the situation.
Increased Pressure
The burden you face when running a company that’s losing income due to unpaid consumer or commercial debt is big. Trying to track down those who possess delinquent accounts will consume an exceptional amount of your time.
No matter what type of customer or specific situation you’re facing, when one of your customers refuses to pay you for a service or product you’ve already delivered, you face a challenging situation. As the failure to provide any solutions continues, it will cause you to lose focus on your other responsibilities. Finally, this distraction will take a phycological toll beyond its initial financial one.
Don’t Try This at Home
Despite your good intentions to take command of the situation to get your company back on track, attempting to do so without consulting with a debt resolution expert is probably the worst way to handle the situation.
For someone without experience in successful debt resolution, the best-case scenario is likely that your attempts cause you to waste a lot of time. In a worst-case scenario, you allow this extremely frustrating situation to get out of hand, causing you to resort to unethical behaviour or illegal actions.
Before you get carried away with any of these possibilities, you need to ask yourself whether you currently know the legal rights of a debtor and how a debt collector is allowed to contact that individual. If you aren’t familiar with these issues, you need to contact an expert for help.
The Value of Outsourcing
No matter what type of business you’re running, you understand the value of delegating tasks and outsourcing duties to experts. The chances are that you already hire lawyers and accountants rather than attempting to take on specialized jobs on your own. So why do you consider it appropriate to take on the job of collecting debts?
Contacting a Collection Agency
The first step you should take when any account goes overdue is to contact a debt resolution expert. When you outsource your debt issues to a professional company, you’ll gain an abundance of support in settling the matter. That said, should you choose, you won’t need to worry about the case going forward at all. Just let a professional team take over the matter so that cash returns to your company quickly and securely.
Working According to the Law
The most efficient means of managing consumer debt collection is to partner with an expert who can take over the responsibility involved in resolving the case quickly. One of the advantages of this choice will be that you will guarantee that the actions your company takes in its debt resolution strategy will remain within legal standards since you’ll be working with an experienced team who knows debt collection law.
Professional Collection Strategies
You’ll also get to experience unique collection strategies in action. A team that has enjoyed years of successful experience will have honed their abilities in real-world situations. Debt collection specialists understand what works best because they have practiced in situations that have worked well in the past.
Maintaining Ethical Standards
Perhaps the most significant change that the world of collections has experienced in its long history has been the move away from unethical collection strategies. This shift has mainly occurred for two reasons:
- New collections laws have addressed and eliminated many unethical practices
- The success of collection agencies with a mandate for respectful treatment
When you work with a company that holds a high standard of ethical conduct, you’ll be able to rest assured that no unethical treatment will occur in the resolution of your lost income. Professional debt resolution specialists work closely with delinquents to find solutions that work for all parties involved.
After all, no one prefers to earn a bad credit score due to debt problems. Those who avoid payment often do so merely because they have no solutions of their own. In many situations, those who owe money are all too happy to get assistance in putting the problem to a close.
Managing Consumer Relations
A further advantage you’ll enjoy when you work with an experienced collections team with a commitment to respectful conduct is the possibility of repaired relations with your business partners and clients.
In cases where a debt problem escalates, the outcome is usually poor, resulting in animosity between the parties involved. With an ethical debt collector, that is no longer the case. Instead, the parties involved are often happy to settle the problem amicably and are willing to foster that valued partnership again in the future.
Ensuring the Ethical Standards of Your Collections Department
When you hire a team of experts to partner with your in-house collections team or accounts receivable department, you’ll be able to provide examples to your employees that will continue to improve their work in the future. You’ll also be able to establish a renewed commitment to high ethical standards at your company.
If you have unpaid invoices in your accounts receivable department, don’t try to take matters into your own hands. Get the help you need from an experienced team of debt resolution specialists. Contact a collection agency in your area to get started today. You’ll be overjoyed at how quickly the money your company is owed returns to where it belongs.