Introduction
Business is not just buying, manufacturing, or selling. It is a collective form of many different activities. As an owner, you know that doing a business is not an easy task. There are so many errands to run for the smooth functioning of the business. Collecting the debt is indeed not a task you are looking forward to. Debt collection is a task that can drain your time, money, and eventually your patience.
Although, It doesn't mean we should avoid this task or wait for the debtors to pay their debt. Unpaid debt can adversely affect your company's cash flow. In the long run, it can even hamper your firm's financial positioning.
However, you can avoid this situation by hiring an agency for the debt collection service India. In this blog, we have mentioned the most common reasons that stop businesses from hiring a debt collection agency.
The 4 most common reasons that stop businesses from appointing a debt collection agency
1) I don't have much debt
People believe that collection agencies only deal with a larger amount of debt. Perhaps you think the debt collection agencies won't be interested in taking on your firm's debt because it isn't a significant amount.
However, think this way if the debt amount can negatively impact your cash flow or your firm's financial health, then it is not too small to ignore. So, instead of spending your time and resources chasing debtors, you can outsource this task to a professional collection agency.
2) Services of a debt collection agency are too expensive
Many business owners have this misbelief that the services of debt collection agencies are too expensive. Hiring a debt collection agency is not an expense but an investment. Many reputed debt collection agencies do not charge hidden fees and operate on a commission-only basis.
It means they will take the pre-decided percentage of the amount from the recovered debt. The "No collection, no commission" policy of debt collection agencies ensures that they will persistently try to recover most of your debt. So, ultimately the cost of hiring a debt collection agency won't be that high for you.
3) Dealing with the debt collection agency is time-consuming
Some people might feel that hiring a debt collection agency involves a long handover process. However, it's not true. Professional debt collection agencies have years of experience in the debt collection field.
So unlike you, they can immediately act upon the situation and start chasing your debtors. So, hiring a debt collection agency will not waste your time. Instead, it will save you time and increase your productivity. So, don't think much and hire an AR Outsourcing service provider for a faster and smoother debt recovery process.
4) The debt collection agency will spoil my relations with clients
Another common misconception is that debt collection agencies harass debtors to recover money from them. This belief makes you worried that if you hire a debt collection agency, then they might do the same with your clients. The aggressive nature of the debt collection agency might scare your clients and spoil your years-old relations with them.
However, this concern is not entirely wrong. You can overcome it by hiring a competent debt collection agency that can maintain its decorum at any stage of debt recovery. The agency will recover your debt from your clients without hampering your relations with them.
Conclusion
Chasing debtors while handling business operations is a tough nut to crack. Besides, it can waste your valuable time, money and stagnate your productivity. While hiring an Account Receivable outsourcing agency for debt collection can benefit you in many ways. It will save you time, resources and maintain a healthy cash flow in your business. So, if you are interested in collaborating with a debt collection agency, hiring Debt Nirvana would be a wise decision. We are one of the most reputed and competent debt collection agencies with experienced staff. Contact us for more information or to get a quote.
