Collecting the outstanding accounts is the most important financial step for your company. The debt collection will add cash flow for your company which helps you to maintain it in a proper way. Besides, most of the businesses are waiting for so long to handle their accounts receivables to any commercial account receivables outsourcing agency.
The chances of recovery go down at least10% for every month if you delay the recovery. Thus, you should consider outsourcing sooner rather than later. Here, we are sharing some of the instances when you should start getting the services of account receivables outsourcing agency.
> Customer avoids contact attempts
When your customers avoid communicating with you, then it is a sign that he wanted to delay the payment. The avoidance is not acceptable and you should outsource the debt collector at this stage who will act on your behalf.
> Refuses to sign a personal guarantee
If your customers are not willing to sign the guarantee, you should ask yourself if you really want to do business with them. This should be a big red flag and there comes the role of debt collecting agency.
> Customer breaks terms of the original agreement
When your customer breaks the terms of the original agreement, then it is another red light that you should hire a debt collector. Hiring an account receivables outsourcing company sends a strong message to your customers that you are not going to tolerate the breaking of terms.
> Customer breaks their first promise to pay
Unless you are charging interest, don’t give your customers a second chance to break the payment. If your customers break the agreement, then there are chances that they will break it again.
> A customer only makes partial payments to buy more time
If your customers make partial payments, then you should hire a debt collecting agency as they are much better professionals skilled to get full payment at once.
> Customer ignores demand letters
The debt collecting agencies also send demand letters on your behalf. This will create a positive impact on your business and you will have the benefit of third party effect on your customers.
> No time for the outstanding invoices
Many large-scale companies outsource their invoice collection to third-party agencies. It makes sense to give it a professional approach for collecting debts and to concentrate on business development activities.
> A customer has disputed the product or service and refuses to pay
The debt collecting agency will understand the terms of agreement and conditions so that they will be able to negotiate the disagreement on your behalf.
Thus, handling your accounts receivables to a commercial collection agency is a good step for your business, as you have better things to do than spending your valuable time for collecting pas dues.
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